Taiwan-based GigaMedia, owner of Everest Poker, reports a 77 percent increase in revenues to $166.9 million and a 73 percent increase in operating income to $38.1 million in 2007, driven by growth in its poker software business in Europe and its online games business in Asia.
In the fourth quarter, revenues improved 11 percent to $47.7 million compared to the third quarter while net income grew 10 percent to $10.7 million.
"We made excellent progress building a powerful online entertainment brand in Europe and an enormous pan-Asian online game platform, and closed out the year with strong momentum during an even stronger 2008," said chief executive Arthur Wang.
Gigamedia has two main business segments: a gaming software division that develops online poker and casino solutions for European markets, and a division that operates an online suite of play-for-fun games for an Asian audience, particularly in China.
The software division returned full year revenues of $119 million and gross profit of $102.8 million, fueled by continued strong growth on Everest Poker.
In the online games division, the company says it "strengthened its position as a leader in Asia, growing its regional footprint significantly, enhancing its game portfolio by licensing expected hit titles targeting a full range of gamers, and adding to its ability to source hot games through investments in leading game development studios."
As reported:
Highlights of Full-Year 2007 Unaudited Results
-- Consolidated revenues rose 77 percent to a record US$166.9 million.
-- Consolidated operating income grew 73 percent to a record US$38.1
million.
-- Consolidated net income of a record US$38.9 million, up 63 percent
after deduction of a one-time after-tax disposal gain of
approximately $7.0 million in 2006. GAAP basic and fully-diluted
earnings per share were US$0.74 and US$0.65, respectively.
-- Non-GAAP net income was US$40.6 million. Non-GAAP basic and fully-
diluted earnings per share were US$0.77 and US$0.68, respectively,
which excludes non-cash share-based compensation expenses.
-- Cash, cash equivalents and marketable securities-current totaled
US$79.9 million at year end.
Highlights of Fourth-Quarter 2007 Unaudited Results
-- Fourth-quarter poker software revenues grew 21 percent from the
third quarter of 2007.
-- Consolidated revenues climbed 59 percent to US$47.7 million from
US$30.1 million in 2006 and grew by 11 percent from the previous
quarter.
-- Consolidated operating income rose 16 percent to US$9.3 million from
US$8.0 million in 2006 and declined by 7 percent quarter-over-
quarter.
-- Consolidated net income increased 8 percent to US$10.7 million from
US$9.9 million in 2006 and grew by 10 percent from the previous
quarter. GAAP basic and fully-diluted earnings per share were
US$0.20 and US$0.18, respectively.
-- Non-GAAP net income was US$11.3 million. Non-GAAP basic and fully-
diluted earnings per share were US$0.21 and US$0.19, respectively,
which excludes non-cash share-based compensation expenses.
Recent Developments
-- World Series of Poker: Everest Poker secures key multiyear
sponsorship -- strong platform for launch into U.S., pending
legalization.
-- EA SPORTS FIFA Online 2: Southeast Asian affiliate Infocomm Asia
Holdings signs with Electronic Arts -- brings hot game to more than
20 million online gamers and over 100 million soccer fans in SE
Asia.