GigaMedia Limited (NASDAQ:GIGM) released the prelim results for its 4Q operations on 21st March. The good tidings that the announcement conveyed sent the stock coasting upwards to post a 9.5 percent increase over its previous day close.
Revenue for the quarter is expected to settle at $3.4 million, which would translate into a 11 percent dip over 4Q12 numbers. T he prelim revenue is in line with the guidance the company had provided for the quarter during its 3Q earnings call. The revenue dip has been linked to the coming to end of its popular gaming title A.V.A as also the continued fall in demand for P.C based games in the past few quarters.
The decrease reflected the end of operations in December of the game A.V.A. and a continued decline in contributions from PC-based casual games, partially offset by new contributions from the cloud computing business in the fourth quarter.
Laying out the huge strides that the company has made in the past few quarters, GigaMedia Limited (NASDAQ:GIGM) Chief Executive Officer and Director Collin Hwang has been quoted to have said that, “We made great progress in 2013 in building new businesses and strategically positioning ourselves for strong, long-term growth. We refocused from PC-based games to browser/mobile and social casino games and launched a new cloud computing business. Momentum is now building: our cloud business reported its first revenues in the fourth quarter and recently we launched our first mobile game.”
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Looking ahead, the CEO disclosed that his priorities would be to increase the number of online games which are released on a weekly basis and concentrate the company’s execution capabilities in bringing out more cloud based solutions. Operating expenses for the quarter came in around $33 million, while net loss is expected to come in between $30 to $31 million in the same reporting period.