As you know, I believe this firm is a great takeover target; however, I believe the firm is ridiciously undervalued. Looking through the numbers, I see various things that standout:
1. Cash and Equivalents has grown 24% from FY 07, to over $99 million (firm's market cap is only $370 million)
2. Net Income has grown 14% from FY 07 to over $42 million
3. Revenues grew 25% from FY 07 to FY 08
4. COGS are extremely low, allowing the firm to generate 81% Gross Margins in 2008
5. No long-term debt!
Business Units:
GigaMedia Limited conducts its online entertainment business in two business segments.
1. The gaming software segment develops and licenses online poker, casino, and sports betting gaming software solutions and application services, primarily targeting continental European markets.
2. The Asian online games segment operates a suite of play-for-fun online games, mainly targeting online gamers in Greater China.
Outlook for Next Quarter:
Gaming software business. In the first quarter of 2009, GigaMedia expects revenues to be down approximately 10 percent from the fourth quarter of 2008 due to the serious economic downturn in Europe and continued weakness of the euro against the U.S. dollar.
Asian online games business. The company expects first-quarter 2009 revenues to be up approximately 30 percent from the fourth quarter of 2008 driven by a seasonal uptick and strong promotional campaigns surrounding the Chinese New Year holiday, as well as a rebound in FreeStyle revenues following successful resolution of a fourth-quarter hacking issue.
Given the challenging operating environment, the company is taking appropriate measures to cut costs and improve efficiencies. For full year 2009, the company expects strong top and bottom line growth in its Asian online games business and targets financial results in-line with 2008 levels in its gaming software business.
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RF,
ReplyDeleteFEED IS PISSING ME OFF DUDE, IS IT DEAD?