Gigamedia posts 8.1% rise in 2007 Q4 profit

Gigamedia Limited said on Tuesday that its fourth-quarter net profit rose 8.1% on Asian online gaming and entertainment website sales.

For the fourth quarter, net profit increased to US$10.7 million or 18 cents per share from US$9.9 million or 17 cents per share in 2006 fourth quarter. The revenue rose 58.5% or US$ 17.6 million to US$47.7 million year-on-year.

For fiscal year 2007, the company's profit rose 26.3% on Asian online gaming and strong European sales of its poker software. It reaped total profit of US$38.9 million or 65 cents per share compared to US$30.8 million or 51 cents per share in 2006. Fiscal year revenue rose 77% or US$72.6 million to US$166.9 million year-on-year. There was a US$7 million gain on the sale of a business last year.

The Nasdaq-listed company said it expects to launch new games - NBA Street Online, Holic and Hellgate: London in the later half of 2008 in Taiwan and Hong Kong. In Mainland China, the company expects to launch Holic in the fourth quarter of 2008. These game launches are expected to bring strong revenue growth in its gaming software business for this year.

Gigamedia is a major provider of online entertainment software and services and has several subsidiaries including FunTown, T2CN, Hoshin GigaMedia, Koos Broadband Telecom Co., Ltd.

GigaMedia is in discussions with potential buyers of the disposal of its broadband Internet service provider business unit.