Gigamedia exec shuffle and third quarter results

GigaMedia Ltd has reported on its turnaround development through its third quarter fiscal results, saying cost savings and increased efficiencies are paying off resulting in its first positive cash flow in 10 quarterly reports.

Third Quarter Highlights include:

– Net income of $5.9 million, including gains from sales of marketable securities and investments (Q2/2012: a loss of $3.5 million and Q3/2011: loss of $7.8 million).

– Cash inflow from operations of approximately $550 thousand.

– Short-term debt decreased approximately $1.7 million sequentially to approximately $7.7 million.

– Consolidated revenues of $7.2 million held steady quarter-over-quarter and decreased from $7.8 million in the third quarter of 2011 reflecting decreased contributions from its disposal of IAHGames.

– Revenues for FunTown increased 20 percent quarter-over- quarter to $6.6 million from $5.5 million.

– Consolidated EBITDA was $6.7 million compared to a loss of $2.1 million in the second quarter of 2012 and a loss of $7.7 million in the third quarter of 2011.

GigaMedia said it is continuing its business model shift to focus on online games along with the implementation of new strategies to build efficiencies, improve productivity and drive improved performance.

Looking ahead, GigaMedia’s chief financial officer Dirk Chen said the firm is transitioning its online gaming business to capture rapid market growth in Web games fueled by the popularity of social networks and mobile and portable computer devices in Asia.

The company is anticipating the launch of its GigaCloud, an important new development for the firm that it says will place it as an early mover in addressing affordable, mobile, seamless cloud communication solutions among the millions of SME’s in Asia.

In related news, the firm announced the appointment of Collin Hwang as its new chief executive officer succeeding John Stringer who tendered his resignation as an officer and director with immediate effect.

Stringer was the driving force behind GigaMedia’s turnaround strategy.

Hwang was recruited to the board earlier this month along with the appointment of Mo-Na Chien in the role of Chairman .