Asian online game developer and operator GigaMedia, now under new management, revealed several major moves it is implementing with the hopes of turning around its business and increasing shareholder value.
The Taiwanese company has suffered falling revenues and increasing losses in recent quarters, which it has attributed to audience shifts from online gaming to mobile. Last September, the NASDAQ Global Stock Market threatened to delist GigaMedia if it couldn't boost its share price above the $1 minimum.
Since then, GigaMedia has lost its president and COO Thomas Hui, CFO Quincy Tang, and CEO Yichin Lee. But it added former Wyse Technology head John Stringer as its new CEO, and Dirk Chen as its CFO. GigaMedia also appointed Chen and accountant Casey Tung to its board of directors.
Looking to turn around the company, Stringer is executing a some new changes meant to better manage GigaMedia's cash. Part of those changes include merging GigaMedia's Hong Kong offices by the end of the month, establishing new key performance indicators, and reassessing the roles of its business units.
The online game company also announced today that it has regained compliance with NASDAQ's minimum bid price listing requirements, as it's stock price has been above $1 for the last 10 days. GigaMedia will reveal more details on its growth plan and upcoming changes at its expected fourth quarter conference call in the second half of March.
Founded in 1998, GigaMedia develops and operates online games across Greater China (China, Hong Kong, Macao, and Taiwan) and Southeast Asia. As of May 2011, the company employed 523 workers.
