TAIPEI, Taiwan, Feb. 17, 2012 /PRNewswire-Asia/ -- GigaMedia
Limited (NASDAQ: GIGM) ("GigaMedia") today announced that new
management is seeking to sell certain of the company's assets in
the first half of 2012. The planned disposals are intended to free
up approximately US$30-US$40 million
for investment in new strategic growth initiatives, in line with
GigaMedia's turnaround plans.
The company's turnaround plans, driven by CEO John Stringer, are based on an explicit
decision-making framework with clear objectives: effectively
managing cash, maintaining the company's listing on NASDAQ, and
executing a new strategic growth plan.
Part of efforts to better manage cash and increase focus, new
Giga's disposal and asset optimization program targets investments
made in certain game studios in Asia, as well as underperforming assets.
Multiple publicly-listed game studios in GigaMedia's investment
portfolio have grown in value. While past results are not a
guarantee of future performance of these investments, based on
current market values of GigaMedia's shareholdings management
believes it has a reasonable expectation of generating cash
proceeds of approximately US$30-US$40
million exclusively from sales of its interests in these
publicly-listed game studios.
Additional details on new management's turnaround plans will be
provided going forward, including on GigaMedia's fourth-quarter
conference call, anticipated in the second half of March.
About GigaMedia
GigaMedia Limited (Singapore
registration number: 199905474H) is a major provider of online
entertainment software and services. Through its subsidiaries,
GigaMedia develops and operates a suite of online games in
Asia, covering all regions of
Greater China and Southeast Asia. More information on GigaMedia
can be obtained from www.gigamedia.com.
The statements included above and elsewhere in this press
release that are not historical in nature are
"forward-looking statements" within the
meaning of the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995. GigaMedia
cautions readers that forward-looking statements are based on the
company's current expectations and involve a number
of risks and uncertainties. Actual results may differ materially
from those contained in such forward-looking statements.
Information as to certain factors that could cause actual results
to vary can be found in GigaMedia's Annual Report on
Form 20-F filed with the United States Securities and Exchange
Commission in June 2011.
For further information contact:
Brad Miller, Investor Relations
Director
Tel: +886-2-2656-8016
Brad.Miller@GigaMedia.com
SOURCE GigaMedia Limited