- The stock price of GigaMedia Limited (NASDAQ: GIGM) has increased by over 40% pre-market today. This is what you should know about the company.
The stock price of Taipei, Taiwan-based GigaMedia Limited (NASDAQ: GIGM) has increased by over 40% pre-market today. There is no direct news from the company as to why the stock price is going up so it appears there are external factors at play.
GigaMedia Limited is known for providing digital entertainment services in Taiwan and Hong Kong. And the company operates FunTown, a digital entertainment portal that offers mobile and browser-based casual games. For example, it offers MahJong, a traditional Chinese tile based game; casual card and table games; online card games; and chance-based games such as bingo, lotto, horse racing, Sic-Bo, slots, and various casual games. Plus the company company also provides sports games and role-playing games like Tales Runner, a multi-player online obstacle running game; Yume 100, a story -based game that targets female players; Akaseka, a female-oriented game; and Shinobi Master New Link, a male-oriented game.
For the third quarter of 2020, GigaMedia reported revenues of $2.03 million with a gross profit of $1.20 million, an operating loss of $0.36 million and a net loss of $0.25 million. And total revenues increased by 11.1% if compared to last quarter, and gross profit margin improved to 59.0% from 53.6% last quarter.
Plus GigaMedia entered and executed a convertible note purchase agreement to acquire ownership of $10 million principal amount of convertible promissory note issued by Aeolus Robotics Corporation, an R&D company engaged in developing AI-enabled service robots. An announcement about that agreement was made on August 31, 2020, immediately after the closing of the agreement. The issuance of the convertible note provided Aeolus its much-needed working capital. And through this funding, GigaMedia said it would explore possibilities of further strategic cooperation with Aeolus.
Yesterday, RTTNews.com pointed out that the Taiwan stock market finished higher in three straight sessions as it gathered over 350 points or 2.3% along the way. The global forecast for the Asian markets has been upbeat with support expected from the oil and technology stocks. The TSE had finished sharply higher on Thursday following gains from the technology stocks as a whole.
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