GigaMedia Limited (NASDAQ:GIGM) Stock In Focus After Q1 Earnings

Yesterday, GigaMedia Limited (NASDAQ:GIGM) was in the news on Tuesday after it announced its unaudited financial results for the first fiscal quarter of 2022. The announcement of the results proved to be a boost for the GigaMedia stock as it ended the day with gains of 2%.

Market Stats

On Tuesday, GIGM stock gained 1.74% to $1.75 with more than 9.4K shares, compared to its average volume of 38K shares. The stock moved within a range of $1.7000 – 1.7800 after opening trading at $1.73. 

Earnings Recap

In this situation, it may be a good idea for investors to take a closer look at the numbers. The company announced that in the first quarter it had brought in revenues of as much as $1.55 million to go along with a gross profit of $0.90 million. On the other hand, the operating losses for the quarter came in at $0.83 million and the net losses for the period stood at $1.10 million.

In this context, it is necessary to point out that the revenues for the quarter actually reflected a sequential rise to the tune of as much as 23%. GigaMedia noted that the rise in revenues was mainly due to the fact that it had made considerably efforts towards the promotion of a licensed gam that found lot of takers in Hong Kong during the course of the long stay home period. It remains to be seen if the stock can add to its gains today.

Key Quote

“Notwithstanding the disruption of the pandemic, we are making progress in developing and calibrating a robust business model for our in-house casual games,” said GigaMedia CEO James Huang. “We will continue executing our strategy of internally-driven growth by cultivating customer relationships, boosting productivity of the products and improving cost structure and effective marketing.”

Traders Corner

GIGM stock is trading below the 50-Day and 200-Day Moving averages of $1.79 and $2.29 respectively. Moreover, the stock is trading below the 20-Day moving average of $1.74.