Taiwanese-based gaming company GigaMedia (NASDAQ:GIGM) finally reported its fiscal second and third quarter results on Monday and they were anything but Giga. Earnings and revenues for both quarters missed analyst estimates horribly and also represented substantial year-over-year declines. Most notably, the company went from producing $23.2 million in net income for the combined period in 2008 to posting a $2.3 million loss in 2009. Ouch.

The results paint a dire picture of a company whose current operations are in decline with no clear catalyst for improvement. GigaMedia's gaming software business -- which operates poker site Everest Poker -- is falling prey to stiff competition, with revenues falling 26% year over year in the third quarter. In the meantime, GigaMedia's main growth driver, its Asian online games division, isn't really growing, posting only a 6% increase in revenues as newly launched games disappoint. In a clear sign that things aren't proceeding as planned, GigaMedia expects $35-$45 million in non-cash write-offs going forward related to underperforming online game assets.

Take all of the above ugliness together and it's easy to see why disaffected shareholders want out. As of this writing, the stock is making fresh 52-week lows after being decidedly bludgeoned. Nonetheless, I would submit that, at these prices, the selling might be overdone for valuation reasons alone.

Combine the $100 million up-front GigaMedia is set to receive as a result of its alliance with Mangas Gaming with the $73.9 million in net cash on GigaMedia's balance sheet, and one very closely approximates GigaMedia's $176 million market capitalization as of Tuesday's close. In other words, GigaMedia is essentially trading for its cash-on-hand with little to no value assigned to its operating business; those investing now are getting its 40% stake in Everest Poker, as well as its Asian online games business, for free.

Whatever the case, sticking with GigaMedia is clearly a gamble given its dim and uncertain outlook. Those looking for alternative Asian gaming opportunities might consider Perfect World (NASDAQ:PWRD), NetEase.com (NASDAQ:NTES), or Shanda Interactive (NASDAQ:SNDA).

Fool contributor Devon Rackle does not own shares in any of the companies listed in this article. Perfect World, NetEase.com, and Shanda are Motley Fool Rule Breakers recommendations. Motley Fool Options has recommended puts on Perfect World. The Fool has a disclosure policy.