Second-quarter GAAP earnings clocked in at $0.19 per share on $52.5 million in revenue. While that's an impressive 31% jump in sales, the net income line only gained $0.02 per share from last year, or about 12%.
Tempering the bottom-line growth were hefty operational expenses such as the company's development budget for new and improved money-making games, which grew at a higher rate than the top line. Of course, that's the name of the game for a fast-growing tech-oriented business -- evolve or die.
GigaMedia is investing in its infrastructure to continue capturing share in the gambling market. Its venture into sports betting, which will act as a crossover between poker players and sports bettors, will launch in the fourth quarter and is expected to generate strong growth.
The company is well-connected, too. Electronic Arts
There's plenty of competition for all those increasingly wealthy gamblers, including local heroes like Shanda Interactive
Strike while the iron is hot. That's exactly what GigaMedia is doing, and also why the sales look way more impressive than the earnings. These guys are sowing the seeds of massive growth right now, and will reap the rewards in the form of huge earnings and cash flows in later years. Maybe your portfolio should pick up some Cantonese today.
GigaMedia is a Motley Fool Global Gains selection. Shanda Interactive, NetEase.com, and GigaMedia are all Rule Breakers selections. Electronic Arts and Disney are Stock Advisor recommendations. Try any of our Foolish newsletters today, free for 30 days.
Fool contributor Anders Bylund owns a few Disney shares but holds no other position in any of the companies discussed here. You can check out Anders' holdings if you like, and Foolish disclosure doesn't have a gambling problem.
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