Taiwan-based Gigamedia's (ticker: GIGM) CEO Arthur Wang discussed his
company's restructuring, retail, music and broadband strategy on his Q3 results
conference call. Key quotes:
On the company's restructuring:
....i feel it is important, however, to emphasize that the reshaping of a company culture is not an overnight process. As a management team we are committed to building a world-class organization focused on delivering strong results to our shareholders, but we are going to need a bit more time.
On its music distribution business:
....with respect to our music distribution business we are very aware of the challenges facing the local and global music industry and we have and will continue to aggressively manage for the industry downturn. We note, however, that the international music chains are showing improved results this year due to an increase in anti piracy activity and a shift in product mix towards more video products such as DVDs....which are not easily downloaded due to the large size.
On its retail business:
....we also believe that there will always be a role for physical retail channels to satisfy essential pleasure in going shopping. We remain the dominant music distribution channel in Taiwan with 46 stores, very high walk in traffic and high brand recognition.
On its broadband business:
....we find ourselves in a highly competitive retail marketplace which means both subscriber growth and ARPU growth are difficult.
(Quotes are from the CCBN StreetEvents transcript.)