TAIPEI, May 3, 2024
/PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced
its first quarter 2024 unaudited financial results.
Comments from Management
For the first quarter of 2024, GigaMedia reported revenues of
$0.73 million with a gross profit of
$0.35 million, an operating loss of
$1.11 million and the net loss of
$0.90 million.
If compared to the previous quarter, the revenues decreased by
16.7%. In this quarter, we continued scaling back and consolidating
resources from underperforming products, and certain disruptive
factors in our sales channel were gradually remediated. While the
turnaround of financial performance may not be immediate, after the
optimizing measures we are encouraged to see gamers' traffic is
stabilizing in our higher margin legacy casual games.
With a slimmer team in place, for 2024 we plan to continue our
exploration of digital entertainment to further develop and promote
our own products and services.
First Quarter Overview
- Operating revenues decreased by 16.7% in quarter-on-quarter
comparison.
- While loss from operations increased to $1.11 million from $0.65
million last quarter, net loss of $0.90 million represented a decrease of loss from
net loss of $2.02 million last
quarter, mainly due to certain year-end evaluation in the previous
quarter for our investments.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games. Unaudited consolidated results of GigaMedia
are summarized in the table below.
For the First Quarter
GIGAMEDIA 1Q24
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
1Q24
|
|
|
4Q23
|
|
|
Change
(%)
|
|
|
1Q24
|
|
|
1Q23
|
|
|
Change
(%)
|
|
Revenues
|
|
|
725
|
|
|
|
870
|
|
|
|
(16.7) %
|
|
|
|
725
|
|
|
|
1,325
|
|
|
|
(45.3) %
|
|
Gross
Profit
|
|
|
346
|
|
|
|
504
|
|
|
|
(31.3) %
|
|
|
|
346
|
|
|
|
792
|
|
|
|
(56.3) %
|
|
Loss from
Operations
|
|
|
(1,114)
|
|
|
|
(645)
|
|
|
NM
|
|
|
|
(1,114)
|
|
|
|
(698)
|
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(902)
|
|
|
|
(2,018)
|
|
|
NM
|
|
|
|
(902)
|
|
|
|
(313)
|
|
|
NM
|
|
Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.08)
|
|
|
|
(0.18)
|
|
|
NM
|
|
|
|
(0.08)
|
|
|
|
(0.03)
|
|
|
NM
|
|
EBITDA
(A)
|
|
|
(1,358)
|
|
|
|
(2,522)
|
|
|
NM
|
|
|
|
(1,358)
|
|
|
|
(705)
|
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
36,815
|
|
|
|
38,783
|
|
|
|
(5.1) %
|
|
|
|
36,815
|
|
|
|
38,119
|
|
|
|
(3.4) %
|
|
NM= Not
Meaningful
(A)
EBITDA (earnings before interest, taxes, depreciation, and
amortization) is provided as a supplement to results provided in
accordance with U.S. generally accepted accounting principles
("GAAP"). (See, "Use of Non-GAAP Measures," for more details.)
|
First-Quarter Financial Results
- Consolidated revenues for the first quarter of 2024 decreased
by 16.7% quarter-on-quarter to $0.73
million, from $0.87 million in
the fourth quarter of 2023, and by 45.3% year-over-year from
$1.32 million in the first quarter of
2023.
- Consolidated gross profit decreased to $0.35 million from $0.50
million in last quarter and decreased by 56.3% from
$0.79 million in the same quarter
last year.
- Consolidated operating expenses were $1.46 million in the first quarter of 2024,
approximately increased by 27.1% when compared to prior
quarter.
- Net loss for the first quarter of 2024 was $0.90 million, which was a decrease of loss from
$2.02 million net loss last
quarter.
- Cash, cash equivalents and restricted cash at the first
quarter-end of 2024 amounted to $36.82
million, decreased by approximately $1.96 million from $38.78
million at the fourth quarter-end of 2023.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounting to $36.82 million, or approximately $3.33 per share as of March 31, 2024.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May 3, 2024. Given
potential changes in economic conditions and consumer spending, the
evolving nature of digital entertainments, and various other risk
factors, including those discussed in the Company's 2023 Annual
Report on Form 20-F filed with the U.S. Securities and Exchange
Commission as referenced below, actual results may differ
materially.
"Since late 2023, we have being re-examining mechanisms in our
legacy casual games and to reconstruct players' ecosystem," said
GigaMedia CEO James Huang. "While
the effect would take some time to exhibit, we believe that will
lead to a healthier gross margin in the long-run for our own
offerings."
Meanwhile, our business strategies always include expanding
through mergers and acquisitions. We will keep looking for
investment opportunities that have strategic capacity to accelerate
our growth and enhance shareholders' value.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements
presented in accordance with U.S. GAAP, the company uses the
following measure defined as non-GAAP by the SEC: EBITDA.
Management believes that EBITDA (earnings before interest, taxes,
depreciation, and amortization) is a useful supplemental measure of
performance because it excludes certain non-cash items such as
depreciation and amortization and that EBITDA is a measure of
performance used by some investors, equity analysts and others to
make informed investment decisions. EBITDA is not a recognized
earnings measure under GAAP and does not have a standardized
meaning. Non-GAAP measures such as EBITDA should be considered in
addition to results prepared in accordance with GAAP, but should
not be considered a substitute for, or superior to, other financial
measures prepared in accordance with GAAP. A limitation of using
EBITDA is that it does not include all items that impact the
company's net income for the period. Reconciliations to the GAAP
equivalents of the non-GAAP financial measures are provided on the
attached unaudited financial statements.
About the Numbers in This Release
Quarterly results
All quarterly results referred to in the text, tables and
attachments to this release are unaudited. The financial statements
from which the financial results reported in this press release are
derived have been prepared in accordance with U.S. GAAP, unless
otherwise noted as "non-GAAP," and are presented in U.S.
dollars.
Q&A
For Q&A regarding the first quarter 2024 performance upon
the release, investors may send the questions via email to
IR@gigamedia.com.tw, and the responses will be replied
individually.
About GigaMedia
Headquartered in Taipei,
Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is
a diversified provider of digital entertainment services.
GigaMedia's digital entertainment service business develops and
operates a suite of digital entertainments in Taiwan and Hong
Kong, with focus on browser/mobile games and casual games.
More information on GigaMedia can be obtained from
www.gigamedia.com.
The statements included above and elsewhere in this press
release that are not historical in nature are "forward-looking
statements" within the meaning of the "safe harbor" provisions of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements include statements regarding expected
financial performance (as described without limitation in the
"Business Outlook" section and in quotations from management in
this press release) and GigaMedia's strategic and operational
plans. These statements are based on management's current
expectations and are subject to risks and uncertainties and changes
in circumstances. There are important factors that could cause
actual results to differ materially from those anticipated in the
forward looking statements, including but not limited to, our
ability to license, develop or acquire additional online games that
are appealing to users, our ability to retain existing online game
players and attract new players, and our ability to launch online
games in a timely manner and pursuant to our anticipated schedule.
Further information on risks or other factors that could cause
results to differ is detailed in GigaMedia's Annual Report on Form
20-F filed in April 2024 and its
other filings with the United States Securities and Exchange
Commission.
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three months
ended
|
|
|
|
3/31/2024
|
|
|
12/31/2023
|
|
|
3/31/2023
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
725
|
|
|
|
870
|
|
|
|
1,325
|
|
|
|
|
725
|
|
|
|
870
|
|
|
|
1,325
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service revenues
|
|
|
379
|
|
|
|
366
|
|
|
|
533
|
|
|
|
|
379
|
|
|
|
366
|
|
|
|
533
|
|
Gross
profit
|
|
|
346
|
|
|
|
504
|
|
|
|
792
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Product development and
engineering expenses
|
|
|
185
|
|
|
|
179
|
|
|
|
178
|
|
Selling and marketing
expenses
|
|
|
378
|
|
|
|
344
|
|
|
|
431
|
|
General and
administrative expenses
|
|
|
896
|
|
|
|
626
|
|
|
|
880
|
|
Other
|
|
|
1
|
|
|
|
—
|
|
|
|
1
|
|
|
|
|
1,460
|
|
|
|
1,149
|
|
|
|
1,490
|
|
Loss from
operations
|
|
|
(1,114)
|
|
|
|
(645)
|
|
|
|
(698)
|
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
471
|
|
|
|
518
|
|
|
|
405
|
|
Foreign exchange (loss)
gain - net
|
|
|
(276)
|
|
|
|
339
|
|
|
|
(1)
|
|
Loss on disposal of
investments
|
|
|
—
|
|
|
|
(1)
|
|
|
|
—
|
|
Changes in the fair
value of an instrument recognized at fair value
|
|
|
9
|
|
|
|
(2,229)
|
|
|
|
(19)
|
|
Other-net
|
|
|
8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
212
|
|
|
|
(1,373)
|
|
|
|
385
|
|
Loss from continuing
operations before income taxes
|
|
|
(902)
|
|
|
|
(2,018)
|
|
|
|
(313)
|
|
Income tax
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net loss attributable
to shareholders of GigaMedia
|
|
|
(902)
|
|
|
|
(2,018)
|
|
|
|
(313)
|
|
Loss per share
attributable to GigaMedia:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.08)
|
|
|
|
(0.18)
|
|
|
|
(0.03)
|
|
Diluted
|
|
|
(0.08)
|
|
|
|
(0.18)
|
|
|
|
(0.03)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
Diluted
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
|
|
3/31/2024
|
|
|
12/31/2023
|
|
|
3/31/2023
|
|
|
|
unaudited
|
|
|
audited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
36,502
|
|
|
|
38,470
|
|
|
|
37,806
|
|
Investment in
securities-current
|
|
|
—
|
|
|
|
—
|
|
|
|
7,950
|
|
Accounts receivable -
net
|
|
|
239
|
|
|
|
227
|
|
|
|
155
|
|
Prepaid
expenses
|
|
|
374
|
|
|
|
54
|
|
|
|
368
|
|
Restricted
cash
|
|
|
313
|
|
|
|
313
|
|
|
|
313
|
|
Other
receivables
|
|
|
371
|
|
|
|
2
|
|
|
|
767
|
|
Other current
assets
|
|
|
138
|
|
|
|
141
|
|
|
|
123
|
|
Total current
assets
|
|
|
37,937
|
|
|
|
39,207
|
|
|
|
47,482
|
|
|
|
|
|
|
|
|
|
|
|
Investment in
securities - noncurrent
|
|
|
5,798
|
|
|
|
5,777
|
|
|
|
2,371
|
|
Property, plant &
equipment - net
|
|
|
112
|
|
|
|
111
|
|
|
|
146
|
|
Intangible assets -
net
|
|
|
10
|
|
|
|
13
|
|
|
|
17
|
|
Prepaid licensing and
royalty fees
|
|
|
251
|
|
|
|
24
|
|
|
|
141
|
|
Other assets
|
|
|
1,322
|
|
|
|
1,365
|
|
|
|
1,546
|
|
Total assets
|
|
|
45,430
|
|
|
|
46,497
|
|
|
|
51,703
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
23
|
|
|
|
44
|
|
|
|
78
|
|
Accrued
compensation
|
|
|
157
|
|
|
|
396
|
|
|
|
134
|
|
Accrued
expenses
|
|
|
784
|
|
|
|
786
|
|
|
|
878
|
|
Unearned
revenue
|
|
|
579
|
|
|
|
573
|
|
|
|
872
|
|
Other current
liabilities
|
|
|
688
|
|
|
|
665
|
|
|
|
637
|
|
Total current
liabilities
|
|
|
2,231
|
|
|
|
2,464
|
|
|
|
2,599
|
|
Other
liabilities
|
|
|
379
|
|
|
|
495
|
|
|
|
794
|
|
Total
liabilities
|
|
|
2,610
|
|
|
|
2,959
|
|
|
|
3,393
|
|
Total equity
|
|
|
42,820
|
|
|
|
43,538
|
|
|
|
48,310
|
|
Total liabilities and
equity
|
|
|
45,430
|
|
|
|
46,497
|
|
|
|
51,703
|
|
GIGAMEDIA LIMITED
Reconciliations of Non-GAAP Results of
Operations
|
|
Three months
ended
|
|
|
|
3/31/2024
|
|
|
12/31/2023
|
|
|
3/31/2023
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Loss to EBITDA
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(902)
|
|
|
|
(2,018)
|
|
|
|
(313)
|
|
Depreciation
|
|
|
12
|
|
|
|
11
|
|
|
|
10
|
|
Amortization
|
|
|
3
|
|
|
|
3
|
|
|
|
3
|
|
Interest
income
|
|
|
(471)
|
|
|
|
(518)
|
|
|
|
(405)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(1,358)
|
|
|
|
(2,522)
|
|
|
|
(705)
|
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2024-financial-results-302135544.html
SOURCE GigaMedia