TAIPEI,
Taiwan, Aug. 23, 2012
/PRNewswire-Asia/ -- GigaMedia Limited (NASDAQ: GIGM) today
announced its unaudited financial results for the second quarter of
2012.
"In the first half of 2012 we took strong steps to turnaround
our performance and build New Giga," stated Chief Executive Officer
John Stringer. "We implemented
extensive workforce reductions, simplified operations to capture
cost savings and increase efficiencies, and took action to end the
operational drags of underperforming subsidiaries that had no clear
path to profitability."
"Our focus on growing lean is working," stated CEO
John Stringer. "We expect our online
games business to deliver positive operating income in the third
quarter of 2012, and to add approximately $5
million in cash in the period from sales of game studio
holdings."
"Looking ahead, we will focus on scaling up our online
games business," stated CEO John
Stringer. "We will also take advantage of growth
opportunities in cloud computing services for SMEs in Asia with our new business -
GigaCloud."
"GigaCloud is a unique cloud offering developed in close
cooperation with Taiwan's
financial services powerhouse Chailease and a consortium of leading
technology companies," stated CEO John
Stringer. "From the beginning, GigaCloud has been designed
to meet the needs of SMEs in Greater
China, based on feedback Chailease received from its
regional SME customers, resulting in an integrated platform of key
services with a strong value proposition and significant
competitive advantages."
"With GigaCloud, we will be an early mover in Asia, the world's fastest growing market for
business VoIP services, offering a unique product and leveraging an
initial go-to-market strategy with Chailease that will put our
product in front of over 15,000 SMEs in Greater China," added CEO John Stringer.
Second Quarter Highlights
- Strengthened management of GigaMedia's online games
business FunTown by adding games industry executive with proven
track record.
- Implemented workforce reductions in FunTown to improve
efficiencies.
- Closed GigaMedia's Jidi
Joy online games operations in Shanghai ending all VIE operations in
China and their drag on
GigaMedia's financial results, consistent with new productivity
initiatives.
- Initiated the disposal of GigaMedia's underperforming
online game operations IAHGames in Southeast Asia.
- Continued to dispose of non-core game studio interests as
part of divestment plans to better manage cash and increase
focus.
Recent Developments
- GigaMedia completed the disposal of a majority ownership
interest in its underperforming subsidiary IAHGames in
Southeast Asia.
- GigaMedia completed the sale of its remaining 33.66
percent interest in its underperforming legacy online gambling
operations MangasEverest.
- GigaMedia unveiled GigaCloud, a new cloud computing
business focused on providing SMEs in Greater China with critical communications
services and IT solutions that increase flexibility, efficiency and
competitiveness, with initial product launch set for early
2013.
- GigaMedia announced a strategic partnership and licensing
agreement with Neowiz, licensing four Web games for Taiwan, Hong
Kong, and Southeast
Asia.
- GigaMedia announced that as a result of solid execution
of productivity initiatives in the first half of 2012, management
expects its online games business to deliver positive operating
income in the third quarter of 2012. (See, "Business Outlook," for
more details.)
- Management expects a stronger cash position in the third
quarter, adding net cash proceeds of approximately $5 million in the period, primarily from
continuing sales of non-strategic game studio holdings.
Consolidated Financial Results
Second-quarter 2012 results represent the second quarter
of operations under new management, who are implementing turnaround
plans. The plans are based on effectively managing cash, driving
productivity, and executing new growth plans in online games and
cloud computing.
Second-quarter results included expenses related to
downsizing, streamlining and other actions to enhance productivity
and improve efficiencies.
Consolidated results of GigaMedia are summarized in the
table below.
GIGAMEDIA 2Q12 CONSOLIDATED FINANCIAL
RESULTS
|
|
(unaudited, all figures in US$ thousands, except per
share amounts)
|
2Q12
|
1Q12
|
Change (%)
|
2Q12
|
2Q11
|
Change (%)
|
Revenues
(A)
|
7,129
|
8,316
|
-14
|
7,129
|
8,792
|
-19
|
Gross Profit
(A)
|
3,852
|
4,672
|
-18
|
3,852
|
4,917
|
-22
|
Loss from Operations (A)
|
2,539
|
2,140
|
-19
|
2,539
|
2,685
|
5
|
Loss from Continuing Operations
(A)
|
2,211
|
1,448
|
-53
|
2,211
|
6,129
|
64
|
Net Loss Attributable to
GigaMedia
|
3,454
|
2,310
|
-49
|
3,454
|
6,959
|
50
|
Net Loss Per Share, Diluted
|
0.07
|
0.05
|
-40
|
0.07
|
0.12
|
42
|
EBITDA (B)
|
(2,124)
|
(1,281)
|
-66
|
(2,124)
|
(5,896)
|
64
|
Cash, Cash Equivalents, Restricted Cash, and
Marketable Securities-Current
|
94,810
|
95,921
|
-1
|
94,810
|
70,663
|
34
|
|
(A) Excludes results from
discontinued operations.
(B) 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.)
|
Consolidated revenues for the second quarter
of 2012 decreased to $7.1
million from $8.3
million in the first quarter of 2012 and
decreased from $8.8 million in
the second quarter of 2011. The quarter-over-quarter decrease
was in line with expectations and reflected comparison with peak
seasonality. Peak gamer activity traditionally occurs in the first
quarter, which benefits from the long Chinese New Year holiday.
Second-quarter revenues for FunTown decreased 18 percent
quarter-over-quarter to $5.5 million
from $6.7 million. The
quarterly sequential decrease was attributable to lower
contributions from all games, resulting from a seasonal decrease in
online gamer activity in the period. Average monthly active paying
accounts were approximately 61,000 during the second quarter.
Average monthly revenue per active paying account was $30.32 during the second quarter of 2012, up 2
percent from the previous quarter. Second-quarter peak concurrent
users were approximately 36,000, up 9 percent from the first
quarter.
Second-quarter revenues for IAHGames were
$1.6 million. In August 2012, GigaMedia concluded the disposal of
a majority ownership interest in this business unit as part of
plans announced by new management to better manage cash, which
includes the disposal of underperforming assets.
Consolidated gross profit for the second
quarter of 2012 decreased to $3.9
million from $4.7 million in
the first quarter of 2012 and decreased from $4.9 million in the second quarter of 2011.
Second-quarter 2012 consolidated gross profit margin decreased to
54.0 percent from 56.2 percent in the first quarter of 2012 and
decreased from 55.9 percent in the second quarter of 2011, with the
decreases reflecting higher proportions of licensed game
revenues.
Excluding the subsidiary IAHGames, consolidated
gross profit in the second quarter of 2012 was approximately
$3.6 million and consolidated gross
profit margin was approximately 66.0 percent.
Consolidated operating expenses for the
second quarter of 2012 continued to trend lower, reflecting initial
benefit from new management's implementation of productivity
initiatives partially offset by related expenses. Consolidated
operating expenses decreased to $6.4
million from $6.8 million
quarter-over-quarter and decreased from $7.6
million year-over-year.
Consolidated product development and engineering expenses
decreased to $280 thousand in the
second quarter of 2012 from $355
thousand in the previous quarter and decreased compared to
$384 thousand in the second quarter
of 2011.
Consolidated selling and marketing expenses were
$2.3 million in the second quarter of
2012 compared to $2.7 million in the
previous quarter and $2.5 million in
the second quarter of 2011.
Consolidated general and administrative expenses increased
to $3.8 million in the second quarter
of 2012 from $3.6 million in the
previous quarter and decreased from $4.6
million in the second quarter of 2011.
Corporate operating expenses were $2.2
million in the second quarter of 2012, up from $1.9 million in the previous quarter.
Consolidated loss from operations for the
second quarter was $2.5 million
compared to a loss of $2.1 million in
the first quarter of 2012 and a loss of $2.7
million in the second quarter of 2011. The period variations
primarily reflected the aforementioned factors affecting revenues
and costs and expenses.
Consolidated non-operating income/expenses
during the second quarter of 2012 was income of $429 thousand compared to income of $858 thousand in the first quarter of 2012 and
expenses of $3.2 million recorded in
the second quarter of 2011. Results in the second quarter of 2012
mainly included gains related to the sales of marketable
securities.
Consolidated net loss for the second quarter
of 2012 was $3.5 million compared to
a loss of $2.3 million in the first
quarter of 2012 and a loss of $7.0
million in the second quarter of 2011. The period variations
primarily reflected the aforementioned factors affecting
income/loss from operations and consolidated non-operating
expenses/income.
Consolidated EBITDA for the second quarter of 2012 was a
loss of $2.1 million compared to a
loss of $1.3 million in the first
quarter of 2012 and a loss of $5.9
million in the second quarter of 2011.
Cash and Strategic Investments
Cash, cash equivalents, restricted cash, and marketable
securities-current were $94.8 million
at the end of the second quarter of 2012 compared to $95.9 million at the end of the first quarter of
2012. Total short-term borrowings decreased to $9.3 million at the end of the second quarter of
2012 compared to $10.1 million for
the prior quarter.
Marketable securities - noncurrent and investments,
consisting of GigaMedia's strategic holdings in game studios,
developers and other related entities, were $12.8 million at the end of the second quarter
compared to $15.6 million last
quarter.
Business Outlook
The following forward-looking statements reflect
GigaMedia's expectations as of August 23,
2012. Given potential
changes in economic conditions and consumer spending, the evolving
nature of online games, and various other risk factors, including
those discussed in the company's
2011 Annual
Report on Form 20-F
filed with the U.S.
Securities and Exchange Commission
as referenced below, actual results
may differ materially.
Turnaround initiatives
Management is reviewing and adjusting business models and
implementing new strategies to build efficiencies, improve
productivity and drive improved performance. This includes reducing
system and administrative and organizational complexities and
reducing personnel to support productivity.
Management implemented workforce reductions in the second
quarter and is continuing to simplify operations to capture cost
savings.
The company expects initiatives implemented in the first
half of 2012 to drive productivity and cost savings in its business
beginning in the second half of 2012; this will allow increased
research and development to support strategic growth
plans.
Management plans to launch a new Web-based action game in
the second half of 2012 in Taiwan
and to conduct beta testing of its new cloud computing services in
the second half of 2012, with launch expected in early
2013.
Third-quarter financial results
In the third quarter of 2012, GigaMedia forecasts a
stronger financial position, with net cash proceeds of
approximately $5 million in the
period, primarily from continuing sales of non-core game studio
holdings.
Management also forecasts improved operating
results across the company. Consolidated
revenues are on pace to hold steady compared to the second quarter
with 1) increased contributions from FunTown primarily from new
game licensing revenues offset by 2) reduced contributions from
IAHGames following its disposal. Management expects gross
margin to remain steady at approximately 65 percent. Management
expects a quarter-over-quarter decrease in
total operating expenses in the third quarter,
reflecting the impact of turnaround initiatives implemented in the
first half of 2012 including workforce reductions and operational
streamlining. As a result, management expects a quarterly
sequential decrease in consolidated operating loss with positive
operating income in GigaMedia's online games business in the third
quarter of 2012.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial
statements presented in accordance with US GAAP, the company uses
the following measures defined as non-GAAP by the SEC: EBITDA and
non-GAAP income (loss) from operations, non-GAAP net income (loss),
and non GAAP basic and fully-diluted earnings (loss) per share.
These amounts are US GAAP income (loss) from operations, net income
(loss) and basic and fully-diluted earnings (loss) per share data
adjusted to exclude the following: 1) the impact of discontinued
operations; 2) the impact of downsizing operations, including
severance and early termination fees related to workforce
reductions; 3) share-based compensation; and 4) certain non-cash
items, including impairment losses related to game licensing, game
studios and other related assets, gains and losses on the sale of
businesses, and impairment losses on marketable securities and
investments, goodwill and other long-lived assets. GigaMedia may
consider whether other significant items that arise in the future
should also be excluded in calculating the non-GAAP financial
measures it uses. The presentation of these non-GAAP financial
measures is not intended to be considered in isolation or as a
substitute for the financial information prepared and presented in
accordance with US GAAP. For more information on these non-GAAP
financial measures, please see the tables captioned
"Reconciliations of Non-GAAP Results of Operations" set forth at
the end of this release.
The company's management uses non-GAAP financial measures
to gain an understanding of the company's comparative operating
performance (when comparing such results with previous periods or
forecasts) and future prospects. The company's non-GAAP financial
measures exclude the aforementioned items from GigaMedia's internal
financial statements for purposes of its internal budgets. Non-GAAP
financial measures are used by the company's management in their
financial and operational decision-making, because management
believes they reflect the company's ongoing business in a manner
that allows meaningful period-to-period comparisons. The company's
management believes that these non-GAAP financial measures provide
useful information to investors in the following ways: (1) in
understanding and evaluating the company's current operating
performance and future prospects in the same manner as management
does, if they so choose, and (2) in comparing in a consistent
manner the company's current financial results with the company's
past financial results. GigaMedia further believes these non-GAAP
financial measures provide useful and meaningful supplemental
information to both management and investors regarding GigaMedia's
performance by excluding certain expenses, expenditures, gains and
losses (i) that are not expected to result in future cash payments
or (ii) that may not be indicative of the company's core operating
results and business outlook.
GigaMedia records the expensing of share-based
compensation based on the FASB Accounting Standards Codification.
The company's management believes excluding share-based
compensation from its non-GAAP financial measures is useful for
itself and investors as such expense will not result in future cash
payments and is otherwise unrelated to the company's core operating
results. Non-GAAP financial measures that exclude stock-based
compensation also enhance the comparability of results against
prior periods.
The company's management believes excluding the non-cash
impairments of loans receivable, game capitalized costs, goodwill
and other long-lived assets and investments is useful for itself
and for investors, as such impairments do not impact cash and are
not indicative of the company's core operating results and business
outlook. The company's management believes excluding the results of
discontinued operations and fees and expenses related to downsizing
operations from its non-GAAP financial measure of net income is
useful for itself and for investors because such gains and losses
are not indicative of the company's core operating results and are
no longer associated with the company's continuing
operations.
The company believes that the presentation of non-GAAP
income from operations, net income, and basic and fully-diluted
earnings per share enables more meaningful comparisons of
performances across periods to be made by excluding the effect of
share-based compensation and items related to downsizing, and that
EBITDA is a measure of performance used by some investors, equity
analysts and others to make informed investment
decisions.
The non-GAAP financial measures have limitations. They do
not include all items of income and expense that affect the
company's operations. Specifically, these non-GAAP financial
measures are not prepared in accordance with US GAAP, may not be
comparable to non-GAAP financial measures used by other companies
and, with respect to the non-GAAP financial measures that exclude
certain items under US GAAP, do not reflect any benefit that such
items may confer to the company. A limitation of using non-GAAP
income from operations excluding share-based compensation expenses
and other non-cash items and adjustments, net income excluding
share-based compensation expenses and other non-cash items and
adjustments, and basic and fully-diluted earnings per share
excluding share-based compensation expenses and other non-cash
items and adjustments is that these non-GAAP measures exclude
share-based compensation expenses and may exclude other items that
have been and will continue to be for the foreseeable future a
recurring expense in the company's business. A limitation of using
EBITDA is that it does not include all items that impact the
company's net income for the period. Management compensates for
these limitations by also considering the company's financial
results as determined in accordance with US GAAP and by providing
specific information regarding the US GAAP amounts excluded from
each non-GAAP measure. Reconciliations of the adjusted income
statement data to GigaMedia's US GAAP income statement data 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.
Results from continuing operations
In June 2012, the board of
directors approved a plan to dispose of the company's Jidi Joy online games operations in
Shanghai. As a result, Jidi
Joy operations have been accounted for as a discontinued
operation in accordance with U.S. GAAP. Therefore, the results
of operations for Jidi Joy have been
removed from the company's results of continuing operations for all
periods presented. The operating assets and liabilities of
Jidi Joy were not significant as of
June 30, 2012.
Assets held for sale
In June 2012, the company
entered into a memorandum of understanding and the board of
directors approved a plan to sell, a 60 percent interest in the
company's IAHGames operations, together with a sale of a 30
percent interest in Game First International
Corporation. In July
2012, the company entered into two stock purchase agreements
(the "SPAs") for the sale with Management Capital International
Limited and Infocomm Asia Holdings Pte.
Ltd. Pursuant to the terms of the SPAs, the
company is to receive US$3.0 million
in four installments. As a result, substantially all of the
operating assets related to the company's IAHGames
operations, including certain liabilities associated with these
assets, are presented as held for sale as of June 30, 2012 in accordance with U.S.
GAAP. IAHGames operations do not qualify as a component
that may be reported as discontinued operations due to the
company's continuing involvement in the component after the
disposal transaction. The sale transaction was completed in
August 2012 and the company has
received the first installment payment of US$750 thousand. The company will deconsolidate
the results of IAHGames operations and begin accounting for
its remaining 20 percent interest under the equity method of
accounting after August
2012.
Conference Call and Webcast
Management will hold an investor conference call and
webcast on August 23, 2012 at
8:30 p.m. Eastern Daylight Time,
which is 8:30 a.m. Taipei Time on August 24,
2012, to discuss GigaMedia's second-quarter 2012
performance.
Dial-in numbers:
U.S.: +1-718-354-1231
International: +65-6723-9381
Passcode: 18895123
A replay will be available from 10:30 p.m.
Eastern Daylight Time on August 23,
2012 for seven days.
U.S.: +1-718-354-1232
International: +612-8235-5000
Passcode: 18895123
A link to the live and archived webcast will be available
at www.gigamedia.com.
Conference Call Format
The call will consist of brief prepared remarks, followed
by live Q&A and management responses to questions submitted via
email. Questions may be sent in advance to
IR@gigamedia.com.tw.
About GigaMedia
Headquartered in Taipei,
Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is
a diversified provider of online games and cloud computing
services. GigaMedia's online games business develops and operates a
suite of games in Asia, with focus
on Web-based/mobile games in emerging markets. The company's cloud
computing business is focused on providing SMEs in Greater China with critical communications
services and IT solutions that increase flexibility, efficiency and
competitiveness. 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 2012 and its
other filings with the United States Securities and Exchange
Commission.
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
Three months
ended
|
|
|
|
6/30/2012
|
|
3/31/2012
|
|
6/30/2011
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
|
7,128,830
|
|
8,315,724
|
|
8,792,206
|
|
|
|
7,128,830
|
|
8,315,724
|
|
8,792,206
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues (includes share-based compensation
expenses under ASC 718 of $0, $0 and $0, respectively)
|
|
|
3,276,561
|
|
3,643,901
|
|
3,875,699
|
|
|
|
3,276,561
|
|
3,643,901
|
|
3,875,699
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
3,852,269
|
|
4,671,823
|
|
4,916,507
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Product development and
engineering expenses (includes share-based compensation expenses
under ASC 718 of $0, $0 and $3,886, respectively)
|
|
|
279,904
|
|
355,210
|
|
384,002
|
Selling and marketing
expenses (includes share-based compensation expenses under ASC 718
of -$3,573, $14,562 and $14,562, respectively)
|
|
|
2,337,434
|
|
2,716,963
|
|
2,517,719
|
General and
administrative expenses (includes share-based compensation expenses
under ASC 718 of $143,268, -$165,995 and $488,689,
respectively)
|
|
|
3,784,495
|
|
3,569,370
|
|
4,582,491
|
Bad debt (recoveries)
expenses
|
|
|
(10,315)
|
|
170,125
|
|
116,980
|
|
|
|
6,391,518
|
|
6,811,668
|
|
7,601,192
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(2,539,249)
|
|
(2,139,845)
|
|
(2,684,685)
|
|
|
|
|
|
|
|
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
Interest
income
|
|
|
73,548
|
|
79,736
|
|
228,172
|
Gain on sales of
marketable securities
|
|
|
926,063
|
|
501,999
|
|
0
|
Interest
expense
|
|
|
(408,161)
|
|
(88,706)
|
|
(104,728)
|
Foreign exchange (loss)
gain - net
|
|
|
(193,279)
|
|
333,937
|
|
62,841
|
Loss on disposal of
property, plant and equipment
|
|
|
(58,992)
|
|
(160)
|
|
(3,994)
|
(Loss) gain on equity
method investments - net
|
|
|
(78,150)
|
|
141,971
|
|
(3,505,168)
|
Other
|
|
|
168,156
|
|
(110,998)
|
|
121,935
|
|
|
|
429,185
|
|
857,779
|
|
(3,200,942)
|
|
|
|
|
|
|
|
|
Loss from continuing
operations before income taxes
|
|
|
(2,110,064)
|
|
(1,282,066)
|
|
(5,885,627)
|
Income tax
expense
|
|
|
(101,417)
|
|
(166,227)
|
|
(243,654)
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
|
(2,211,481)
|
|
(1,448,293)
|
|
(6,129,281)
|
Loss from discontinued
operations, net of tax
|
|
|
(1,418,990)
|
|
(1,102,811)
|
|
(942,056)
|
|
|
|
|
|
|
|
|
Net loss
|
|
|
(3,630,471)
|
|
(2,551,104)
|
|
(7,071,337)
|
Less: Net loss
attributable to noncontrolling interest and subsidiary preferred
shares
|
|
|
176,960
|
|
240,927
|
|
112,532
|
|
|
|
|
|
|
|
|
Net loss attributable to
GigaMedia
|
|
|
(3,453,511)
|
|
(2,310,177)
|
|
(6,958,805)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
|
(0.04)
|
|
(0.03)
|
|
(0.11)
|
Loss from discontinued
operations
|
|
|
(0.03)
|
|
(0.02)
|
|
(0.01)
|
|
|
|
(0.07)
|
|
(0.05)
|
|
(0.12)
|
Fully-diluted:
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
|
(0.04)
|
|
(0.03)
|
|
(0.11)
|
Loss from discontinued
operations
|
|
|
(0.03)
|
|
(0.02)
|
|
(0.01)
|
|
|
|
(0.07)
|
|
(0.05)
|
|
(0.12)
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
50,719,976
|
|
50,719,976
|
|
55,922,021
|
Diluted*
|
|
|
50,719,976
|
|
50,719,976
|
|
55,922,021
|
|
|
|
|
|
|
|
|
*Options to purchase
1,796 thousand shares, 1,730 thousand shares and 2,029 thousand
shares of common stock were not included in dilutive
|
securities for
three months ended June 30, 2012, March 31, 2012 and June 30, 2011,
respectively, as the effect would be anti-dilutive.
|
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
6/30/2012
|
|
3/31/2012
|
|
6/30/2011
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
USD
|
|
USD
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
55,244,421
|
|
57,396,239
|
|
62,083,933
|
|
Marketable securities -
current
|
|
37,783,301
|
|
36,742,724
|
|
3,578,999
|
|
Accounts receivable -
net
|
|
3,930,527
|
|
6,124,244
|
|
9,651,104
|
|
Prepaid
expenses
|
|
996,643
|
|
1,401,243
|
|
1,665,468
|
|
Restricted
cash
|
|
1,781,944
|
|
1,781,944
|
|
5,000,000
|
|
Assets held for sale -
current
|
|
2,173,312
|
|
0
|
|
0
|
|
Other
receivables
|
|
1,314,229
|
|
1,869,151
|
|
811,656
|
|
Other current
assets
|
|
816,420
|
|
871,900
|
|
1,382,240
|
|
Total current
assets
|
|
104,040,797
|
|
106,187,445
|
|
84,173,400
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
6,979,696
|
|
7,123,011
|
|
27,636,201
|
|
Investments
|
|
5,833,680
|
|
8,455,074
|
|
60,479,866
|
|
Retained ownership of
IAHGames
|
|
166,734
|
|
0
|
|
0
|
|
Property, plant &
equipment - net
|
|
2,321,039
|
|
4,041,722
|
|
4,978,999
|
|
Goodwill
|
|
28,817,660
|
|
29,178,979
|
|
39,904,201
|
|
Intangible assets -
net
|
|
15,487,140
|
|
15,775,538
|
|
19,328,199
|
|
Assets held for sale -
noncurrent
|
|
2,930,806
|
|
0
|
|
0
|
|
Prepaid licensing and
royalty fees
|
|
9,277,977
|
|
9,122,034
|
|
6,702,454
|
|
Other assets
|
|
673,053
|
|
1,137,025
|
|
5,801,340
|
|
Total assets
|
|
176,528,582
|
|
181,020,828
|
|
249,004,660
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Accounts
payable
|
|
407,464
|
|
1,821,815
|
|
4,760,555
|
|
Accrued
compensation
|
|
969,120
|
|
813,932
|
|
3,111,677
|
|
Accrued
expenses
|
|
8,675,494
|
|
9,997,863
|
|
10,323,398
|
|
Short-term
borrowings
|
|
9,346,360
|
|
10,139,902
|
|
13,224,118
|
|
Liabilities held for
sale - current
|
|
3,900,461
|
|
0
|
|
0
|
|
Other current
liabilities
|
|
7,342,720
|
|
9,426,139
|
|
11,265,618
|
|
Total current
liabilities
|
|
30,641,619
|
|
32,199,651
|
|
42,685,366
|
|
Liabilities held for
sale - noncurrent
|
|
536,723
|
|
0
|
|
0
|
|
Other
liabilities
|
|
659,401
|
|
1,275,355
|
|
8,167,628
|
|
Total
liabilities
|
|
31,837,743
|
|
33,475,006
|
|
50,852,994
|
|
|
|
|
|
|
|
|
|
Subsidiary preferred
shares
|
|
1,962,806
|
|
1,874,448
|
|
1,625,441
|
|
|
|
|
|
|
|
|
|
GigaMedia's
shareholders' equity
|
|
146,319,109
|
|
148,997,028
|
|
199,755,037
|
|
|
|
|
|
|
|
|
|
Noncontrolling
interest
|
|
(3,591,076)
|
|
(3,325,654)
|
|
(3,228,812)
|
|
|
|
|
|
|
|
|
|
Total equity
|
|
142,728,033
|
|
145,671,374
|
|
196,526,225
|
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
176,528,582
|
|
181,020,828
|
|
249,004,660
|
|
|
|
|
|
|
|
|
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
6/30/2012
|
|
3/31/2012
|
|
6/30/2011
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Loss from
operations:
|
|
|
|
|
|
|
GAAP
result
|
|
(2,539,249)
|
|
(2,139,845)
|
|
(2,684,685)
|
Adjustments:
|
|
|
|
|
|
|
(a) share-based
compensation
|
|
139,695
|
|
(151,433)
|
|
507,137
|
(b) financial results related
to gambling software business
|
|
25,014
|
|
54,067
|
|
365,443
|
(c) downsizing
|
|
158,000
|
|
90,000
|
|
0
|
Non-GAAP loss from operations
|
|
(2,216,540)
|
|
(2,147,211)
|
|
(1,812,105)
|
|
|
|
|
|
|
|
Net loss attributable to
GigaMedia:
|
|
|
|
|
|
|
GAAP
result
|
|
(3,453,511)
|
|
(2,310,177)
|
|
(6,958,805)
|
Adjustments:
|
|
|
|
|
|
|
(a) share-based
compensation
|
|
130,920
|
|
(159,503)
|
|
498,402
|
(b) loss from discontinued
operations
|
|
1,418,990
|
|
1,102,811
|
|
942,056
|
(c) financial results related
to gambling software business
|
|
14,638
|
|
150,643
|
|
4,757,922
|
(d) gain on disposal of
marketable securities and investments
|
|
(926,063)
|
|
(501,999)
|
|
0
|
(e) downsizing
|
|
131,140
|
|
193,390
|
|
0
|
Non-GAAP net loss attributable to GigaMedia
|
|
(2,683,886)
|
|
(1,524,835)
|
|
(760,425)
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share attributable to GigaMedia:
|
|
|
|
|
|
|
GAAP
result
|
|
(0.07)
|
|
(0.05)
|
|
(0.12)
|
Adjustments
|
|
0.02
|
|
0.02
|
|
0.11
|
Non-GAAP basic EPS
|
|
(0.05)
|
|
(0.03)
|
|
(0.01)
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per share attributable to GigaMedia:
|
|
|
|
|
|
|
GAAP
result
|
|
(0.07)
|
|
(0.05)
|
|
(0.12)
|
Adjustments
|
|
0.02
|
|
0.02
|
|
0.11
|
Non-GAAP diluted EPS
|
|
(0.05)
|
|
(0.03)
|
|
(0.01)
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
Basic
|
|
50,719,976
|
|
50,719,976
|
|
55,922,021
|
Diluted
|
|
50,719,976
|
|
50,719,976
|
|
55,922,021
|
|
|
|
|
|
|
|
Reconciliation of Net
Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to
GigaMedia
|
|
(3,453,511)
|
|
(2,310,177)
|
|
(6,958,805)
|
Depreciation
|
|
404,896
|
|
414,710
|
|
450,567
|
Amortization
|
|
557,786
|
|
512,040
|
|
568,652
|
Interest (income)
expense
|
|
263,058
|
|
(58,405)
|
|
(162,819)
|
Income tax
expense
|
|
104,152
|
|
161,324
|
|
206,165
|
EBITDA
|
|
(2,123,619)
|
|
(1,280,508)
|
|
(5,896,240)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For further information, please contact:
Brad Miller, Investor Relations
Director
+886-2-2656-8016
Brad.Miller@GigaMedia.com
SOURCE GigaMedia Limited