TAIPEI, Taiwan, May 17, 2012 /PRNewswire-Asia/ -- GigaMedia
Limited (NASDAQ: GIGM) today announced its unaudited financial
results for the first quarter of 2012.
"We made good progress in the first quarter building new Giga,"
stated GigaMedia Chief Executive Officer John Stringer. "Operating results began to
benefit from our aggressive steps to improve productivity and lower
our cost base, and we are continuing to take strong action to align
our expense to revenue ratios with leading game companies."
"As part of our efforts to manage cash, improve margins and
create a business model with leverage, we are in the process of
disposing of our subsidiary IAHGames, which we expect to
further strengthen new Giga's performance," stated CEO John Stringer. "Gross margin in the first
quarter excluding IAHGames was approximately 65
percent."
"Looking ahead, we will continue to execute productivity
initiatives, which will have stronger impact in the second half of
2012 than the first," stated CEO John
Stringer. "We will also take steps to drive our top line in
the second half of 2012, including implementing new performance
compensation programs linked to key KPIs and adding new games."
Overview
- Corporate update: General and administrative expenses decreased
19 percent quarter-over-quarter to $4.0
million from $5.0
million.
- Taiwan: FunTown first-quarter
2012 revenues increased 16 percent quarter-over-quarter to
$6.7 million driven by a 24
percent increase in Tales Runner, an 18 percent
increase in MahJong, and a 37 percent increase in
A.V.A.; net income was $1.1
million.
- Southeast Asia: GigaMedia is
in the process of disposing of its subsidiary IAHGames.
IAHGames first-quarter 2012 revenues were flat
quarter-over-quarter at $1.6 million;
net loss was $1.4 million.
Consolidated Financial Results
Quarter-over-quarter improvements in GigaMedia's first-quarter
2012 consolidated operating results and net loss reflect the
initial impact of turnaround plans implemented by new management
beginning in January 2012.
GigaMedia's turnaround plans are based on an explicit
decision-making framework with clear objectives: effectively
managing cash, maintaining the company's listing on NASDAQ, and
executing new strategic growth plans.
Management expects stronger impact in the second half of 2012
from ongoing initiatives to better manage cash, following
first-half expenses related to downsizing, streamlining and other
actions to enhance efficiencies. Management also plans to implement
new strategic growth initiatives in the second half of 2012. (See,
"Business Outlook," for more details.)
Consolidated results of GigaMedia are summarized in the table
below.
GIGAMEDIA 1Q12
CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
1Q12
|
4Q11
|
Change
(%)
|
1Q12
|
1Q11
|
Change
(%)
|
Revenues
(A)
|
8,412
|
7,394
|
14
|
8,412
|
10,422
|
-19
|
Gross Profit
(A)
|
4,456
|
4,077
|
9
|
4,456
|
5,761
|
-23
|
Loss from
Operations (A)
|
3,238
|
14,064
|
77
|
3,238
|
2,684
|
-21
|
Loss from Continuing
Operations (A)
|
2,551
|
51,234
|
95
|
2,551
|
5,199
|
51
|
Net Loss Attributable
to GigaMedia
|
2,310
|
51,298
|
96
|
2,310
|
5,155
|
55
|
Net Loss Per Share,
Diluted
|
0.05
|
1.01
|
95
|
0.05
|
0.09
|
44
|
Non-GAAP Loss from
Operations(A)(B)
|
2,714
|
5,914
|
54
|
2,714
|
1,906
|
-42
|
Non-GAAP Net Loss
(A) (B)
|
2,239
|
5,516
|
59
|
2,239
|
975
|
-130
|
Non-GAAP Net Loss Per
Share, Diluted (A) (B)
|
0.05
|
0.11
|
55
|
0.05
|
0.02
|
-150
|
EBITDA
(C)
|
(1,281)
|
(50,323)
|
97
|
(1,281)
|
(3,976)
|
68
|
Cash, Cash
Equivalents, Restricted Cash, and Marketable
Securities-Current
|
95,921
|
109,344
|
-12
|
95,921
|
72,924
|
32
|
(A)
|
Excludes results from
discontinued operations.
|
(B)
|
Non-GAAP loss from
operations, net loss and net loss per share exclude results from
discontinued operations, non-cash share-based compensation
expenses, bad debt expenses for loans receivable and certain
non-cash items,as well as expenses related to downsizings. (See,
"Use of Non-GAAP Measures," for more details.)
|
(C)
|
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 first quarter of 2012 increased to
$8.4 million from $7.4 million in the fourth quarter of 2011 and
decreased from $10.4 million in the
first quarter of 2011. The quarter-over-quarter increase reflected
a seasonal pickup in the company's online games business
FunTown.
First-quarter revenues for FunTown grew 16 percent
quarter-over-quarter to $6.7 million
from $5.8 million. The quarterly
sequential increase was attributable to higher contributions from
all games, resulting from successful promotions during the
Chinese New Year holiday. Average
monthly active paying accounts were stable at approximately 75,000
during the first quarter. Average monthly revenue per active paying
account was approximately $29.88
during the first quarter of 2012, up 17 percent from the previous
quarter. First-quarter peak concurrent users were approximately
33,000, up 2 percent from the fourth quarter.
First-quarter revenues for IAHGames were $1.6 million, flat quarter-over-quarter.
GigaMedia is in the process of disposing of 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 first quarter of 2012
increased to $4.5 million from
$4.1 million in the fourth quarter of
2011 and decreased from $5.8 million
in the first quarter of 2011. First-quarter 2012 consolidated gross
profit margin decreased to 53.0 percent from 55.1 percent in the
fourth quarter of 2011 and decreased from 55.3 percent in the first
quarter of 2011. The quarter-over-quarter decrease was attributable
to IAHGames.
Excluding the subsidiary IAHGames that is planned for
disposal, consolidated gross profit in the first quarter of 2012
was approximately $4.4 million and
consolidated gross profit margin was approximately 65.5
percent.
Consolidated operating expenses for the first quarter of 2012
began to benefit from new management's implementation of
productivity initiatives. Consolidated operating expenses decreased
to $7.7 million from $18.1 million quarter-over-quarter and decreased
from $8.4 million year-over-year.
Consolidated operating expenses for the first quarter of 2012
included bad debt expenses and impairment charges totaling
approximately $217 thousand largely
related to IAHGames. Consolidated operating expenses for the
fourth quarter of 2011 included bad debt expenses and impairment
charges largely related to IAHGames totaling approximately
$9.7 million. These items distorted
period comparisons.
Consolidated product development and engineering expenses
decreased to $478 thousand in the
first quarter of 2012 from $871
thousand in the previous quarter and increased compared to
$370 thousand in the first quarter of
2011.
Consolidated selling and marketing expenses were $3.0 million in the first quarter of 2012
compared to $2.5 million in the
previous quarter and $2.9 million in
the first quarter of 2011.
Consolidated general and administrative expenses decreased to
$4.0 million in the first quarter of
2012 from $5.0 million in the
previous quarter and $5.2 million in
the first quarter of 2011. Corporate operating expenses were
$1.9 million in the first quarter of
2012, down from $2.6 million in the
previous quarter.
Consolidated loss from operations for the first quarter was
$3.2 million compared to a loss of
$14.1 million in the fourth quarter
of 2011 and a loss of $2.7 million in
the first quarter of 2011. The period variations primarily
reflected the aforementioned factors affecting revenues and costs
and expenses.
Non-GAAP loss from operations in the first quarter of 2012 was
$2.7 million compared to a loss of
$5.9 million in the fourth quarter of
2011 and a loss of $1.9 million in
the prior year period. (See the attachment to this release entitled
"Reconciliations of Non-GAAP Results of Operations" for more
details.)
Consolidated non-operating income/expenses during the first
quarter of 2012 was income of $853
thousand compared to expenses of $37.1 million in the fourth quarter of 2011 and
expenses of $2.2 million recorded in
the first quarter of 2011. Results in the first quarter of 2012
mainly included gains related to the sales of marketable
securities.
Consolidated net loss for the first quarter of 2012 was
$2.6 million compared to a loss of
$51.2 million in the fourth quarter
of 2011 and a loss of $5.2 million in
the first quarter of 2011. The period variations primarily
reflected the aforementioned factors affecting income/loss from
operations and consolidated non-operating expenses/income.
Non-GAAP net loss for the first quarter of 2012 was $2.2 million, compared to a non-GAAP net loss of
$5.5 million in the fourth quarter of
2011 and a non-GAAP net loss of $975
thousand in the first quarter of 2011. Non-GAAP basic and
fully-diluted loss per share in the first quarter of 2012 were both
$0.05. (See the attachment to this
release entitled "Reconciliations of Non-GAAP Results of
Operations" for more details.)
Consolidated EBITDA for the first quarter of 2012 was a loss of
$1.3 million compared to a loss of
$50.3 million in the fourth quarter
of 2011 and a loss of $4.0 million in
the first quarter of 2011.
Cash and Strategic Investments
Cash, cash equivalents, restricted cash, and marketable
securities-current were $95.9 million
at the end of the first quarter of 2012 compared to $109.3 million at the end of the fourth quarter
of 2011. The decrease largely reflected operating cash expenditures
in IAHGames, final payment for development of the
SpongeBob SquarePants MMO, payment of short-term debt, and a
decline in the market value of GigaMedia's holdings in game studios
planned for disposal. Total short-term borrowings decreased to
$10.1 million at the end of the first
quarter of 2012 compared to $11.8
million for the prior quarter.
Marketable securities -- noncurrent plus investments, consisting
of GigaMedia's strategic holdings in game studios, developers and
other related entities, were $15.6
million at the end of the first quarter compared to
$15.4 million last quarter.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May
17, 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 in the process of disposing of IAHGames.
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, with a portion of the savings
to be re-invested for future growth and a portion to benefit
ongoing financial performance.
Management also plans to implement new strategic growth
initiatives in the second half of 2012, which together with
productivity improvements are expected to result in significantly
improved operating results in the second half of 2012.
Second-quarter financial results
In the second quarter of 2012, management expects consolidated
revenues to decline 10-15 percent from the first quarter impacted
by 1) decreased contributions from IAHGames, and 2)
decreased contributions from FunTown following the Chinese New Year season in the first quarter when
online gamer activity peaks. Management expects gross margin to
remain steady at approximately 65 percent, excluding
IAHGames. Management expects a quarter-over-quarter increase
in total operating expenses in the second quarter due to expenses
related to workforce reductions and the disposal of
IAHGames.
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, net income (loss), and
basic and fully-diluted earnings (loss) per share, which are US
GAAP income from operations, net income and basic and fully-diluted
earnings 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.
Conference Call and Webcast
Management will hold an investor conference call and webcast on
May 17, 2012 at 8:30 p.m. Eastern Daylight Time, which is 8:30
a.m. Taipei Time on May 18, 2012, to
discuss GigaMedia's first-quarter 2012 performance.
Dial-in numbers:
U.S.: +1-718-354-1231
International: +65-6723-9381
Passcode: 78928256
A replay will be available from 12:00
a.m. Eastern Daylight Time on May 18,
2012 for seven days.
U.S.: +1-866-214-5335
International: +612-8235-5000
Passcode: 78928256
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
GigaMedia Limited (Singapore
registration number: 199905474H) is a major provider of online
entertainment software and services. Through its subsidiaries,
GigaMedia develops and operates a suite of online games in
Asia covering the regions of
Greater China and Southeast Asia. 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.
For further information contact:
Brad Miller, Investor Relations
Director
+886-2-2656-8016
Brad.Miller@GigaMedia.com
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
3/31/2012
|
|
12/31/2011
|
|
3/31/2011
|
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
|
USD
|
|
USD
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
|
8,411,839
|
|
7,394,067
|
|
10,422,104
|
|
|
|
|
8,411,839
|
|
7,394,067
|
|
10,422,104
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues (includes share-based compensation
expenses under ASC 718 of $0, -$28 and $73,
respectively)
|
|
|
3,955,498
|
|
3,316,802
|
|
4,661,556
|
|
|
|
|
3,955,498
|
|
3,316,802
|
|
4,661,556
|
|
Gross
profit
|
|
|
4,456,341
|
|
4,077,265
|
|
5,760,548
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Product development and
engineering expenses (includes share-based compensation expenses
under ASC 718 of $0, -$11,600 and $3,886,
respectively)
|
|
|
478,494
|
|
870,627
|
|
369,912
|
|
Selling and marketing
expenses (includes share-based compensation expenses under ASC 718
of $14,562, $18,067 and $15,113, respectively)
|
|
|
2,956,782
|
|
2,522,109
|
|
2,887,726
|
|
General and
administrative expenses (includes share-based compensation expenses
under ASC 718 of -$165,995, -$421,689 and $458,043,
respectively)
|
|
|
4,042,660
|
|
4,999,475
|
|
5,164,946
|
|
Bad debt
expenses
|
|
|
170,125
|
|
1,450,919
|
|
21,901
|
|
Impairment
losses
|
|
|
46,631
|
|
8,298,395
|
|
0
|
|
|
|
|
7,694,692
|
|
18,141,525
|
|
8,444,485
|
|
Loss from
operations
|
|
|
(3,238,351)
|
|
(14,064,260)
|
|
(2,683,937)
|
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
81,754
|
|
88,017
|
|
227,244
|
|
Gain on sales of
marketable securities
|
|
|
501,999
|
|
6,299,029
|
|
0
|
|
Interest
expense
|
|
|
(88,706)
|
|
(144,775)
|
|
(79,830)
|
|
Foreign exchange gain
(loss) - net
|
|
|
328,037
|
|
(205,769)
|
|
5,529
|
|
Loss on disposal of
property, plant and equipment
|
|
|
(160)
|
|
(25,499)
|
|
(924)
|
|
Gain (loss) on equity
method investments - net
|
|
|
141,971
|
|
(36,209,752)
|
|
(2,419,071)
|
|
Gain on disposal of
investments - T2CN
|
|
|
0
|
|
4,738,588
|
|
0
|
|
Impairment loss on
marketable securities and investments
|
|
|
0
|
|
(13,326,719)
|
|
0
|
|
Recovery of loss on
termination of third-party participating right in
subsidiary
|
|
|
0
|
|
1,347,502
|
|
0
|
|
Other
|
|
|
(111,421)
|
|
295,920
|
|
19,432
|
|
|
|
|
853,474
|
|
(37,143,458)
|
|
(2,247,620)
|
|
Loss from continuing
operations before income taxes
|
|
|
(2,384,877)
|
|
(51,207,718)
|
|
(4,931,557)
|
|
Income tax
expense
|
|
|
(166,227)
|
|
(26,677)
|
|
(267,209)
|
|
Loss from continuing
operations
|
|
|
(2,551,104)
|
|
(51,234,395)
|
|
(5,198,766)
|
|
(Loss) income from
discontinued operations
|
|
|
0
|
|
(532)
|
|
34,555
|
|
Net loss
|
|
|
(2,551,104)
|
|
(51,234,927)
|
|
(5,164,211)
|
|
Less: Net loss (gain)
attributable to noncontrolling interest and subsidiary preferred
shares
|
|
|
240,927
|
|
(62,760)
|
|
9,350
|
|
Net loss attributable to
GigaMedia
|
|
|
(2,310,177)
|
|
(51,297,687)
|
|
(5,154,861)
|
|
Earnings (loss) per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
|
(0.05)
|
|
(1.01)
|
|
(0.09)
|
|
(Loss) income from
discontinued operations
|
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
|
(0.05)
|
|
(1.01)
|
|
(0.09)
|
|
Fully-diluted:
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
|
(0.05)
|
|
(1.01)
|
|
(0.09)
|
|
(Loss) earnings from
discontinued operations
|
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
|
(0.05)
|
|
(1.01)
|
|
(0.09)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
50,719,976
|
|
50,742,119
|
|
56,272,341
|
|
Diluted*
|
|
|
50,719,976
|
|
50,742,119
|
|
56,272,341
|
|
*Options to purchase
1,730 thousand shares, 557 thousand shares and 1,954 thousand
shares of common stock were not included in
dilutive
|
|
securities for
three months ended March 31, 2012, December 31, 2011 and March 31,
2011, respectively, as the effect would be
anti-dilutive.
|
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2012
|
|
12/31/2011
|
|
3/31/2011
|
|
|
|
|
unaudited
|
|
audited
|
|
unaudited
|
|
|
|
|
USD
|
|
USD
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
57,396,239
|
|
63,997,038
|
|
64,362,331
|
|
Marketable securities -
current
|
|
36,742,724
|
|
42,346,805
|
|
3,561,868
|
|
Accounts receivable -
net
|
|
6,124,244
|
|
6,450,950
|
|
11,137,164
|
|
Prepaid
expenses
|
|
1,401,243
|
|
1,574,362
|
|
2,449,338
|
|
Restricted
cash
|
|
|
1,781,944
|
|
3,000,000
|
|
5,000,000
|
|
Other
receivables
|
|
|
1,869,151
|
|
750,544
|
|
781,676
|
|
Other current
assets
|
|
871,900
|
|
799,981
|
|
2,256,201
|
|
Total current
assets
|
|
106,187,445
|
|
118,919,680
|
|
89,548,578
|
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
7,123,011
|
|
7,083,820
|
|
39,368,558
|
|
Investments
|
|
|
8,455,074
|
|
8,315,220
|
|
63,914,232
|
|
Property, plant &
equipment - net
|
|
4,041,722
|
|
4,288,097
|
|
5,321,698
|
|
Goodwill
|
|
|
29,178,979
|
|
28,436,978
|
|
39,221,185
|
|
Intangible assets -
net
|
|
15,775,538
|
|
15,534,597
|
|
19,229,917
|
|
Prepaid licensing and
royalty fees
|
|
9,122,034
|
|
7,102,457
|
|
6,570,466
|
|
Other assets
|
|
|
1,137,025
|
|
2,025,144
|
|
5,378,566
|
|
Total assets
|
|
|
181,020,828
|
|
191,705,993
|
|
268,553,200
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
1,821,815
|
|
1,831,495
|
|
5,318,366
|
|
Accrued
compensation
|
|
813,932
|
|
2,100,524
|
|
2,912,535
|
|
Accrued
expenses
|
|
9,997,863
|
|
10,633,710
|
|
11,340,289
|
|
Short-term
borrowings
|
|
10,139,902
|
|
11,773,920
|
|
12,947,984
|
|
Other current
liabilities
|
|
9,426,139
|
|
9,318,627
|
|
10,991,439
|
|
Total current
liabilities
|
|
32,199,651
|
|
35,658,276
|
|
43,510,613
|
|
Other
liabilities
|
|
|
1,275,355
|
|
1,186,094
|
|
7,929,442
|
|
Total
liabilities
|
|
|
33,475,006
|
|
36,844,370
|
|
51,440,055
|
|
|
|
|
|
|
|
|
|
|
Subsidiary preferred
shares
|
|
1,874,448
|
|
1,786,091
|
|
1,545,115
|
|
GigaMedia's
shareholders' equity
|
|
148,997,028
|
|
156,072,119
|
|
218,603,268
|
|
Noncontrolling
interest
|
|
(3,325,654)
|
|
(2,996,587)
|
|
(3,035,238)
|
|
Total equity
|
|
|
145,671,374
|
|
153,075,532
|
|
215,568,030
|
|
Total liabilities and
equity
|
|
181,020,828
|
|
191,705,993
|
|
268,553,200
|
|
|
GIGAMEDIA
LIMITED
|
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
3/31/2012
|
|
12/31/2011
|
|
3/31/2011
|
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
|
USD
|
|
USD
|
|
USD
|
|
I.
|
Loss from
operations:
|
|
|
|
|
|
|
|
|
GAAP
result
|
|
(3,238,351)
|
|
(14,064,260)
|
|
(2,683,937)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
(a) share-based
compensation
|
|
(151,433)
|
|
(415,250)
|
|
477,115
|
|
|
(b) impairment loss on
capitalized software costs and other intangible assets
|
|
0
|
|
3,201,563
|
|
0
|
|
|
(c) impairment loss on
fixed assets
|
|
46,631
|
|
0
|
|
0
|
|
|
(d) impairment loss on
goodwill
|
|
0
|
|
5,096,832
|
|
0
|
|
|
(e) financial results
related to gambling software business
|
|
54,067
|
|
266,871
|
|
300,709
|
|
|
(f)
downsizing
|
|
575,000
|
|
0
|
|
0
|
|
|
Non-GAAP loss from operations
|
|
(2,714,086)
|
|
(5,914,244)
|
|
(1,906,113)
|
|
|
|
|
|
|
|
|
|
|
II.
|
Net loss attributable to
GigaMedia:
|
|
|
|
|
|
|
|
|
GAAP
result
|
|
(2,310,177)
|
|
(51,297,687)
|
|
(5,154,861)
|
|
|
Adjustments:
|
|
|
|
|
|
|
|
|
(a) share-based
compensation
|
|
(159,503)
|
|
(403,862)
|
|
467,735
|
|
|
(b) impairment loss on
capitalized software costs and other intangible assets
|
|
0
|
|
3,159,952
|
|
0
|
|
|
(c) impairment loss on
fixed assets
|
|
46,631
|
|
0
|
|
0
|
|
|
(d) impairment loss on
goodwill
|
|
0
|
|
5,096,832
|
|
0
|
|
|
(e) impairment loss on
marketable securities and investments
|
|
0
|
|
13,326,719
|
|
0
|
|
|
(f) loss (income) from
discontinued operations
|
|
0
|
|
532
|
|
(34,555)
|
|
|
(g) financial results
related to gambling software business
|
|
150,643
|
|
36,533,799
|
|
3,746,976
|
|
|
(h) gain on disposal of
marketable securities and investments
|
|
(501,999)
|
|
(11,037,616)
|
|
0
|
|
|
(i) recovery of loss on
termination of third-party participating right in
subsidiary
|
|
0
|
|
(894,741)
|
|
0
|
|
|
(j)
downsizing
|
|
535,390
|
|
0
|
|
0
|
|
|
Non-GAAP net loss attributable to GigaMedia
|
|
(2,239,015)
|
|
(5,516,072)
|
|
(974,705)
|
|
|
|
|
|
|
|
|
|
|
III.
|
Basic earnings (loss)
per share attributable to GigaMedia:
|
|
|
|
|
|
|
|
|
GAAP
result
|
|
(0.05)
|
|
(1.01)
|
|
(0.09)
|
|
|
Adjustments
|
|
0.00
|
|
0.90
|
|
0.07
|
|
|
Non-GAAP basic EPS
|
|
(0.05)
|
|
(0.11)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
IV.
|
Diluted earnings (loss)
per share attributable to GigaMedia:
|
|
|
|
|
|
|
|
|
GAAP
result
|
|
(0.05)
|
|
(1.01)
|
|
(0.09)
|
|
|
Adjustments
|
|
0.00
|
|
0.90
|
|
0.07
|
|
|
Non-GAAP diluted EPS
|
|
(0.05)
|
|
(0.11)
|
|
(0.02)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
50,719,976
|
|
50,742,119
|
|
56,272,341
|
|
|
Diluted
|
|
50,719,976
|
|
50,742,119
|
|
56,272,341
|
|
|
|
|
|
|
|
|
|
|
V.
|
Reconciliation of Net
Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
Net loss attributable to
GigaMedia
|
|
(2,310,177)
|
|
(51,297,687)
|
|
(5,154,861)
|
|
|
Depreciation
|
|
414,710
|
|
452,626
|
|
555,296
|
|
|
Amortization
|
|
512,040
|
|
553,716
|
|
566,890
|
|
|
Interest (income)
expense
|
|
(58,405)
|
|
(13,573)
|
|
(183,553)
|
|
|
Income tax (benefit)
expense
|
|
161,324
|
|
(18,091)
|
|
240,112
|
|
|
EBITDA
|
|
(1,280,508)
|
|
(50,323,009)
|
|
(3,976,116)
|
|
SOURCE GigaMedia Limited