GigaMedia Preliminary 3Q Results: Net Income of $5.9 Million;
Positive Cash Flow from Operations
TAIPEI, Taiwan, Nov. 1, 2012 /PRNewswire/ --
Highlights
- Net income of $5.9 million,
including gains from sales of marketable securities and
investments
- Cash inflow from operations of approximately $550 thousand
- Operating income in GigaMedia's online games business of
$1.5 million
- Cash, cash equivalents, restricted cash and
marketable securities-current increased approximately $3.5 million sequentially to approximately
$98.4 million
- Short-term debt decreased approximately
$1.7 million sequentially to
approximately $7.7
million
GigaMedia Limited (NASDAQ: GIGM) announced today preliminary
third-quarter 2012 consolidated financial results.
"We have made steady progress building efficiencies and
adjusting our business model this year and began to benefit from
cost savings in the third quarter," stated GigaMedia Chief
Executive Officer John Stringer.
"Complementing this, we strengthened our balance sheet, consistent
with our plans for accretive M&A."
"While we are pleased with our success in turning around
operational challenges, we are disappointed with our recent stock
price performance," stated CEO John
Stringer. "We believe our stock is undervalued; nevertheless
we remain confident in growing shareholder value and see
significant near-term and long-term catalysts that should drive
valuation."
"We will continue to benefit from lower operating costs we've
built into New Giga and are starting to see increasing user
engagement as we revitalize and update our offerings with Web-based
games," stated CEO John Stringer.
"We are also moving quickly to capitalize on new growth
opportunities in Web/mobile based games and in cloud computing and
look forward to sharing more on this as we go forward."
Preliminary Results
Revenues: Remained stable quarter-over-quarter at approximately
$7.2 million, in line with the
company's guidance.
Gross margin: Increased from the second quarter to approximately
68 percent, exceeding guidance.
Operating expenses: Decreased quarter-over-quarter to
approximately $5.8 million, in line
with the company's guidance.
Loss from operations: Decreased quarter-over-quarter to
approximately $909 thousand, in line
with expectations.
Cash, cash equivalents, restricted cash, and marketable
securities-current: Increased approximately $3.5 million sequentially as of September 30, 2012 to approximately $98.4 million; total short-term borrowings
decreased approximately $1.7 million
to approximately $7.7 million.
The financial results presented above are preliminary and
subject to completion. GigaMedia's expectations with respect to
these unaudited results are based on management estimates and
information available at this time. As a result, these preliminary
estimates may be different from the actual results that will be
reflected in GigaMedia's consolidated financial statements for the
third quarter of 2012 when they are released.
GigaMedia expects to announce its third-quarter 2012 financial
results in the second half of November.
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. GigaMedia
cautions readers that forward-looking statements are based on the
company's current expectations and involve a number of risks and
uncertainties. Actual results may differ materially from those
contained in such forward-looking statements. Information as to
certain factors that could cause actual results to vary can be
found in GigaMedia's Annual Report on Form 20-F filed with the
United States Securities and Exchange Commission in April 2012.
For further information contact:
Brad Miller, Investor Relations
Director
Tel: +886-2-2656-8016
Brad.Miller@GigaMedia.com
SOURCE GigaMedia Limited