TAIPEI, March 21, 2014 /PRNewswire/ --
4Q Preliminary Results
- Revenues of approximately $3.4
million, down 11 percent Q-o-Q, in line with the company's
guidance. The decrease reflected the end of operations in December
of the game A.V.A. and a continued decline in contributions from
PC-based casual games, partially offset by new contributions from
the cloud computing business in the fourth quarter.
- Consolidated operating expenses of between $32 million and $33 million, including non-cash
impairments of approximately $30
million consisting primarily of write-downs on goodwill and
intangible assets. During the fourth quarter, GigaMedia recorded a
full impairment of goodwill and intangible assets related to the
company's legacy PC-based online game business acquired in 2006 to
reflect continued declines in that market since that time, as well
as GigaMedia's shift in focus away from its legacy PC-based online
games platform. GigaMedia has restructured its online games
operations and is now focused on browser/mobile and social casino
games. Excluding all non-cash impairments, consolidated operating
expenses were approximately $2.7
million, down from the third quarter of 2013 and
representing the lowest consolidated operating expenses of the
year.
- Net loss of between $30 million and
$31 million, including 1) the aforementioned non-cash
impairments of approximately $30 million and
2) non-operating income of $1.2
million. Excluding the non-cash impairments, net loss was
approximately $500 thousand.
- Cash flow from operations was an outflow of approximately
$1.8 million, an increase from cash
outflow in the third quarter of $78
thousand, due primarily to the following: severance payments
related to headcount reductions; annual employee bonuses; and
annual audit fees.
- Cash and marketable securities-current of approximately
$80.3 million, or approximately
$1.58 per share, up from $74.3 million at the end of 3Q13; short-term debt
of approximately $4.4 million. During
the fourth quarter management took advantage of low interest rates
in Taiwan to fund, in local
currency, new strategic growth initiatives.
GigaMedia Limited (NASDAQ: GIGM) announced today preliminary
fourth-quarter 2013 consolidated financial results.
"We made great progress in 2013 in building new businesses and
strategically positioning ourselves for strong, long-term growth,"
stated GigaMedia Limited Chief Executive Officer Collin Hwang. "We refocused from PC-based games
to browser/mobile and social casino games and launched a new cloud
computing business."
"Momentum is now building: our cloud business reported its first
revenues in the fourth quarter and recently we launched our first
mobile game," stated CEO Collin
Hwang. "Over the next several months, both our online games
and cloud businesses will be launching new products, helping to
compensate for the continued decline in our legacy PC games
business."
"Our growth plans are on track and we are confident they will
drive accelerating revenues and increased shareholder value in 2014
and beyond," stated CEO Collin
Hwang.
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
fourth quarter of 2013 when they are released.
GigaMedia expects to announce its fourth-quarter 2013 financial
results, together with a discussion of new business initiatives, in
early April.
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 Taiwan and
Hong Kong, with focus on
browser/mobile games and social casino games. 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 2013.
For further information contact:
Brad Miller, Investor Relations
Director
Tel: +886-2-2656-8016
Brad.Miller@GigaMedia.com
SOURCE GigaMedia Limited