TAIPEI, Aug. 5, 2015 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its second-quarter 2015 unaudited
financial results.
Message from Management
For the second quarter of 2015, the sales revenues were
$2.7 million. The contribution made
by the mobile games, the social casino games and the cloud
computing business accounted for about 45.7%, 28.2% and 26.5%
respectively.
The mobile gaming market is getting more competitive. Started
from the second quarter of 2015, the Company began to scrutinize
current performance of the mobile gaming business and try to
integrate the resources of the operations in Taiwan and Hong
Kong in order to streamline the business and then hopefully
improve its margin by the end of this year.
In June 2015, the Company entered
into partnership with World Mahjong Ltd. to organize the World
Series of Mahjong 2015 and also became their exclusive online
mahjong game provider; furthermore, will host the online qualifying
tournaments of the World Series of Mahjong 2015 on "ClubOne"
platform. "ClubOne", the Company's in-house developed social casino
platform, is designed also to enable the land-based operators to
consolidate resources for seizing more opportunities that navigate
both online and offline markets.
Besides, in the second quarter of 2015, the Company continued to
dispose partial marketable securities and repaid the short-term
borrowings for lowering its leverage ratio and meanwhile,
increasing its cash position.
Management considers 2015 a turnaround year for the Company. In
addition to current mobile gaming business to be streamlined and
newly launched platform, management also pursues an acquisitive
growth and expects it to bring in more business value to the
Company and also support its future revenue growth.
Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games and
cloud computing services. GigaMedia's online games business FunTown
develops and operates a suite of games in Taiwan and Hong
Kong, with focus on browser/mobile games and social casino
games. GigaMedia's cloud computing business GigaCloud was launched
in early April 2013 and is focused on
providing small and medium-sized enterprises in Greater China with critical communications
services and IT solutions that increase flexibility, efficiency and
competitiveness.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Second Quarter
GIGAMEDIA
2Q15UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
2Q15
|
1Q15
|
Change
(%)
|
2Q15
|
2Q14
|
Change
(%)
|
Revenues
|
2,728
|
3,162
|
-13.7%
|
2,728
|
2,471
|
10.4%
|
Gross
Profit
|
217
|
738
|
-70.6%
|
217
|
819
|
-73.5%
|
Loss from
Operations
|
-3,801
|
-3,416
|
-11.3%
|
-3,801
|
-2,945
|
-29.1%
|
Net Income (Loss)
Attributable to GigaMedia
|
1,377
|
5,239
|
-73.7%
|
1,377
|
-2,677
|
151.4%
|
Net Income (Loss)
Per Share Attributable to GigaMedia, Diluted
|
0.02
|
0.09
|
-77.8%
|
0.02
|
-0.05
|
140.0%
|
EBITDA (A)
|
1,463
|
5,335
|
-72.6%
|
1,463
|
-2,448
|
159.8%
|
Cash and
Marketable Securities-Current
|
68,305
|
75,575
|
-9.6%
|
68,305
|
63,009
|
8.4%
|
(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.)
|
Second-Quarter Financial Results
- Consolidated revenues were $2.7
million, dropped by 13.7% quarter-on-quarter mainly due to
the decrease of the new game releases, but increased by 10.4%
quarter-over-quarter due to the growth of the cloud computing
business.
- Consolidated operating expenses were $4.0 million in 2Q15, down by 3.3%
quarter-on-quarter due to an slight decrease on selling and
marketing expenses, but increased by 6.7% from $3.8 million quarter-over-quarter, resulting from
an increase of selling and marketing expenses for the new
games.
- Consolidated non-operating income was $5.1 million attributable to the capital gain on
disposal of marketable securities-current.
- Net income was $1.4 million, up
by 151.4% quarter-over-quarter
mainly attributable to the gain on sales of marketable
securities.
- Cash and marketable securities-current in 2Q15 accounted for
$68.3 million, decreased by 9.6% from
$75.6 million in 1Q15 resulting from
a disposal of marketable securities-current and the repayment of
short-term borrowings.
- Investments were $6.7 million in
2Q2015, increased approximately $1.0
million quarter-on-quarter, resulting from an investment in
SportsPlus Inc. ( www.sportsplus.me ), a new app for daily fantasy
sports and newly launched in the second quarter this year.
Investments were decreased from $25.5
million in 2Q2014 to $6.7
million in 2Q2015 mainly due to a disposal of securities
investment in April 2015.
Financial Position
GigaMedia maintained its solid financial position with cash and
cash equivalents, marketable securities-current and restricted cash
accounted for $69.3 million as of
June 30, 2015, or approximately
$1.25 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of August
5, 2015. 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 2014 Annual
Report on Form 20-F filed with the U.S.
Securities and Exchange Commission as referenced
below, actual results may differ materially.
In the third quarter of 2015, the Company will continue to
attend the gaming events in order to promote the co-developed new
games and attract overseas publishers to license them in various
countries. Meanwhile, for mobile gaming operation, the Company
currently seeks for cooperation with overseas online platforms in
order to better the monetization of the games.
With regard to social casino game platform, the Company
continues the cooperation talk with overseas operators in order to
license "ClubOne" not only in China but also in South East Asia by the end of 2015.
As for cloud computing business, the Company will continue to
provide customized and integrated services to the corporate
customers. Management also expects it to improve its margin while
the sales revenues are increasing.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements
presented in accordance with US 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.
Webcast Schedule
For Q&A regarding the second quarter 2015 performance upon
the release, investors may send the questions via email to
IR@gigamedia.com.tw by August
10th, and the responses will be replied in the
webcast. Webcast will be available
on the company's official website www.gigamedia.com on August 14th.
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. 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 2013 and its
other filings with the United States Securities and Exchange
Commission.
For further information contact:
Amanda Chang
Investor Relations Department
+886-2-2656-8080
amanda.chang@gigamedia.com.tw
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
6/30/2015
|
|
3/31/2015
|
|
6/30/2014
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
|
2,014,922
|
|
2,718,393
|
|
2,180,171
|
Other
revenues
|
|
|
712,646
|
|
443,692
|
|
290,627
|
|
|
|
2,727,568
|
|
3,162,085
|
|
2,470,798
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues
|
|
|
1,777,811
|
|
1,966,164
|
|
1,291,889
|
Cost of other
revenues
|
|
|
732,775
|
|
457,520
|
|
360,349
|
|
|
|
2,510,586
|
|
2,423,684
|
|
1,652,238
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
216,982
|
|
738,401
|
|
818,560
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
164,085
|
|
181,708
|
|
227,509
|
Selling and marketing
expenses
|
|
|
2,262,207
|
|
2,687,116
|
|
1,677,455
|
General and
administrative expenses
|
|
|
1,265,399
|
|
1,285,835
|
|
1,858,949
|
Other
|
|
|
326,594
|
|
0
|
|
0
|
|
|
|
4,018,285
|
|
4,154,659
|
|
3,763,913
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(3,801,303)
|
|
(3,416,258)
|
|
(2,945,353)
|
|
|
|
|
|
|
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
Interest
income
|
|
|
106,324
|
|
102,529
|
|
174,559
|
Gain on sales of
marketable securities
|
|
|
4,703,500
|
|
9,473,063
|
|
162,051
|
Interest
expense
|
|
|
(48,224)
|
|
(82,113)
|
|
(68,399)
|
Foreign exchange
(loss) gain - net
|
|
|
(17,655)
|
|
(16,242)
|
|
115,438
|
Equity in net
earnings (loss) on equity method investments
|
|
|
22,954
|
|
40,100
|
|
(244,775)
|
Changes in the fair
value of an instrument recognized at fair value
|
|
|
879,472
|
|
(951,660)
|
|
0
|
Other
|
|
|
(508,926)
|
|
18,373
|
|
18,402
|
|
|
|
5,137,445
|
|
8,584,050
|
|
157,276
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
|
1,336,142
|
|
5,167,792
|
|
(2,788,077)
|
Income tax
benefit
|
|
|
170
|
|
13,351
|
|
60,849
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
1,336,312
|
|
5,181,143
|
|
(2,727,228)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
1,336,312
|
|
5,181,143
|
|
(2,727,228)
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
40,525
|
|
58,130
|
|
50,537
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to shareholders of GigaMedia
|
|
|
1,376,837
|
|
5,239,273
|
|
(2,676,691)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
0.02
|
|
0.09
|
|
(0.05)
|
Loss from
discontinued operations
|
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
0.02
|
|
0.09
|
|
(0.05)
|
Diluted:
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
0.02
|
|
0.09
|
|
(0.05)
|
Loss from
discontinued operations
|
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
0.02
|
|
0.09
|
|
(0.05)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
55,261,661
|
|
55,261,661
|
|
53,901,371
|
Diluted
|
|
|
55,262,036
|
|
55,261,926
|
|
53,901,371
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
6/30/2015
|
|
3/31/2015
|
|
6/30/2014
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
68,299,828
|
|
53,856,429
|
|
40,660,576
|
Marketable securities
- current
|
|
5,307
|
|
21,718,274
|
|
22,348,693
|
Accounts receivable -
net
|
|
1,675,561
|
|
2,031,966
|
|
1,352,875
|
Prepaid
expenses
|
|
1,019,249
|
|
671,116
|
|
648,190
|
Restricted
cash
|
|
|
1,000,000
|
|
9,034,062
|
|
8,924,513
|
Other
receivables
|
|
186,994
|
|
3,105,223
|
|
273,032
|
Other current
assets
|
|
273,500
|
|
490,835
|
|
143,465
|
Total current
assets
|
|
72,460,439
|
|
90,907,905
|
|
74,351,344
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
4,744,000
|
|
4,744,000
|
|
9,214,270
|
Investments
|
|
|
6,740,252
|
|
5,724,346
|
|
25,476,917
|
Property, plant &
equipment - net
|
|
1,675,312
|
|
1,719,799
|
|
1,695,953
|
Intangible assets -
net
|
|
206,780
|
|
263,811
|
|
884,979
|
Prepaid licensing and
royalty fees
|
|
5,026,779
|
|
5,144,947
|
|
4,843,848
|
Other
assets
|
|
|
369,685
|
|
356,274
|
|
329,422
|
Total
assets
|
|
|
91,223,247
|
|
108,861,082
|
|
116,796,733
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Short-term
borrowings
|
|
4,536,617
|
|
19,808,307
|
|
19,755,567
|
Accounts
payable
|
|
557,599
|
|
652,708
|
|
332,166
|
Accrued
compensation
|
|
464,384
|
|
363,480
|
|
785,562
|
Accrued
expenses
|
|
3,739,583
|
|
3,439,764
|
|
2,717,972
|
Unearned
revenue
|
|
1,673,170
|
|
1,947,176
|
|
2,289,599
|
Other current
liabilities
|
|
1,800,582
|
|
1,985,012
|
|
3,810,015
|
Total current
liabilities
|
|
12,771,935
|
|
28,196,447
|
|
29,690,881
|
Other
liabilities
|
|
|
1,933,173
|
|
1,935,620
|
|
182,150
|
Total
liabilities
|
|
|
14,705,108
|
|
30,132,067
|
|
29,873,031
|
GigaMedia's
shareholders' equity
|
|
76,607,057
|
|
78,776,989
|
|
86,825,311
|
Noncontrolling
interest
|
|
(88,918)
|
|
(47,974)
|
|
98,391
|
Total
equity
|
|
|
76,518,139
|
|
78,729,015
|
|
86,923,702
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
91,223,247
|
|
108,861,082
|
|
116,796,733
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
6/30/2015
|
|
3/31/2015
|
|
6/30/2014
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
1,376,837
|
|
5,239,273
|
|
(2,676,691)
|
Depreciation
|
|
80,296
|
|
74,212
|
|
75,599
|
Amortization
|
|
64,129
|
|
55,316
|
|
319,683
|
Interest
income
|
|
(106,302)
|
|
(102,529)
|
|
(174,362)
|
Interest
expense
|
|
47,975
|
|
82,102
|
|
68,399
|
Income tax (benefit)
expense
|
|
(170)
|
|
(13,351)
|
|
(60,849)
|
EBITDA
|
|
1,462,765
|
|
5,335,023
|
|
(2,448,221)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamedia-announces-second-quarter-2015-financial-results-300123934.html
SOURCE GigaMedia Limited