TAIPEI, March 24, 2016 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its fourth-quarter and full-year
2015 unaudited financial results.
Message from Management
Fourth quarter was crucial for our company as we completed the
restructuring of the organization. Both the management and the
board agreed to remain the Company in good financial health.
Therefore, in 2015, the Company endeavored to clean up the
underperforming business and investment assets, and streamline the
mobile game business.
In the fourth quarter, the operating revenues generated from the
online and mobile game business were $2.2
million, and its gross profit was $1.1 million and gross margin accounted for about
50%, of which improved adequately compared with 28% of gross margin
in 1Q15.
In 2015, the annual operating revenues were $10.3 million, up by 4.8% from $9.8 million of 2014. However, the Company
recognized $4.3 million of impairment
losses in 2015 mainly for prepaid license and royalty fees of
ArcheAge as a result of an evaluation of its possible profitability
upon release. The short-term borrowings decreased from $18.6 million in 2014 to $6.1 million in 2015; besides, given the market
volatility, the Company disposed most of its marketable securities
and realized a capital gain at the amount of approximately
$20 million.
At the end of September last year, the Company launched a new
mobile game namely "Yume100" licensed from Japan. With this game, the Company started to
find a niche market, targeting female players in the age range of
20 to 40. Up to now, it's been six months upon its release in
Taiwan and its revenue generation
continues to be consistent. As of the end of 2015, the sales
revenues generated by Yume100 were about $1
million. Due to the success of Yume100 launch in
Taiwan, more and more well-known
developers get to approach us for cooperation.
Looking forward to 2016, the Company plans to penetrate the
female niche market and meanwhile, expects for collaboration with
more renowned game developers aiming at publishing more popular
games with good quality and good monetization. Besides, while the
Company continues to look for investment opportunities, the
management still remains conservative views on the global economic
outlook, and carefully evaluates the investment potential.
Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games and
cloud computing services. GigaMedia's online game business,
FunTown, develops and operates a suite of games in Taiwan and Hong
Kong, with focus on browser/mobile games and social casino
games. GigaMedia's cloud computing business, GigaCloud, was
launched in early April 2013 and is
focused on providing small and medium-sized enterprises in
Greater China with critical
communications services and IT solutions that increase flexibility,
efficiency and competitiveness.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Fourth Quarter
GIGAMEDIA 4Q15
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited,
all
figures in US$
thousands,
except per share
amounts)
|
4Q15
|
3Q15
|
Change
(%)
|
4Q15
|
4Q14
|
Change
(%)
|
Revenues
|
2,356
|
2,006
|
17.4%
|
2,356
|
2,660
|
-11.4%
|
Gross
Profit
|
1,005
|
-598
|
268.1%
|
1,005
|
-94
|
1169.1%
|
Loss from
Operations
|
-5,478
|
-5,240
|
-4.5%
|
-5,478
|
-4,330
|
-26.5%
|
Net Income
(Loss)
Attributable to
GigaMedia
|
-8,903
|
-301
|
-2857.8%
|
-8,903
|
5,437
|
-263.8%
|
Net Income
(Loss) Per Share
Attributable to
GigaMedia,
Diluted
|
-0.81
|
-0.03
|
-2600.0%
|
-0.81
|
0.49
|
-265.3%
|
EBITDA (A)
|
-8,815
|
-207
|
-4258.5%
|
-8,815
|
5,675
|
-255.3%
|
Cash and
Marketable
Securities-
Current
|
71,436
|
74,824
|
-4.5%
|
71,436
|
79,980
|
-10.7%
|
|
|
|
|
|
|
|
(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.)
|
Fourth-Quarter Financial Results
- Consolidated revenues were $2.4
million, grew by 17.4% quarter-on-quarter primarily due to
the growth of mobile gaming business with the revenues of
$2.2 million in 4Q15, up from
$1.7 million in 3Q15. The revenues
were down by 11.4% quarter-over-quarter as the Company was
restructuring its cloud computing business in 4Q15 and its
contribution dwindled.
- Consolidated operating expenses were $6.5 million, up from $4.6
million in 3Q15 (+39.7% quarter-on-quarter) mainly resulting
from the impairment losses of $3.1
million.
- Impairment losses were approximately $3.1 million recognized mainly for the prepaid
license and royalty fees of ArcheAge, for which the game license
agreement was signed in October
2010.
- Net loss was $8.9 million in 4Q15
mostly due to $2 million
consideration paid to Strawberry Cosmetics for the termination of
the proposed acquisition and the impairment losses recognized for
ArcheAge and the investment of other games.
Financial Position
GigaMedia maintained its solid financial position with cash and
cash equivalents, marketable securities-current and restricted cash
accounted for $72.4 million as of
December 31, 2015, or approximately
$6.55 per share. In consideration of
short-term borrowings, its net cash was estimated at $66.3 million as of December 31, 2015, or approximately $5.91 per share.
For the Full Year 2015
(all figures in
US$
thousands, except per
share amounts)
|
FY15
(unaudited)
|
FY14
(audited)
|
Change
(%)
|
Revenues
|
10,251
|
9,779
|
4.8%
|
Gross
Profit
|
1,362
|
1,944
|
-29.9%
|
Loss from
Operations
|
-17,935
|
-13,473
|
-33.1%
|
Net Loss
Attributable
to GigaMedia
|
-2,588
|
-5,155
|
49.8%
|
Net Loss Per
Share
Attributable to
GigaMedia, Diluted
|
-0.23
|
-0.48
|
52.1%
|
EBITDA (A)
|
-2,223
|
-4,168
|
46.7%
|
Consolidated revenues increased to $10.3
million in 2015 from $9.8
million in 2014, up by 4.8% mainly due to the growth of
overall business.
Consolidated gross profit decreased to $1.4 million in 2015 from $1.9 million in 2014 (-29.9% year-over-year)
attributable to an increase in operating costs and lowered
operating leverage. The gross margin dropped to 13.3% in 2015, down
from 19.9% in 2014.
Consolidated loss from operations for 2015 was $17.9 million, up from $13.5 million in 2014 as a result of the
impairment losses for ArcheAge and the expenses accrued for the
restructuring of the Company's underperforming business units in
4Q15.
Consolidated net loss attributable to the shareholders of the
Company amounts to $2.6 million in
2015 compared to a loss of $5.2
million in 2014.
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
Full-year and quarterly results
All 2015 quarterly and full-year figures and all 2014 quarterly
results referred to in the text, tables and attachments to this
release are unaudited; all full-year 2014 amounts are audited. 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
Management will not hold an investor conference call and webcast
for a discussion about the financial results of the fourth quarter
and full year 2015 as the release dates of the financial results of
the first quarter 2016 and the 2015 annual report are close.
However, investors may still send the questions via email to
IR@gigamedia.com.tw, and the responses will be replied
individually.
An announcement for the next webcast will be made along with the
release of the financial results of the first quarter of 2016.
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 2015 and its
other filings with the United States Securities and Exchange
Commission.
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
12/31/2015
|
|
9/30/2015
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2014
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
audited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
2,151,598
|
|
1,660,013
|
|
1,739,623
|
|
8,544,926
|
|
8,199,393
|
Other
revenues
|
|
204,215
|
|
345,516
|
|
920,732
|
|
1,706,069
|
|
1,579,551
|
|
|
2,355,813
|
|
2,005,529
|
|
2,660,355
|
|
10,250,995
|
|
9,778,944
|
|
|
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues
|
|
1,043,327
|
|
2,230,148
|
|
1,833,963
|
|
7,017,451
|
|
6,010,149
|
Cost of other
revenues
|
|
307,688
|
|
373,245
|
|
920,471
|
|
1,871,227
|
|
1,824,573
|
|
|
1,351,015
|
|
2,603,393
|
|
2,754,434
|
|
8,888,678
|
|
7,834,722
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
(loss)
|
|
1,004,798
|
|
(597,864)
|
|
(94,079)
|
|
1,362,317
|
|
1,944,222
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
190,547
|
|
151,621
|
|
220,748
|
|
687,961
|
|
892,331
|
Selling and marketing
expenses
|
|
2,057,035
|
|
1,649,356
|
|
1,697,665
|
|
8,655,713
|
|
6,707,346
|
General and
administrative expenses
|
|
1,152,772
|
|
1,997,787
|
|
915,407
|
|
5,701,793
|
|
6,415,549
|
Impairment
losses
|
|
3,446,056
|
|
805,746
|
|
1,401,667
|
|
4,251,803
|
|
1,401,667
|
Other
|
|
(363,885)
|
|
37,291
|
|
0
|
|
0
|
|
0
|
|
|
6,482,525
|
|
4,641,801
|
|
4,235,487
|
|
19,297,270
|
|
15,416,893
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(5,477,727)
|
|
(5,239,665)
|
|
(4,329,566)
|
|
(17,934,953)
|
|
(13,472,671)
|
|
|
|
|
|
|
|
|
|
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
62,201
|
|
62,153
|
|
146,579
|
|
333,207
|
|
682,163
|
(Loss) gain on sales
of marketable securities
|
|
(812)
|
|
5,844,306
|
|
6,011,518
|
|
20,020,057
|
|
8,620,875
|
Interest
expense
|
|
(27,413)
|
|
(24,142)
|
|
(80,344)
|
|
(181,892)
|
|
(243,037)
|
Foreign exchange loss
- net
|
|
(17,113)
|
|
(346,248)
|
|
(244,306)
|
|
(397,259)
|
|
(556,061)
|
Equity in net (loss)
earnings on equity method investments
|
|
(52,011)
|
|
(615,990)
|
|
3,538,522
|
|
(604,947)
|
|
(530,801)
|
Changes in the fair
value of an instrument recognized at fair value
|
|
699
|
|
637
|
|
74,213
|
|
(70,853)
|
|
74,213
|
(Loss) gain on
disposal of investments
|
|
(365)
|
|
37,364
|
|
0
|
|
37,000
|
|
0
|
Impairment loss on
marketable securities and investments
|
|
(1,289,779)
|
|
0
|
|
0
|
|
(1,289,779)
|
|
0
|
Other
|
|
(2,100,315)
|
|
33,477
|
|
263,660
|
|
(2,557,390)
|
|
362,055
|
|
|
(3,424,908)
|
|
4,991,557
|
|
9,709,842
|
|
15,288,144
|
|
8,409,407
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations before income taxes
|
|
(8,902,635)
|
|
(248,108)
|
|
5,380,276
|
|
(2,646,809)
|
|
(5,063,264)
|
Income tax benefit
(expense)
|
|
429
|
|
(125)
|
|
13,005
|
|
13,824
|
|
73,258
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations
|
|
(8,902,206)
|
|
(248,233)
|
|
5,393,281
|
|
(2,632,985)
|
|
(4,990,006)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(8,902,206)
|
|
(248,233)
|
|
5,393,281
|
|
(2,632,985)
|
|
(4,990,006)
|
Less: Net (income)
loss attributable to noncontrolling interest
|
|
(445)
|
|
(53,111)
|
|
43,639
|
|
45,100
|
|
(164,780)
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to shareholders of GigaMedia
|
|
(8,902,651)
|
|
(301,344)
|
|
5,436,920
|
|
(2,587,885)
|
|
(5,154,786)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
(0.81)
|
|
(0.03)
|
|
0.49
|
|
(0.23)
|
|
(0.48)
|
Loss from
discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
(0.81)
|
|
(0.03)
|
|
0.49
|
|
(0.23)
|
|
(0.48)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
(Loss) income from
continuing operations
|
|
(0.81)
|
|
(0.03)
|
|
0.49
|
|
(0.23)
|
|
(0.48)
|
Loss from
discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
(0.81)
|
|
(0.03)
|
|
0.49
|
|
(0.23)
|
|
(0.48)
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
11,052,332
|
|
11,052,332
|
|
11,052,332
|
|
11,052,332
|
|
10,785,393
|
Diluted
|
|
11,052,332
|
|
11,052,332
|
|
11,056,966
|
|
11,052,332
|
|
10,785,393
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
12/31/2015
|
|
9/30/2015
|
|
12/31/2014
|
|
|
unaudited
|
|
unaudited
|
|
audited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
71,432,293
|
|
74,818,341
|
|
50,640,355
|
Marketable securities
- current
|
|
3,830
|
|
5,307
|
|
29,339,926
|
Accounts receivable -
net
|
|
1,246,371
|
|
982,186
|
|
1,297,785
|
Prepaid
expenses
|
|
545,200
|
|
420,918
|
|
564,080
|
Restricted
cash
|
|
1,000,000
|
|
1,000,000
|
|
8,990,666
|
Other
receivables
|
|
112,993
|
|
74,327
|
|
129,126
|
Other current
assets
|
|
225,086
|
|
258,117
|
|
195,998
|
Total current
assets
|
|
74,565,773
|
|
77,559,196
|
|
91,157,936
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
0
|
|
0
|
|
4,744,000
|
Investments
|
|
4,519,147
|
|
5,798,904
|
|
5,780,778
|
Property, plant &
equipment - net
|
|
1,390,711
|
|
1,502,697
|
|
1,663,424
|
Intangible assets -
net
|
|
87,710
|
|
137,532
|
|
221,630
|
Prepaid licensing and
royalty fees
|
|
238,611
|
|
3,150,519
|
|
4,382,772
|
Other
assets
|
|
388,193
|
|
333,006
|
|
353,258
|
Total
assets
|
|
81,190,145
|
|
88,481,854
|
|
108,303,798
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Short-term
borrowings
|
|
6,092,917
|
|
5,780,347
|
|
18,641,390
|
Accounts
payable
|
|
319,601
|
|
280,738
|
|
770,965
|
Accrued
compensation
|
|
759,260
|
|
672,966
|
|
795,431
|
Accrued
expenses
|
|
2,978,563
|
|
2,233,313
|
|
3,464,652
|
Unearned
revenue
|
|
1,750,253
|
|
1,591,386
|
|
1,945,945
|
Other current
liabilities
|
|
1,701,754
|
|
1,632,963
|
|
1,718,709
|
Total current
liabilities
|
|
13,602,348
|
|
12,191,713
|
|
27,337,092
|
Other
liabilities
|
|
1,937,878
|
|
1,937,864
|
|
1,938,256
|
Total
liabilities
|
|
15,540,226
|
|
14,129,577
|
|
29,275,348
|
GigaMedia's
shareholders' equity
|
|
65,649,919
|
|
74,352,277
|
|
79,017,995
|
Noncontrolling
interest
|
|
0
|
|
0
|
|
10,455
|
Total
equity
|
|
65,649,919
|
|
74,352,277
|
|
79,028,450
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
81,190,145
|
|
88,481,854
|
|
108,303,798
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
12/31/2015
|
|
9/30/2015
|
|
12/31/2014
|
|
12/31/2015
|
|
12/31/2014
|
|
|
unaudited
|
|
unaudited
|
|
audited
|
|
unaudited
|
|
audited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net (Loss) Income to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to GigaMedia
|
|
(8,902,651)
|
|
(301,344)
|
|
5,436,920
|
|
(2,587,885)
|
|
(5,154,786)
|
Depreciation
|
|
66,455
|
|
73,079
|
|
76,309
|
|
294,042
|
|
305,779
|
Amortization
|
|
56,793
|
|
59,838
|
|
241,060
|
|
236,076
|
|
1,192,629
|
Interest
income
|
|
(62,201)
|
|
(62,153)
|
|
(146,450)
|
|
(333,186)
|
|
(681,833)
|
Interest
expense
|
|
27,418
|
|
23,934
|
|
80,344
|
|
181,429
|
|
243,037
|
Income tax (benefit)
expense
|
|
(429)
|
|
125
|
|
(13,005)
|
|
(13,824)
|
|
(73,258)
|
EBITDA
|
|
(8,814,615)
|
|
(206,521)
|
|
5,675,178
|
|
(2,223,348)
|
|
(4,168,432)
|
For further information contact:
Annie Sun
Investor Relations Services
Country/City Code 8862 Tel: 2656-8096
IR@gigamedia.com.tw
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2015-financial-results-300241011.html
SOURCE GigaMedia