TAIPEI, Taiwan, May 6, 2016 /PRNewswire/ -- GigaMedia
Limited (NASDAQ: GIGM) today announced its first-quarter 2016
unaudited financial results.
CEO's comments
"The positive increase in revenue of our licensed game, Yume100
which began last quarter, has continued into 2016. The revenues in
the fourth quarter of 2015 were 0.98 million, and for the first
quarter of 2016 increased by 26 percent to $1.24 million,"
stated GigaMedia Limited Chief Executive Officer Collin Hwang. "We are glad to see the steady
growth, and going forward, we remain committed to keep the revenue
growing up."
"In the following quarters, we will launch new licensed games
from Japan, Korea and China. We expect to add new revenue streams
from our licensed products,"
GigaMedia Limited Chief Executive Officer Collin Hwang continued.
"Meanwhile, we also persist in reviewing our operational plan of
Cloud business. We plan to combine our experiences in online games
and cloud business, which allow us to provide integrative services
to game companies or potential entrants in gaming industry. While
we restructure our cloud business, we are also looking for overseas
partners for casual game business. This could help us to realize
the plan of integration."
"Besides keeping the Company's online games maintain stable, and
study the feasibility of the transformation of cloud business, cost
saving is still undergoing to increase operations
efficiency," stated GigaMedia
Limited Chief Executive Officer Collin
Hwang.
Overview
- FunTown operations gross margin improved to 57 percent from 52
percent in the fourth quarter of 2015 on higher revenue and lower
outsourced fees.
- The Company's consolidated EBITDA for the first quarter of 2016
amounted to $1 million, a growth of
112% from minus $8.8 million a
quarter before. The consolidated gross profit increased
$0.3 million to $1.3 million.
- The online game business expects to soon announce the licensing
of a popular mobile-based RPG game. Following localization,
planning and testing, management is looking ahead to its launching
in the second quarter this year, and to bring in revenue in the
third quarter.
- General and administrative expenses continued trending down,
decreasing 27 percent year-on-year.
- Low headquarters operating expenses of $0.75 million, down from $0.9 million in the fourth quarter of 2015.
- Cash outflow from operations of approximately $1 million.
- Short-term debt remained at approximately $6.2 million.
- The online game business has achieved break even in the first
quarter of 2016, and the management expects to have
sustainable revenue growth.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games and
cloud computing services. GigaMedia's online games business FunTown
develops and operates a suite of games in Taiwan and Hong
Kong, with focus on browser/mobile games and social casino
games. GigaMedia's cloud computing business GigaCloud was launched
in early April 2013 and is focused on
providing small and medium-sized enterprises in Greater China with critical communications
services and IT solutions that increase flexibility, efficiency and
competitiveness.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the First Quarter
GIGAMEDIA
1Q16UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited,
all
figures in US$
thousands,
except per
share amounts)
|
1Q16
|
4Q15
|
Change
(%)
|
1Q16
|
1Q15
|
Change
(%)
|
Revenues
|
2,414
|
2,356
|
2.46%
|
2,414
|
3,162
|
-23.66%
|
Gross
Profit
|
1,370
|
1,005
|
36.32%
|
1,370
|
738
|
85.64%
|
Loss from
Operations
|
(482)
|
(7,538)
|
93.61%
|
(482)
|
(3,416)
|
85.89%
|
Net Income
(Loss)
Attributable to
GigaMedia
|
1,059
|
(8,557)
|
112.38%
|
1,059
|
5,239
|
-79.79%
|
Net Income
(Loss) Per
Share
Attributable to
GigaMedia,
Diluted
|
0.10
|
(0.77)
|
112.99%
|
0.10
|
0.47
|
-78.72%
|
EBITDA (A)
|
1,080
|
(8,870)
|
112.18%
|
1,080
|
5,335
|
-79.76%
|
Cash and
Marketable
Securities-
Current
|
72,506
|
71,436
|
1.50%
|
72,506
|
75,575
|
-4.06%
|
(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.)
|
First-Quarter Financial Results
- Consolidated revenues for the first quarter of 2016 increased
to $2.4 million from $2.3 million in the fourth quarter of 2015 and
decreased from $3.2 million in the
first quarter of 2015. The quarter-on-quarter increase reflected
the steady growth in the Company's games business FunTown.
First-quarter revenue from FunTown grew 11 percent
quarter-on-quarter to $2.4 million
from $2.2 million. The quarterly
increase was mainly from the licensed game Yume100 and TalesRunner
in Hong Kong.
- Consolidated operating expenses were $1.9 million in the first quarter of 2016, which
made significant change from the fourth quarter last year,
decreased 78% from $8.5 million to
$1.9 million quarter-on-quarter,
primarily due to impairment loss of $3.1
million and termination expense of a proposed acquisition of
$2.0 million recognized in the fourth
quarter of 2015. Excluding such impairment loss and termination
expense, the consolidated operating expenses decreased by
$1.6 million, or 46%,
quarter-on-quarter primarily due to reduced selling and marketing
expenses as well as general and administrative expenses.
- Consolidated non-operating income was $1.5 million thanks to the capital gains on
disposal of property and investment of PerfectPairs.
- Net income was $1 million
attributable to the gains on disposal of property and investment,
and an increase on the operating revenues. It was up by 112%.
- Cash and marketable securities-current in the first quarter
accounted for $72.5 million, slightly
increased by 1.5% from $71.4 million
in the fourth quarter of 2015 resulting from the disposal of
property and investment of PerfectPairs.
Cash and Strategic Investment
GigaMedia maintained its solid financial position with cash and
cash equivalents, marketable securities-current and restricted cash
accounted for $73.5 million as of
March 31, 2016, or approximately
$6.65 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May
6, 2016. 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 2015 Annual
Report on Form 20-F filed with the U.S.
Securities and Exchange Commission as referenced
below, actual results may differ materially.
The mobile gaming business has been on the track since the
fourth quarter of 2015, and in this quarter, the Company continued
bringing in revenue and achieved break even. The Company has met
the expectation on the cost reduction and margin improvement. In
the upcoming quarters, new licensed games will be published, and
the Company hopes to see the same or better performances as
"Yume100" by generate stable revenues and creating margin.
With regards to social casino game platform, the revenues grew
16% from $0.75 million to
$0.88 million.
As for computing business, the Company is currently
restructuring the business plan. The Company is eager to combine
cloud and gaming business to increase the probability for
success.
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.
Q&A
For Q&A regarding the first quarter 2016 performance upon
the release, investors may send the questions via email to
IR@gigamedia.com.tw, and the responses will be replied
individually.
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 2016 and its
other filings with the United States Securities and Exchange
Commission.
For further information contact:
Annie Sun
Investor Relations Department
Country/City Code 8862 Tel: 2656-8096
IR@gigamedia.com.tw
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
3/31/2016
|
|
12/31/2015
|
|
3/31/2015
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
2,387,356
|
|
2,151,598
|
|
2,718,393
|
Other
revenues
|
|
26,619
|
|
204,215
|
|
443,692
|
|
|
2,413,975
|
|
2,355,813
|
|
3,162,085
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues
|
|
1,015,753
|
|
1,043,327
|
|
1,966,164
|
Cost of other
revenues
|
|
27,815
|
|
307,688
|
|
457,520
|
|
|
1,043,568
|
|
1,351,015
|
|
2,423,684
|
|
|
|
|
|
|
|
Gross
profit
|
|
1,370,407
|
|
1,004,798
|
|
738,401
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
127,976
|
|
190,547
|
|
181,708
|
Selling and marketing
expenses
|
|
789,082
|
|
2,057,035
|
|
2,687,116
|
General and
administrative expenses
|
|
935,803
|
|
1,212,800
|
|
1,285,835
|
Impairment
losses
|
|
0
|
|
3,082,171
|
|
0
|
Other
|
|
0
|
|
2,000,000
|
|
0
|
|
|
1,852,861
|
|
8,542,553
|
|
4,154,659
|
|
|
|
|
|
|
|
Loss from
operations
|
|
(482,454)
|
|
(7,537,755)
|
|
(3,416,258)
|
|
|
|
|
|
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
Interest
income
|
|
67,383
|
|
62,201
|
|
102,529
|
(Loss) gain on sales
of marketable securities
|
|
0
|
|
(81,744)
|
|
9,473,063
|
Interest
expense
|
|
(27,589)
|
|
(27,413)
|
|
(82,113)
|
Foreign exchange loss
- net
|
|
(69,819)
|
|
(17,113)
|
|
(16,242)
|
Gain on disposal of
property, plant and equipment
|
|
773,981
|
|
90
|
|
0
|
Equity in net (loss)
earnings on equity method investments
|
|
(20,141)
|
|
(47,110)
|
|
40,100
|
Changes in the fair
value of an instrument recognized at fair value
|
|
0
|
|
81,630
|
|
(951,660)
|
Gain (loss) on
disposal of investments
|
|
805,043
|
|
(365)
|
|
0
|
Impairment loss on
marketable securities and investments
|
|
0
|
|
(1,289,779)
|
|
0
|
Other
|
|
13,122
|
|
(100,404)
|
|
18,373
|
|
|
1,541,980
|
|
(1,420,007)
|
|
8,584,050
|
|
|
|
|
|
|
|
Income (Loss) from
continuing operations before income taxes
|
|
1,059,526
|
|
(8,957,762)
|
|
5,167,792
|
Income tax (expense)
benefit
|
|
(456)
|
|
400,866
|
|
13,351
|
|
|
|
|
|
|
|
Income (Loss) from
continuing operations
|
|
1,059,070
|
|
(8,556,896)
|
|
5,181,143
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
1,059,070
|
|
(8,556,896)
|
|
5,181,143
|
Less: Net (income)
loss attributable to noncontrolling interest
|
|
0
|
|
(445)
|
|
58,130
|
|
|
|
|
|
|
|
Net income (loss)
attributable to shareholders of GigaMedia
|
|
1,059,070
|
|
(8,557,341)
|
|
5,239,273
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (Loss) per
share attributable to GigaMedia
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
Income (Loss) from
continuing operations
|
|
0.10
|
|
(0.77)
|
|
0.47
|
Loss from
discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
0.10
|
|
(0.77)
|
|
0.47
|
Diluted:
|
|
|
|
|
|
|
Income (Loss) from
continuing operations
|
|
0.10
|
|
(0.77)
|
|
0.47
|
Loss from
discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
0.10
|
|
(0.77)
|
|
0.47
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
Basic
|
|
11,052,235
|
|
11,052,332
|
|
11,052,332
|
Diluted
|
|
11,052,235
|
|
11,052,332
|
|
11,052,385
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
3/31/2016
|
|
12/31/2015
|
|
3/31/2015
|
|
|
unaudited
|
|
audited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
72,502,287
|
|
71,432,293
|
|
53,856,429
|
Marketable securities
- current
|
|
3,830
|
|
3,830
|
|
21,718,274
|
Accounts receivable -
net
|
|
1,021,785
|
|
1,246,371
|
|
2,031,966
|
Prepaid
expenses
|
|
519,294
|
|
545,200
|
|
671,116
|
Restricted
cash
|
|
1,004,110
|
|
1,000,000
|
|
9,034,062
|
Other
receivables
|
|
130,566
|
|
45,971
|
|
3,105,223
|
Other current
assets
|
|
256,534
|
|
225,086
|
|
490,835
|
Total current
assets
|
|
75,438,406
|
|
74,498,751
|
|
90,907,905
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
0
|
|
0
|
|
4,744,000
|
Investments
|
|
4,505,271
|
|
4,523,940
|
|
5,724,346
|
Property, plant &
equipment - net
|
|
221,564
|
|
1,390,711
|
|
1,719,799
|
Intangible assets -
net
|
|
78,163
|
|
87,710
|
|
263,811
|
Prepaid licensing and
royalty fees
|
|
548,512
|
|
238,611
|
|
5,144,947
|
Other
assets
|
|
340,926
|
|
455,216
|
|
356,274
|
Total
assets
|
|
81,132,842
|
|
81,194,939
|
|
108,861,082
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Short-term
borrowings
|
|
6,214,075
|
|
6,092,917
|
|
19,808,307
|
Accounts
payable
|
|
349,997
|
|
319,601
|
|
652,708
|
Accrued
compensation
|
|
250,009
|
|
759,260
|
|
363,480
|
Accrued
expenses
|
|
2,187,903
|
|
3,036,636
|
|
3,439,764
|
Unearned
revenue
|
|
1,740,838
|
|
1,750,253
|
|
1,947,176
|
Other current
liabilities
|
|
1,747,669
|
|
1,523,023
|
|
1,985,012
|
Total current
liabilities
|
|
12,490,491
|
|
13,481,690
|
|
28,196,447
|
Other
liabilities
|
|
1,927,703
|
|
1,722,190
|
|
1,935,620
|
Total
liabilities
|
|
14,418,194
|
|
15,203,880
|
|
30,132,067
|
GigaMedia's
shareholders' equity
|
|
66,714,648
|
|
65,991,059
|
|
78,776,989
|
Noncontrolling
interest
|
|
0
|
|
0
|
|
(47,974)
|
Total
equity
|
|
66,714,648
|
|
65,991,059
|
|
78,729,015
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
81,132,842
|
|
81,194,939
|
|
108,861,082
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
3/31/2016
|
|
12/31/2015
|
|
3/31/2015
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net (Loss) Income to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (loss) income
attributable to GigaMedia
|
|
1,059,070
|
|
(8,557,341)
|
|
5,239,273
|
Depreciation
|
|
37,711
|
|
66,455
|
|
74,212
|
Amortization
|
|
22,860
|
|
56,793
|
|
55,316
|
Interest
income
|
|
(67,383)
|
|
(62,201)
|
|
(102,529)
|
Interest
expense
|
|
27,589
|
|
27,418
|
|
82,102
|
Income tax (benefit)
expense
|
|
456
|
|
(400,866)
|
|
(13,351)
|
EBITDA
|
|
1,080,303
|
|
(8,869,742)
|
|
5,335,023
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2016-financial-results-300264305.html
SOURCE GigaMedia