TAIPEI, Taiwan, Aug. 5, 2016 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its unaudited financial results for
the second quarter of 2016. Gross profit increased 388%
year-over-year to $1.1 million, and
loss from operations decreased 66% year-over-year to $1.3 million.
Second Quarter Overview
- Mobile and social games continued making stable
contribution, maintained $2 million
in revenues year-over-year.
- Consolidated gross profit for the second quarter of 2016
amounted to $1.1 million, an increase
of 388% from $0.2 million a year
before.
- Consolidated loss from operations for the second quartered
of 2016 amounted to $1.3 million, a
decrease of 66% from $3.8 million a
year before.
- Consolidated general and administrative expenses continued
trending down, decreasing 20 percent quarter-on-quarter and 41
percent year-over-year.
- Low headquarters operating expenses of $0.6 million, down from $0.8 million in the first quarter of 2016,
decreased 20 percent quarter-on-quarter and 25 percent
year-over-year.
- Cash outflow from operations of approximately $1.0 million, similar to the first quarter of
2016.
- Game licensed agreement of ArcheAge was signed
in June and the first installment of initial fee revenue of
USD$250,000 will be recorded in the
third quarter of 2016.
CEO's comments
"Second quarter is commonly the low season for gaming industry
and in this quarter we put more budgets on marketing to promote our
games, especially via television advertising and offline events. We
expect our investment on advertisements can attract more players in
the upcoming summer vacation and boost the revenue," stated GigaMedia Limited Chief Executive
Officer Collin Hwang.
"Currently there are 180,000 downloads of our new game Shoumetsu
Toshi and we are happy to see this game be recommended by
App Store and Google Play.
Meanwhile, our teams are keen to ensure we are on the right track and modify marketing
plans according to players' feedbacks," GigaMedia Limited Chief Executive Officer
Collin Hwang continued.
"In order to provide the best possible gaming environment and
experiences to social games players, we are working on the
integration of our servers and databases in Hong Kong and Taiwan, and maintain high stability of our
games. Through marketing and
operational strategies, positive
growth is anticipated in the coming quarter.
"In the second half year, we will continue to make progress
improving our product pipeline, and to license in and out
good-quality games. Besides the revenue from licensing out the game
- ArcheAge, we also scheduled to launch another new game in the
next half year, continue to expand our product stream," stated GigaMedia Limited Chief Executive
Officer Collin Hwang.
Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games.
GigaMedia's online games business FunTown develops and operates a
suite of games in Taiwan and
Hong Kong, with focus on
browser/mobile games and social casino games. Unaudited
consolidated results of GigaMedia are summarized in the table
below.
For the Second Quarter
GIGAMEDIA 2Q16 UNAUDITED
CONSOLIDATED FINANCIAL
RESULTS
|
|
(unaudited, all figures
in US$ thousands, except per share
amounts)
|
|
2Q16
|
|
|
1Q16
|
|
|
Change
(%)
|
|
|
2Q16
|
|
|
2Q15
|
|
|
Change
(%)
|
|
Revenues
|
|
|
2,062
|
|
|
|
2,414
|
|
|
|
(14.6)%
|
|
|
|
2,062
|
|
|
|
2,728
|
|
|
|
(24.4)%
|
|
Gross
Profit
|
|
|
1,058
|
|
|
|
1,370
|
|
|
|
(22.8)%
|
|
|
|
1,058
|
|
|
|
217
|
|
|
|
387.6
|
%
|
Income (Loss) from
Operations
|
|
|
(1,284)
|
|
|
|
(483)
|
|
|
|
(165.8)%
|
|
|
|
(1,284)
|
|
|
|
(3,801)
|
|
|
|
66.2
|
%
|
Net Income (Loss)
Attributable to
GigaMedia
|
|
|
(2,146)
|
|
|
|
1,059
|
|
|
|
(302.6)%
|
|
|
|
(2,146)
|
|
|
|
1,377
|
|
|
|
(255.9)%
|
|
Net Income (Loss) Per
Share Attributable to
GigaMedia, Diluted
|
|
|
(0.19)
|
|
|
|
0.10
|
|
|
|
(290.0)%
|
|
|
|
(0.19)
|
|
|
|
0.12
|
|
|
|
(258.3)%
|
|
EBITDA
(A)
|
|
|
(2,144)
|
|
|
|
1,080
|
|
|
|
(298.5)%
|
|
|
|
(2,144)
|
|
|
|
1,463
|
|
|
|
(246.6)%
|
|
Cash and Marketable
Securities-Current
|
|
|
70,585
|
|
|
|
72,506
|
|
|
|
(2.7)%
|
|
|
|
70,585
|
|
|
|
68,305
|
|
|
|
3.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(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 for the second quarter of 2016 were
$2.1 million; this compared to
$2.4 million in the first quarter of
2016 and $2.7 million in the second
quarter of 2015. The quarter-on-quarter revenue decrease reflected
the low season of gaming business in Taiwan and Hong
Kong.
- Consolidated gross profit for the second quarter of 2016 was
$1.1 million; this compared to
$1.4 million in the first quarter of
2016 and $0.2 million in the second
quarter of 2015.
- Consolidated operating expenses were $2.3 million in the second quarter of 2016,
comparing with the second quarter of 2015, the expense decreased
42% from $4 million to $2.3 million, primarily due to reduced selling
and marketing expenses as well as general and administrative
expenses; about 40 percent of the expense was cut down in both
sectors.
- Consolidated loss from operations was $1.3 million in the second quarter of 2016, an
increase of $0.8 million
quarter-on-quarter mostly due to the expenses of selling and
marketing.
- Consolidated non-operating expenses/income during the second
quarter of 2016 was a loss of $0.9
million due to equity in loss earnings on the investment of
East Gate and Double2, compared to an income of $1.5 million from the disposal of property and
investment of PerfectPairs in the first quarter of 2016.
- Consolidated net income for the second quarter of 2016 was a
loss of $2.1 million, compared to an
income of $ 1.1 million in the
previous quarter and an income of $1.4
million in the second quarter of 2015.
Financial Position
As of June 30, 2016, GigaMedia had
$71.6 million in cash, restricted
cash and marketable securities-current approximately $6.48 per share, compared to $73.5 million at the end of the first quarter of
2016, which mostly reflecting the net cash used in operating
activities. Short-term debt was $5.8
million at the end of the second quarter, a decrease from
$6.2 million of last quarter was due
to the loan repayment of $0.6
million.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of August 5, 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.
As of 30 June, 2016, the new
mobile game Shoumetsu Toshi has been launched for a month; the
revenue of first month after launch was approximately $0.2 million; the average monthly revenue per
paying user was $16.11 and monthly
pay rate was about 5.6%. For Yume 100, the revenue of second
quarter 2016 was approximately $0.9
million; the average quarterly revenue per paying user was
$72.5 and quarterly pay rate was
about 8.27%, this compared to the revenue of first quarter 2016 was
approximately $1.2 million; the
average quarterly revenue per paying user was $95 and quarterly pay rate was about 5.58% in the
second quarter of 2016.
With the product exposure on television commercial and offline
events and the coming of summer vacation, we expect revenue will be
boosted in the third quarter of 2016. At the same time, the Company
aims to seek more good-quality titles and expect to launch new
games in the next half year. With regards to social casino games,
servers and databases will be integrated to maintain operational
stability and continue content optimization.
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 second 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. 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.
# # #
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
|
|
Three months
ended
|
|
|
|
6/30/2016
|
|
|
3/31/2016
|
|
|
6/30/2015
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
|
2,061,392
|
|
|
|
2,387,356
|
|
|
|
2,014,922
|
|
Other
revenues
|
|
|
283
|
|
|
|
26,619
|
|
|
|
712,646
|
|
|
|
|
2,061,675
|
|
|
|
2,413,975
|
|
|
|
2,727,568
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Asian online game
and service revenues
|
|
|
1,003,828
|
|
|
|
1,015,753
|
|
|
|
1,777,811
|
|
Cost of other
revenues
|
|
|
296
|
|
|
|
27,815
|
|
|
|
732,775
|
|
|
|
|
1,004,124
|
|
|
|
1,043,568
|
|
|
|
2,510,586
|
|
Gross
profit
|
|
|
1,057,551
|
|
|
|
1,370,407
|
|
|
|
216,982
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development and
engineering expenses
|
|
|
167,563
|
|
|
|
127,976
|
|
|
|
164,085
|
|
Selling and marketing
expenses
|
|
|
1,426,594
|
|
|
|
789,082
|
|
|
|
2,262,207
|
|
General and administrative
expenses
|
|
|
746,910
|
|
|
|
935,803
|
|
|
|
1,265,399
|
|
Other
|
|
|
--
|
|
|
|
--
|
|
|
|
326,594
|
|
|
|
|
2,341,067
|
|
|
|
1,852,861
|
|
|
|
4,018,285
|
|
Loss from
operations
|
|
|
(1,283,516)
|
|
|
|
(482,454)
|
|
|
|
(3,801,303)
|
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
80,925
|
|
|
|
67,383
|
|
|
|
106,324
|
|
Gain on sales of marketable
securities
|
|
|
--
|
|
|
|
--
|
|
|
|
4,703,500
|
|
Interest
expense
|
|
|
(25,981)
|
|
|
|
(27,589)
|
|
|
|
(48,224)
|
|
Foreign exchange (loss)
gain - net
|
|
|
(94,062)
|
|
|
|
(69,819)
|
|
|
|
(17,655)
|
|
Gain on disposal of
property, plant and
equipment
|
|
|
8,090
|
|
|
|
773,981
|
|
|
|
--
|
|
Equity in net earnings
(loss) on equity method
investments
|
|
|
(858,492)
|
|
|
|
(20,141)
|
|
|
|
22,954
|
|
Changes in the fair value
of an instrument recognized at fair
value
|
|
|
--
|
|
|
|
--
|
|
|
|
879,472
|
|
Gain on disposal of
investments
|
|
|
8,567
|
|
|
|
805,043
|
|
|
|
0
|
|
Other
|
|
|
15,237
|
|
|
|
13,122
|
|
|
|
(508,926)
|
|
|
|
|
(865,716)
|
|
|
|
1,541,980
|
|
|
|
5,137,445
|
|
(Loss) Income from
continuing operations before income
taxes
|
|
|
(2,149,232)
|
|
|
|
1,059,526
|
|
|
|
1,336,142
|
|
Income tax benefit
(expense)
|
|
|
2,961
|
|
|
|
(456)
|
|
|
|
170
|
|
(Loss) Income from
continuing operations
|
|
|
(2,146,271)
|
|
|
|
1,059,070
|
|
|
|
1,336,312
|
|
Net (loss)
income
|
|
|
(2,146,271)
|
|
|
|
1,059,070
|
|
|
|
1,336,312
|
|
Less: Net loss attributable
to noncontrolling interest
|
|
|
--
|
|
|
|
--
|
|
|
|
40,525
|
|
Net (loss) income
attributable to shareholders of
GigaMedia
|
|
|
(2,146,271)
|
|
|
|
1,059,070
|
|
|
|
1,376,837
|
|
(Loss) Earnings per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations
|
|
|
(0.19)
|
|
|
|
0.10
|
|
|
|
0.12
|
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
|
(0.19)
|
|
|
|
0.10
|
|
|
|
0.12
|
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations
|
|
|
(0.19)
|
|
|
|
0.10
|
|
|
|
0.12
|
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
|
(0.19)
|
|
|
|
0.10
|
|
|
|
0.12
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,332
|
|
Diluted
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,407
|
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
6/30/2016
|
|
|
3/31/2016
|
|
|
6/30/2015
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
70,581,209
|
|
|
|
72,502,287
|
|
|
|
68,299,828
|
|
Marketable securities -
current
|
|
|
3,830
|
|
|
|
3,830
|
|
|
|
5,307
|
|
Accounts receivable -
net
|
|
|
820,603
|
|
|
|
1,021,785
|
|
|
|
1,675,561
|
|
Prepaid
expenses
|
|
|
488,851
|
|
|
|
519,294
|
|
|
|
1,019,249
|
|
Restricted
cash
|
|
|
1,004,110
|
|
|
|
1,004,110
|
|
|
|
1,000,000
|
|
Other
receivables
|
|
|
30,059
|
|
|
|
130,566
|
|
|
|
186,994
|
|
Other current
assets
|
|
|
192,924
|
|
|
|
256,534
|
|
|
|
273,500
|
|
Total current
assets
|
|
|
73,121,586
|
|
|
|
75,438,406
|
|
|
|
72,460,439
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
|
--
|
|
|
|
--
|
|
|
|
4,744,000
|
|
Investments
|
|
|
3,720,766
|
|
|
|
4,505,271
|
|
|
|
6,740,252
|
|
Property, plant &
equipment - net
|
|
|
400,831
|
|
|
|
221,564
|
|
|
|
1,675,312
|
|
Intangible assets -
net
|
|
|
111,064
|
|
|
|
78,163
|
|
|
|
206,780
|
|
Prepaid licensing and
royalty fees
|
|
|
912,055
|
|
|
|
548,512
|
|
|
|
5,026,779
|
|
Other
assets
|
|
|
414,857
|
|
|
|
340,926
|
|
|
|
369,685
|
|
Total
assets
|
|
|
78,681,159
|
|
|
|
81,132,842
|
|
|
|
91,223,247
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
5,577,072
|
|
|
|
6,214,075
|
|
|
|
4,536,617
|
|
Accounts
payable
|
|
|
272,203
|
|
|
|
349,997
|
|
|
|
557,599
|
|
Accrued
compensation
|
|
|
392,706
|
|
|
|
250,009
|
|
|
|
464,384
|
|
Accrued
expenses
|
|
|
2,560,114
|
|
|
|
2,187,903
|
|
|
|
3,739,583
|
|
Unearned
revenue
|
|
|
1,661,640
|
|
|
|
1,740,838
|
|
|
|
1,673,170
|
|
Other current
liabilities
|
|
|
1,614,011
|
|
|
|
1,747,669
|
|
|
|
1,800,582
|
|
Total current
liabilities
|
|
|
12,077,746
|
|
|
|
12,490,491
|
|
|
|
12,771,935
|
|
Other
liabilities
|
|
|
1,712,015
|
|
|
|
1,927,703
|
|
|
|
1,933,173
|
|
Total
liabilities
|
|
|
13,789,761
|
|
|
|
14,418,194
|
|
|
|
14,705,108
|
|
GigaMedia's shareholders'
equity
|
|
|
64,891,398
|
|
|
|
66,714,648
|
|
|
|
76,607,057
|
|
Noncontrolling
interest
|
|
|
--
|
|
|
|
--
|
|
|
|
(88,918)
|
|
Total
equity
|
|
|
64,891,398
|
|
|
|
66,714,648
|
|
|
|
76,518,139
|
|
Total liabilities and
equity
|
|
|
78,681,159
|
|
|
|
81,132,842
|
|
|
|
91,223,247
|
|
GIGAMEDIA
LIMITED
|
Reconciliations of Non-GAAP Results of
Operations
|
|
|
|
Three months
ended
|
|
|
|
6/30/2016
|
|
|
3/31/2016
|
|
|
6/30/2015
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of Net
Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
|
(2,146,271)
|
|
|
|
1,059,070
|
|
|
|
1,376,837
|
|
Depreciation
|
|
|
29,306
|
|
|
|
37,711
|
|
|
|
80,296
|
|
Amortization
|
|
|
30,947
|
|
|
|
22,860
|
|
|
|
64,129
|
|
Interest
income
|
|
|
(80,925)
|
|
|
|
(67,383)
|
|
|
|
(106,302)
|
|
Interest
expense
|
|
|
25,981
|
|
|
|
27,589
|
|
|
|
47,975
|
|
Income tax (benefit)
expense
|
|
|
(2,961)
|
|
|
|
456
|
|
|
|
(170)
|
|
EBITDA
|
|
|
(2,143,923)
|
|
|
|
1,080,303
|
|
|
|
1,462,765
|
|
For further information contact:
Annie Sun
Investor Relations Department
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-second-quarter-2016-financial-results-300309828.html
SOURCE GigaMedia