TAIPEI, Taiwan, May 8,
2017 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today
announced its first-quarter 2017 unaudited financial results.
Comments from Management
In the first quarter of 2017, the gaming revenue reached a 103%
increase which led our gross profit to grow by 133%
quarter-on-quarter. Comparing with the same quarter last year,
there were also 72% and 67% increases on gaming revenue and gross
profit, respectively.
The new mobile game Dragon, launched in mid-December 2016, has started to show its return
in this quarter and benefit the Company significantly.
Dragon's total revenue in the first quarter amounted to
$2.3 million. Management is glad to
see the great performance of our new licensed game, and expect to
see it having a long-term profitability.
Nevertheless, Management looks forward to maintaining a stable
and increasing level of profitability by introducing more quality
games in the coming quarters.
First Quarter Overview
- Operating revenue reached a triple-digit growth rate of 103%
in quarter-on-quarter comparison.
- Gross profit over $2 million,
up 133% from the fourth quarter and up 67% from the same period the
year before.
- Loss from operations decreased significantly from a loss of
$4.4 million to a loss of
$0.4 million
quarter-on-quarter.
- Net loss also decreased remarkably from a loss of
$2.8 million to a loss of
$0.8 million
quarter-on-quarter.
- Total assets remained
$70 million
quarter-on-quarter.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games.
GigaMedia's online games business FunTown develops and operates a
suite of games in Taiwan and
Hong Kong, with focus on
browser/mobile games and social casino games. Unaudited
consolidated results of GigaMedia are summarized in the table
below.
For the First Quarter
GIGAMEDIA 1Q17
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
1Q17
|
|
|
4Q16
|
|
|
Change
(%)
|
|
|
1Q17
|
|
|
1Q16
|
|
|
Change
(%)
|
|
Revenues
|
|
|
4,147
|
|
|
|
2,038
|
|
|
|
103.5
|
%
|
|
|
4,147
|
|
|
|
2,414
|
|
|
|
71.8
|
%
|
Gross
Profit
|
|
|
2,282
|
|
|
|
981
|
|
|
|
132.6
|
%
|
|
|
2,282
|
|
|
|
1,370
|
|
|
|
66.6
|
%
|
Loss from
Operations
|
|
|
(429)
|
|
|
|
(4,422)
|
|
|
|
90.3
|
%
|
|
|
(429)
|
|
|
|
(482)
|
|
|
|
11.0
|
%
|
Net Income (Loss)
Attributable to GigaMedia
|
|
|
(760)
|
|
|
|
(2,807)
|
|
|
|
72.9
|
%
|
|
|
(760)
|
|
|
|
1,059
|
|
|
|
(171.8)
|
%
|
Net Income (Loss)
Per Share Attributable to
GigaMedia, Diluted
|
|
|
(0.07)
|
|
|
|
(0.25)
|
|
|
|
72.0
|
%
|
|
|
(0.07)
|
|
|
|
0.10
|
|
|
|
(170.0)
|
%
|
EBITDA
(A)
|
|
|
(821)
|
|
|
|
(3,948)
|
|
|
|
79.2
|
%
|
|
|
(821)
|
|
|
|
1,080
|
|
|
|
(176.0)
|
%
|
Cash and
Marketable Securities-Current
|
|
|
65,354
|
|
|
|
65,713
|
|
|
|
(0.5)
|
%
|
|
|
65,354
|
|
|
|
72,506
|
|
|
|
(9.9)
|
%
|
(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 2017 increased
more than 100% quarter-on-quarter to $4.1
million from $2 million in the
fourth quarter of 2016, and from $2.4
million in the first quarter of 2016, representing a 72%
year-over-year. The quarter-on-quarter and year-over-year increase
reflected the growth of the new licensed game launched in
December 2016, and the total revenues
of this quarter were mainly from licensed mobile games
Dragon, Yume100 and casual games in Taiwan.
- Consolidated gross profit increased 133% and 67%
quarter-on-quarter and year-over-year respectively.
- Consolidated operating expenses were $2.7 million in the first quarter of 2017. A
decrease of 50% quarter-on-quarter and an increase of 46%
year-over-over. The changes were resulting from the selling and
marketing activities on licensed games.
- Loss from operation of the first quarter of 2017 was down to
$0.4 million, a decrease of
approximately $4 million from last
quarter. An 11% decrease of loss was also seen in year-over-year
comparison.
- Net loss of the first quarter of 2017 was of $0.8 million, a decrease of $2 million from the loss of $2.8 million of the fourth quarter of 2016.
- Cash and marketable securities-current at the first quarter-end
of 2017 accounted for $65.4 million
which remains approximately the same as the fourth quarter-end of
2016.
Financial Position
As of March 31, 2017, GigaMedia
had $65.9 million in cash, restricted
cash and marketable securities-current, approximately $6 per share, compared to $73.5 million at the end of the first quarter of
2016. The decrease mostly reflected the net cash used in operating
activities. Short-term debt was $2.6
million at the end of the first quarter of 2017.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May 8,
2017. 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 2016 Annual Report on Form 20-F filed with
the U.S. Securities and Exchange Commission as referenced below,
actual results may differ materially.
Yume 100, GigaMedia's first female-oriented game, has
received favorable comments since its launch and its revenue
accounted for 42% of the total revenue in 2016. More and more
researches indicate that females start to game more than males and
there are lots of games now aiming female leads in hopes of getting
into a female market demographic. This year, we will keep looking
for more female-oriented games in order to explore more potential
gamers, enhance revenue growth momentum while keep a healthy and
steady gross margin. With the new Chief Executive Officer
James Huang's specialties in
investment, GigaMedia also looks forward to potential opportunities
to expand the business.
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 2017 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 game products. 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 2017 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
|
annie.sun@gigamedia.com.tw
|
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
Three months
ended
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
3/31/2016
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
|
4,147,068
|
|
|
|
2,038,051
|
|
|
|
2,387,356
|
Other
revenues
|
|
|
-
|
|
|
|
137
|
|
|
|
26,619
|
|
|
|
4,147,068
|
|
|
|
2,038,188
|
|
|
|
2,413,975
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues
|
|
|
1,864,588
|
|
|
|
1,057,020
|
|
|
|
1,015,753
|
Cost of other
revenues
|
|
|
-
|
|
|
|
143
|
|
|
|
27,815
|
|
|
|
1,864,588
|
|
|
|
1,057,163
|
|
|
|
1,043,568
|
Gross
profit
|
|
|
2,282,480
|
|
|
|
981,025
|
|
|
|
1,370,407
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
276,697
|
|
|
|
330,895
|
|
|
|
127,976
|
Selling and marketing
expenses
|
|
|
1,470,628
|
|
|
|
2,311,585
|
|
|
|
789,082
|
General and
administrative expenses
|
|
|
964,524
|
|
|
|
846,013
|
|
|
|
935,803
|
Other
|
|
|
-
|
|
|
|
1,914,565
|
|
|
|
-
|
|
|
|
2,711,849
|
|
|
|
5,403,058
|
|
|
|
1,852,861
|
Loss from
operations
|
|
|
(429,369)
|
|
|
|
(4,422,033)
|
|
|
|
(482,454)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
77,174
|
|
|
|
84,383
|
|
|
|
67,383
|
Interest
expense
|
|
|
(11,730)
|
|
|
|
(11,831)
|
|
|
|
(27,589)
|
Foreign exchange
(loss) gain - net
|
|
|
(377,450)
|
|
|
|
56,878
|
|
|
|
(69,819)
|
(Loss) Gain on
disposal of property, plant and equipment
|
|
|
-
|
|
|
|
(39,709)
|
|
|
|
773,981
|
Equity in net
earnings (loss) on equity method investments
|
|
|
(23,265)
|
|
|
|
264,979
|
|
|
|
(20,141)
|
Gain on disposal of
investments
|
|
|
-
|
|
|
|
25,894
|
|
|
|
805,043
|
Other
|
|
|
5,501
|
|
|
|
88,655
|
|
|
|
13,122
|
|
|
|
(329,770)
|
|
|
|
469,249
|
|
|
|
1,541,980
|
(Loss) Income from
continuing operations before income taxes
|
|
|
(759,139)
|
|
|
|
(3,952,784)
|
|
|
|
1,059,526
|
Income tax benefit
(expense)
|
|
|
(456)
|
|
|
|
1,146,193
|
|
|
|
(456)
|
(Loss) Income from
continuing operations
|
|
|
(759,595)
|
|
|
|
(2,806,591)
|
|
|
|
1,059,070
|
Net (loss)
income
|
|
|
(759,595)
|
|
|
|
(2,806,591)
|
|
|
|
1,509,070
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Net (loss) income
attributable to shareholders of GigaMedia
|
|
|
(759,595)
|
|
|
|
(2,806,591)
|
|
|
|
1,509,070
|
(Loss) Earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations
|
|
|
(0.07)
|
|
|
|
(0.25)
|
|
|
|
0.10
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
(0.07)
|
|
|
|
(0.25)
|
|
|
|
0.10
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations
|
|
|
(0.07)
|
|
|
|
(0.25)
|
|
|
|
0.10
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
(0.07)
|
|
|
|
(0.25)
|
|
|
|
0.10
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,332
|
Diluted
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,235
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
3/31/2016
|
|
|
unaudited
|
|
|
audited
|
|
|
unaudited
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
65,351,207
|
|
|
|
65,710,816
|
|
|
|
72,502,287
|
Marketable securities
- current
|
|
|
2,617
|
|
|
|
2,617
|
|
|
|
3,830
|
Accounts receivable -
net
|
|
|
1,247,420
|
|
|
|
870,785
|
|
|
|
1,021,785
|
Prepaid
expenses
|
|
|
493,229
|
|
|
|
547,818
|
|
|
|
519,294
|
Restricted
cash
|
|
|
500,000
|
|
|
|
500,000
|
|
|
|
1,004,110
|
Other
receivables
|
|
|
949,225
|
|
|
|
1,099,183
|
|
|
|
130,566
|
Other current
assets
|
|
|
176,686
|
|
|
|
151,358
|
|
|
|
256,534
|
Total current
assets
|
|
|
68,720,384
|
|
|
|
68,882,577
|
|
|
|
75,438,406
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
52,790
|
|
|
|
72,052
|
|
|
|
4,505,271
|
Property, plant &
equipment - net
|
|
|
22,434
|
|
|
|
6,605
|
|
|
|
221,564
|
Intangible assets -
net
|
|
|
4,824
|
|
|
|
-
|
|
|
|
78,163
|
Prepaid licensing and
royalty fees
|
|
|
904,404
|
|
|
|
1,020,034
|
|
|
|
548,512
|
Other
assets
|
|
|
367,749
|
|
|
|
346,072
|
|
|
|
340,926
|
Total
assets
|
|
|
70,072,585
|
|
|
|
70,327,340
|
|
|
|
81,132,842
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
2,637,652
|
|
|
|
2,480,620
|
|
|
|
6,214,075
|
Accounts
payable
|
|
|
434,631
|
|
|
|
265,966
|
|
|
|
349,997
|
Accrued
compensation
|
|
|
225,287
|
|
|
|
210,083
|
|
|
|
250,009
|
Accrued
expenses
|
|
|
3,332,207
|
|
|
|
3,827,905
|
|
|
|
2,187,903
|
Unearned
revenue
|
|
|
2,150,001
|
|
|
|
1,867,623
|
|
|
|
1,740,838
|
Other current
liabilities
|
|
|
404,262
|
|
|
|
346,036
|
|
|
|
1,747,669
|
Total current
liabilities
|
|
|
9,184,040
|
|
|
|
8,998,233
|
|
|
|
12,490,491
|
Other
liabilities
|
|
|
1,671,511
|
|
|
|
1,671,511
|
|
|
|
1,927,703
|
Total
liabilities
|
|
|
10,855,551
|
|
|
|
10,669,744
|
|
|
|
14,418,194
|
GigaMedia's
shareholders' equity
|
|
|
59,217,034
|
|
|
|
59,657,596
|
|
|
|
66,714,648
|
Noncontrolling
interest
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
Total
equity
|
|
|
59,217,034
|
|
|
|
59,657,596
|
|
|
|
66,714,648
|
Total liabilities and
equity
|
|
|
70,072,585
|
|
|
|
70,327,340
|
|
|
|
81,132,842
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
|
|
|
Three months
ended
|
|
|
3/31/2017
|
|
|
12/31/2016
|
|
|
3/31/2016
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
|
(759,595)
|
|
|
|
(2,806,591)
|
|
|
|
1,059,070
|
Depreciation
|
|
|
953
|
|
|
|
50,414
|
|
|
|
37,711
|
Amortization
|
|
|
2,798
|
|
|
|
26,967
|
|
|
|
22,860
|
Interest
income
|
|
|
(77,174)
|
|
|
|
(84,383)
|
|
|
|
(67,383)
|
Interest
expense
|
|
|
11,730
|
|
|
|
11,831
|
|
|
|
27,589
|
Income tax (benefit)
expense
|
|
|
456
|
|
|
|
(1,146,193)
|
|
|
|
456
|
EBITDA
|
|
|
(820,832)
|
|
|
|
(3,947,955)
|
|
|
|
1,080,303
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2017-financial-results-300453055.html
SOURCE GigaMedia