TAIPEI, Taiwan, Oct. 31, 2017 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its third-quarter 2017 unaudited
financial results.
Comments from Management
In the third quarter of 2017, a good progress in curbing net
cash outflow can be seen in GigaMedia. As we have switched our
focus to developing and cultivating long-term relationship with
customers, even with no new game published in the past three
quarters, stable revenue generated from the long-lifecycle games
and the effort we put in to optimize the marketing cost in
acquiring new users had led our game division reaching the
break-even point.
Strategies of focusing on long-lifespan mobile games and
executing effective resource planning and management help the
Company to increase gamers' satisfaction and stickiness. At the
same time, we add new contents onto our social casino game platform
to boost gamers' retention and return rate.
To have reasonable margins and positive cash flow in game sector
also helps GigaMedia to bring in profit to the Company and
Shareholders.
Third Quarter Overview
- Gross Profit increases 2.32% to approximately $1.5 million compared to the prior year third
quarter.
- Operating expenses decreased 28.69% to $1.8 million compared to $2.5 million for comparable prior quarter
period.
- Total current assets were $65.9
million and the total assets were $66.9 million as of September 30, 2017. The total liabilities
decreased $3.1 million
quarter-on-quarter from $9.9 million to $6.8
million.
- The net asset value remained $5.4
per share.
- Short-term debt came to zero, compared to $2.6 million as of both the end of second quarter
of 2017 and the third quarter of 2016.
- Adjusted EBITDA for the nine months ended September 30, 2017 was minus $0.1 million, compared to adjusted EBITA of minus
$3.2 million in the same period last
year.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games.
GigaMedia's online games business FunTown develops and operates a
suite of games in Taiwan and
Hong Kong, with focus on
browser/mobile games and social casino games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the third Quarter
GIGAMEDIA3Q17
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all figures in US$ thousands, except per share
amounts)
|
|
3Q17
|
|
|
2Q17
|
|
|
Change (%)
|
|
|
3Q17
|
|
|
3Q16
|
|
|
Change
(%)
|
Revenues
|
|
2,304
|
|
|
3,117
|
|
|
-26.08%
|
|
|
2,304
|
|
|
2,457
|
|
|
-6.23%
|
Gross
Profit
|
|
1,457
|
|
|
1,751
|
|
|
-16.79%
|
|
|
1,457
|
|
|
1,424
|
|
|
2.32%
|
Loss from
Operations
|
|
(315)
|
|
|
(734)
|
|
|
NM
|
|
|
(315)
|
|
|
(943)
|
|
|
NM
|
Net Income (Loss)
Attributable to GigaMedia
|
|
(129)
|
|
|
904
|
|
|
NM
|
|
|
(129)
|
|
|
(2,173)
|
|
|
NM
|
Net Income (Loss) Per Share Attributable to
GigaMedia, Diluted
|
|
(0.01)
|
|
|
0.08
|
|
|
NM
|
|
|
(0.01)
|
|
|
(0.20)
|
|
|
NM
|
EBITDA
(A)
|
|
(305)
|
|
|
812
|
|
|
NM
|
|
|
(305)
|
|
|
(2,152)
|
|
|
NM
|
Cash and
Marketable Securities-Current
|
|
63,770
|
|
|
66,452
|
|
|
-4.04%
|
|
|
63,770
|
|
|
67,730
|
|
|
-5.85%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM= Not
Meaningful
(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.)
|
Third-Quarter Financial Results
- Consolidated revenues for the third quarter of 2017 decreased
26.08% quarter-on-quarter from $3.1
million to $2.3 million and
slightly decreased year-over-year from $2.5
million to $2.3 million. For
the nine months ended September 30,
2017, revenue was $9.6
million, compared to $6.9
million in the same period last year.
- Consolidated gross profit decreased 16.79% quarter-on-quarter
from $1.8 million to $1.5 million and increased 2.33% year-over-year
from $1.4 million to $1.5 million. Gross profit for the nine months
ended September 30, 2017 was
$5.5 million, compared to
$3.9 million in the same period last
year.
- Consolidated operating expenses were $1.8 million in the third quarter of 2017. A
decrease of $0.7 million which is
about 28.69% from the second quarter of 2017 which reflected the
effective budgeting and cost management on both selling and
marketing expenses and general and administrative
expenses.
The Company has saved $1.2 million in
total on online game costs and expenses since the last quarter,
from $3.2 million to $2.1
million.
- Consolidated loss from operation of the third quarter of 2017
was $0.3 million, and the decreased
loss reflected low operating costs and expenses.
Game division reached break-even point. Income from operation in
the third quarter of 2017 was $0.2
million, comparing to a loss of $0.1
million of the second quarter of 2017.
Consolidated loss from operation for the nine months ended
September 30, 2017 was $1.5 million, compared to $2.7 million in the same period last year.
- Consolidated net income of the third quarter of 2017 was a loss
of $0.1 million compared to a loss of
$2.2 million in the third quarter of
2016.
For the nine months ended September 30,
2017, net income was $15
thousands, compared to a loss of $3.3
million in the same period last year. And net income per
diluted share for the nine months ended September 30, 2017 was $0.01, compared to net income per diluted share
of minus $0.29 in the same period
last year.
- Cash and marketable securities-current in the third quarter of
2017 accounted for $63.8 million
which decreased 4.04% from $66.4
million in the second quarter of 2017.
Financial Position
GigaMedia maintained its solid financial position with cash and
cash equivalents, marketable securities-current and restricted cash
accounted for $64.3 million as of
September 30, 2017, or $5.8 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of October
31, 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.
GigaMedia CEO James Huang stated:
"We are working on content enrichment and platform optimization for
our social casino games to maintain stable cash flow. Two to three
female-oriented games are scheduled to be released in the next
twelve months. This will also build a stronger revenue stream for
GigaMedia.
With spend smart approach, stable revenues and improved cash
flow, we are confident that we are on the right track to deliver
resilient financial performance. We continue reaching out to a wide
range of business targets and having full studies on them, and we
will carefully select investment objects with comprehensive
consideration."
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 third 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 games. 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.
(Tables to follow)
GIGAMEDIA
LIMITED
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
9/30/2017
|
|
|
06/30/2017
|
|
|
9/30/2016
|
|
|
9/30/2017
|
|
|
09/30/2016
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
|
2,304,287
|
|
|
|
3,117,035
|
|
|
|
2,457,165
|
|
|
|
9,568,390
|
|
|
|
6,905,913
|
Other
revenues
|
|
|
--
|
|
|
|
--
|
|
|
|
302
|
|
|
|
--
|
|
|
|
27,204
|
|
|
|
2,304,287
|
|
|
|
3,117,035
|
|
|
|
2,457,467
|
|
|
|
9,568,390
|
|
|
|
6,933,117
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues
|
|
|
846,905
|
|
|
|
1,366,009
|
|
|
|
1,032,941
|
|
|
|
4,077,502
|
|
|
|
3,052,522
|
Cost of other
revenues
|
|
|
--
|
|
|
|
--
|
|
|
|
315
|
|
|
|
--
|
|
|
|
28,426
|
|
|
|
846,905
|
|
|
|
1,366,009
|
|
|
|
1,033,256
|
|
|
|
4,077,502
|
|
|
|
3,080,948
|
Gross
profit
|
|
|
1,457,382
|
|
|
|
1,751,026
|
|
|
|
1,424,211
|
|
|
|
5,490,888
|
|
|
|
3,852,169
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
269,539
|
|
|
|
288,371
|
|
|
|
418,748
|
|
|
|
834,607
|
|
|
|
714,287
|
Selling and marketing
expenses
|
|
|
601,638
|
|
|
|
1,174,915
|
|
|
|
985,433
|
|
|
|
3,247,181
|
|
|
|
3,201,110
|
General and
administrative expenses
|
|
|
900,913
|
|
|
|
1,021,624
|
|
|
|
962,576
|
|
|
|
2,887,061
|
|
|
|
2,645,288
|
Other
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,772,090
|
|
|
|
2,484,910
|
|
|
|
2,366,757
|
|
|
|
6,968,849
|
|
|
|
6,560,685
|
Loss from
operations
|
|
|
(314,708)
|
|
|
|
(733,884)
|
|
|
|
(942,546)
|
|
|
|
(1,477,961)
|
|
|
|
(2,708,516)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
208,696
|
|
|
|
108,580
|
|
|
|
69,823
|
|
|
|
394,449
|
|
|
|
218,132
|
Interest
expense
|
|
|
(9,985)
|
|
|
|
(11,717)
|
|
|
|
(16,045)
|
|
|
|
(33,432)
|
|
|
|
(69,615)
|
Foreign exchange
(loss) gain - net
|
|
|
(13,239)
|
|
|
|
(74,523)
|
|
|
|
(193,649)
|
|
|
|
(465,212)
|
|
|
|
(357,529)
|
(Loss) Gain on
disposal of property, plant and equipment
|
|
|
(2)
|
|
|
|
965
|
|
|
|
8,771
|
|
|
|
963
|
|
|
|
790,842
|
Equity in net loss on
equity method investments
|
|
|
(105)
|
|
|
|
(311)
|
|
|
|
(1,117,217)
|
|
|
|
(23,682)
|
|
|
|
(1,995,851)
|
Gain on disposal of
investments
|
|
|
--
|
|
|
|
--
|
|
|
|
9,125
|
|
|
|
--
|
|
|
|
822,735
|
Impairment loss on marketable securities and investments
|
|
|
(233
|
|
|
|
(52,242)
|
|
|
|
--
|
|
|
|
(52,475)
|
|
|
|
--
|
Other -
net
|
|
|
860
|
|
|
|
1,667,257
|
|
|
|
8,518
|
|
|
|
1,673,620
|
|
|
|
36,876
|
|
|
|
185,992
|
|
|
|
1,638,009
|
|
|
|
(1,230,674)
|
|
|
|
1,494,232
|
|
|
|
(554,410)
|
(Loss) Income from
continuing operations before income taxes
|
|
|
(128,716)
|
|
|
|
904,125
|
|
|
|
(2,173,220)
|
|
|
|
16,271
|
|
|
|
(3,262,926)
|
Income tax benefit
(expense)
|
|
|
(7)
|
|
|
|
--
|
|
|
|
25
|
|
|
|
(463)
|
|
|
|
2,530
|
(Loss) Income from
continuing operations
|
|
|
(128,723)
|
|
|
|
904,125
|
|
|
|
(2,173,195)
|
|
|
|
15,808
|
|
|
|
(3,260,396)
|
Net (loss)
income
|
|
|
(128,723)
|
|
|
|
904,125
|
|
|
|
(2,173,195)
|
|
|
|
15,080
|
|
|
|
(3,260,396)
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
Net (loss) income
attributable to shareholders of GigaMedia
|
|
|
(128,723)
|
|
|
|
904,125
|
|
|
|
(2,173,195)
|
|
|
|
15,080
|
|
|
|
(3,260,396)
|
(Loss) Earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations
|
|
|
(0.01)
|
|
|
|
0.08
|
|
|
|
(0.20)
|
|
|
|
0.01
|
|
|
|
(0.29)
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
(0.01)
|
|
|
|
0.08
|
|
|
|
(0.20)
|
|
|
|
0.01
|
|
|
|
(0.29)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) Income from
continuing operations
|
|
|
(0.01)
|
|
|
|
0.08
|
|
|
|
(0.20)
|
|
|
|
0.01
|
|
|
|
(0.29)
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
(0.01)
|
|
|
|
0.08
|
|
|
|
(0.20)
|
|
|
|
0.01
|
|
|
|
(0.29)
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,235
|
Diluted
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
11,052,235
|
GIGAMEDIA
LIMITED
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
9/30/2016
|
|
|
unaudited
|
|
|
audited
|
|
|
unaudited
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
63,767,004
|
|
|
|
66,449,544
|
|
|
|
67,726,267
|
Marketable securities
- current
|
|
|
2,617
|
|
|
|
2,617
|
|
|
|
3,830
|
Accounts receivable -
net
|
|
|
699,407
|
|
|
|
724,508
|
|
|
|
1,245,375
|
Prepaid
expenses
|
|
|
310,286
|
|
|
|
510,432
|
|
|
|
445,515
|
Restricted
cash
|
|
|
503,640
|
|
|
|
503,640
|
|
|
|
1,004,110
|
Other
receivables
|
|
|
495,685
|
|
|
|
913,366
|
|
|
|
46,870
|
Other current
assets
|
|
|
155,240
|
|
|
|
146,242
|
|
|
|
188,209
|
Total current
assets
|
|
|
65,933,879
|
|
|
|
69,250,349
|
|
|
|
70,660,176
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
|
|
|
|
|
|
|
|
|
|
Investments
|
|
|
--
|
|
|
|
--
|
|
|
|
1,273,018
|
Property, plant &
equipment - net
|
|
|
135,287
|
|
|
|
29,445
|
|
|
|
579,459
|
Intangible assets -
net
|
|
|
2,812
|
|
|
|
4,848
|
|
|
|
83,623
|
Prepaid licensing and
royalty fees
|
|
|
516,477
|
|
|
|
389,886
|
|
|
|
1,536,574
|
Other
assets
|
|
|
325,763
|
|
|
|
384,468
|
|
|
|
426,742
|
Total
assets
|
|
|
66,914,218
|
|
|
|
70,058,996
|
|
|
|
74,559,592
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
--
|
|
|
|
2,629,849
|
|
|
|
2,551,020
|
Accounts
payable
|
|
|
269,316
|
|
|
|
291,215
|
|
|
|
409,812
|
Accrued
compensation
|
|
|
565,446
|
|
|
|
375,393
|
|
|
|
615,666
|
Accrued
expenses
|
|
|
2,037,396
|
|
|
|
2,628,643
|
|
|
|
2,456,071
|
Unearned
revenue
|
|
|
2,068,262
|
|
|
|
2,111,474
|
|
|
|
2,091,888
|
Other current
liabilities
|
|
|
223,173
|
|
|
|
169,352
|
|
|
|
1,761,767
|
Total current
liabilities
|
|
|
5,163,593
|
|
|
|
8,205,926
|
|
|
|
9,886,224
|
Other
liabilities
|
|
|
1,671,511
|
|
|
|
1,671,511
|
|
|
|
1,712,015
|
Total
liabilities
|
|
|
6,835,104
|
|
|
|
9,877,437
|
|
|
|
11,598,239
|
GigaMedia's
shareholders' equity
|
|
|
60,079,114
|
|
|
|
60,181,559
|
|
|
|
62,961,353
|
Noncontrolling
interest
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
Total
equity
|
|
|
60,079,114
|
|
|
|
60,181,559
|
|
|
|
62,961,353
|
Total liabilities and
equity
|
|
|
66,914,218
|
|
|
|
70,058,996
|
|
|
|
74,559,592
|
GIGAMEDIA
LIMITED
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
9/30/2017
|
|
|
6/30/2017
|
|
|
9/30/2016
|
|
|
9/30/2017
|
|
|
9/30/2016
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
|
(128,723)
|
|
|
|
904,125
|
|
|
|
(2,173,195)
|
|
|
|
15,808
|
|
|
|
(3,260,396)
|
Depreciation
|
|
|
18,929
|
|
|
|
1,657
|
|
|
|
44,713
|
|
|
|
2,609
|
|
|
|
111,730
|
Amortization
|
|
|
3,301
|
|
|
|
3,005
|
|
|
|
29,832
|
|
|
|
5,803
|
|
|
|
83,639
|
Interest
income
|
|
|
(208,695)
|
|
|
|
(108,580)
|
|
|
|
(69,823)
|
|
|
|
(185,753)
|
|
|
|
(218,132)
|
Interest
expense
|
|
|
9,985
|
|
|
|
11,717
|
|
|
|
16,045
|
|
|
|
23,447
|
|
|
|
69,615
|
Income tax (benefit)
expense
|
|
|
7
|
|
|
|
--
|
|
|
|
(25)
|
|
|
|
456
|
|
|
|
(2,530)
|
EBITDA
|
|
|
(305,196)
|
|
|
|
811,924
|
|
|
|
(2,152,453)
|
|
|
|
(137,630)
|
|
|
|
(3,216,074)
|
For further information contact:
Annie Sun
Investor Relations Department
+886-2-2656-8096
IR@gigamedia.com.tw
View original
content:http://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2017-financial-results-300546314.html
SOURCE GigaMedia Limited