TAIPEI, Taiwan, May 2, 2019 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its first-quarter 2019 unaudited
financial results.
Comments from Management
In the first quarter of 2019, we continued our streamlined
operations of licensed games while growing and developing our own
offerings. In spite of an 8.4% decrease in revenues during this
quarter, operating loss maintained at approximately $0.9 million, comparable to the previous
quarter.
"The strategy we have adopted since 2018," said Giga GigaMedia
CEO James Huang, "is making a
difference. By trimming off or terminating underperforming products
or services and selectively introducing new ones, an improved
allocation of resources now delivers a more solid productivity and
opens up possibilities for exploring a long-term growth path."
We prepared for in the first quarter, and launched in early the
second quarter of 2019, Senran Kagura: New Link, a licensed
card battle game. It is one of the popular Senran Kagura
series that is developed by a subsidiary of Marvelous Inc., a
Japanese game developer. By targeting a niche audience that loves
the series, this game is well received. While we have just launched
it and are still fine-tuning the operations, based on the initial
results, we are very optimistic about its contribution to our
following quarters.
Meanwhile, we were also making progress in renovating and
developing our offerings, as well as building up an advanced
framework for promoting customer relationships. We believe the
cultivation of a loyal customer base on our own offerings will
eventually further boost customer value and create revenues and
profits
First Quarter Overview
- Operating revenue decreased by $0.1 million or 8.4% in quarter-on-quarter
comparison, and decreased by 0.7 million or 31.3% in year-
over -year comparison.
- Loss from operations amounted to approximately $0.9 million and net loss approximatley
$0.5 million, comparable to the
fourth quarter of 2018 and slightly improved when compared with the
same quarter last year.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on
browser/mobile games and casual games. Unaudited consolidated
results of GigaMedia are summarized in the table below.
For the First Quarter
GIGAMEDIA 1Q19
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
1Q19
|
|
|
4Q18
|
|
|
Change
(%)
|
|
|
1Q19
|
|
|
1Q18
|
|
|
Change
(%)
|
|
Revenues
|
|
|
1,483
|
|
|
|
1,619
|
|
|
|
(8.4)
|
%
|
|
|
1,483
|
|
|
|
2,160
|
|
|
|
(31.3)
|
%
|
Gross
Profit
|
|
|
738
|
|
|
|
880
|
|
|
|
(16.1)
|
%
|
|
|
738
|
|
|
|
1,214
|
|
|
|
(39.2)
|
%
|
Loss from
Operations
|
|
|
(949)
|
|
|
|
(1,021)
|
|
|
NM
|
|
|
|
(949)
|
|
|
|
(975)
|
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(532)
|
|
|
|
(503)
|
|
|
NM
|
|
|
|
(532)
|
|
|
|
(853)
|
|
|
NM
|
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.05)
|
|
|
|
(0.05)
|
|
|
NM
|
|
|
|
(0.05)
|
|
|
|
(0.08)
|
|
|
NM
|
|
EBITDA
(A)
|
|
|
(876)
|
|
|
|
(806)
|
|
|
NM
|
|
|
|
(876)
|
|
|
|
(1,104)
|
|
|
NM
|
|
Cash and
Restricted Cash and Cash Equivalents
|
|
|
58,494
|
|
|
|
59,826
|
|
|
|
(2.2)
|
%
|
|
|
58,494
|
|
|
|
62,618
|
|
|
|
(6.6)
|
%
|
(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 2019 decreased
by 8.4% quarter-on-quarter to $1.5
million, from $1.6 million in
the fourth quarter of 2018, or by 31.3% year-over-year from
$2.2 million in the first quarter of
2018.
- Consolidated gross profit decreased to $0.7 million from $0.9
million in last quarter and from $1.2
million the same quarter last year.
- Consolidated operating expenses were $1.7 million in the first quarter of 2019,
representing a decrease by $0.2
million quarter-on-quarter, or a decrease by $0.5 million from $2.2
million year-over-year. The year-over-year and
quarter-on-quarter change were due to reduced marketing
expenses.
- Loss from operation of the first quarter of 2019 was a loss of
$0.9 million, approximately
comparable to a loss of $1.0 million
last quarter and approximately the same as in the first quarter of
2018.
- Net loss of the first quarter of 2019 was a net loss of
$0.5 million, approximately
comparable to a loss of $0.5 million
in the fourth quarter of 2018, and improved by $0.3 million when compared from the same quarter
last year.
- Cash, restricted cash and cash equivalents at the first
quarter-end of 2019 accounted for $58.5
million, decreased by $1.3
million from the end of 2018.
Financial Position
As of March 31, 2019, GigaMedia
had $58.5 million in cash and
restricted cash, approximately $5.3
per share, compared to $62.6 million,
or $5.7 per share, at the end of the
first quarter of 2018. The decrease mostly reflected the net cash
used in operating activities.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May
2, 2019. 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 2018 Annual Report on Form
20-F filed with the U.S. Securities and Exchange Commission as
referenced below, actual results may differ materially.
"While we feel quite positive about the new licensed game
we just launched in early April
2019," said CEO James Huang,
"we believe the strategy of in-house developing own offerings and
creating customer value is of vital importance for GigaMedia's
future."
"At the same time, we keep seeking strategic investment targets
with expertise of AI or big data," said CEO James Huang. "These technologies are changing
the world with enormous potentials of enhancing efficiencies,
unlocking hidden values, or even creating new businesses. With such
a strategic investment, we can exploit our techniques of data
analytics at exploring applications of these technologies. Such an
investment also presents synergies for elevating our customer
experiences and extracting value from our vast database."
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements
presented in accordance with U.S. 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 2019 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 digital entertainment services.
GigaMedia's digital entertainment service business develops and
operates a suite of digital entertainments in Taiwan and Hong
Kong, with focus on browser/mobile games and casual 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 2019 and its
other filings with the United States Securities and Exchange
Commission.
(Tables to
follow)
|
|
|
GIGAMEDIA
LIMITED
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
|
|
3/31/2018
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital
entertainment service revenues
|
|
|
1,483,233
|
|
|
|
1,618,931
|
|
|
|
|
|
2,160,466
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service revenues
|
|
|
744,901
|
|
|
|
739,324
|
|
|
|
|
|
946,688
|
|
Gross
profit
|
|
|
738,332
|
|
|
|
879,607
|
|
|
|
|
|
1,213,778
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
320,494
|
|
|
|
215,625
|
|
|
|
|
|
289,171
|
|
Selling and marketing
expenses
|
|
|
526,003
|
|
|
|
576,256
|
|
|
|
|
|
996,751
|
|
General and
administrative expenses
|
|
|
835,987
|
|
|
|
860,903
|
|
|
|
|
|
896,504
|
|
Impairment
losses
|
|
|
—
|
|
|
|
243,966
|
|
|
|
|
|
—
|
|
Other
|
|
|
5,214
|
|
|
|
3,946
|
|
|
|
|
|
6,494
|
|
|
|
|
1,687,698
|
|
|
|
1,900,696
|
|
|
|
|
|
2,188,920
|
|
Loss from
operations
|
|
|
(949,366)
|
|
|
|
(1,021,089)
|
|
|
|
|
|
(975,142)
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
381,799
|
|
|
|
333,338
|
|
|
|
|
|
278,943
|
|
Foreign exchange
(loss) gain - net
|
|
|
(11,402)
|
|
|
|
129,052
|
|
|
|
|
|
(158,912)
|
|
Other-net
|
|
|
46,912
|
|
|
|
56,162
|
|
|
|
|
|
2,346
|
|
|
|
|
417,309
|
|
|
|
518,552
|
|
|
|
|
|
122,377
|
|
Loss before income
taxes
|
|
|
(532,057)
|
|
|
|
(502,537)
|
|
|
|
|
|
(852,765)
|
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Net loss attributable
to shareholders of GigaMedia
|
|
|
(532,057)
|
|
|
|
(502,537)
|
|
|
|
|
|
(852,765)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.05)
|
|
|
|
(0.05)
|
|
|
|
|
|
(0.08)
|
|
Diluted:
|
|
|
(0.05)
|
|
|
|
(0.05)
|
|
|
|
|
|
(0.08)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
|
|
11,052,235
|
|
Diluted
|
|
|
11,052,235
|
|
|
|
11,052,235
|
|
|
|
|
|
11,052,235
|
|
GIGAMEDIA
LIMITED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
3/31/2018
|
|
|
|
unaudited
|
|
|
audited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
57,976,503
|
|
|
|
59,307,829
|
|
|
|
62,111,308
|
|
Accounts receivable -
net
|
|
|
589,520
|
|
|
|
523,004
|
|
|
|
626,225
|
|
Prepaid
expenses
|
|
|
208,919
|
|
|
|
122,434
|
|
|
|
384,051
|
|
Restricted
cash
|
|
|
517,815
|
|
|
|
517,815
|
|
|
|
506,981
|
|
Other
receivables
|
|
|
375,192
|
|
|
|
2,998
|
|
|
|
314,331
|
|
Other current
assets
|
|
|
127,377
|
|
|
|
120,802
|
|
|
|
140,241
|
|
Total current
assets
|
|
|
59,795,326
|
|
|
|
60,594,882
|
|
|
|
64,083,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment - net
|
|
|
100,148
|
|
|
|
121,585
|
|
|
|
203,992
|
|
Intangible assets -
net
|
|
|
32,492
|
|
|
|
37,726
|
|
|
|
9,353
|
|
Prepaid licensing and
royalty fees
|
|
|
383,681
|
|
|
|
435,156
|
|
|
|
993,833
|
|
Other
assets
|
|
|
1,034,278
|
|
|
|
255,604
|
|
|
|
289,821
|
|
Total
assets
|
|
|
61,345,925
|
|
|
|
61,444,953
|
|
|
|
65,580,136
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
98,921
|
|
|
|
104,030
|
|
|
|
364,977
|
|
Accrued
compensation
|
|
|
134,243
|
|
|
|
170,470
|
|
|
|
207,524
|
|
Accrued
expenses
|
|
|
1,228,483
|
|
|
|
1,262,707
|
|
|
|
2,148,836
|
|
Unearned
revenue
|
|
|
1,290,792
|
|
|
|
1,369,769
|
|
|
|
1,845,355
|
|
Other current
liabilities
|
|
|
177,073
|
|
|
|
366,167
|
|
|
|
336,062
|
|
Total current
liabilities
|
|
|
2,929,512
|
|
|
|
3,273,143
|
|
|
|
4,902,754
|
|
Other
liabilities
|
|
|
779,919
|
|
|
|
—
|
|
|
|
—
|
|
Total
liabilities
|
|
|
3,709,431
|
|
|
|
3,273,143
|
|
|
|
4,902,754
|
|
Total GigaMedia's
shareholders' equity
|
|
|
57,636,494
|
|
|
|
58,171,810
|
|
|
|
60,677,382
|
|
Total liabilities and
equity
|
|
|
61,345,925
|
|
|
|
61,444,953
|
|
|
|
65,580,136
|
|
GIGAMEDIA
LIMITED
Reconciliations of Non-GAAP Results of Operations
|
|
|
|
|
|
Three months
ended
|
|
|
|
3/31/2019
|
|
|
12/31/2018
|
|
|
3/31/2018
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Loss to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(532,057)
|
|
|
|
(502,537)
|
|
|
|
(852,765)
|
|
Depreciation
|
|
|
25,388
|
|
|
|
25,301
|
|
|
|
23,454
|
|
Amortization
|
|
|
12,899
|
|
|
|
4,137
|
|
|
|
3,828
|
|
Interest
income
|
|
|
(381,799)
|
|
|
|
(333,338)
|
|
|
|
(278,943)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(875,569)
|
|
|
|
(806,437)
|
|
|
|
(1,104,426)
|
|
View original
content:http://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2019-financial-results-300842742.html
SOURCE GigaMedia Limited