TAIPEI, Oct. 31, 2019 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its third-quarter 2019
unaudited financial results.
Comments from Management
In the third quarter of 2019, total revenues increased by 9.0%
to approximately $1.91 million, from
$1.75 million last quarter. While the
increase of revenues was mainly due to seasonalities exhibited in
certain games for summer peak and anniversary promotions, the
overall gross margin widened to 55.0%, compared to 44.0% in last
quarter and 41.8% in the same quarter last year, as a result of an
improved cost structure.
And we were also making progress in developing in-house
offerings, among which a new casual game platform will be released
to the closed and then open beta testing tracks in the next
quarter.
"During past quarters in 2019, besides pursuing an
internally-driven growth by developing our own offerings, we
continued improving the cost structure of our licensed game
operations, as well as calibrating our marketing and promotional
strategies for better effectiveness," said GigaMedia CEO
James Huang, "and the efforts now
gradually began to bear fruits."
Third Quarter Overview
- Revenues increased approximately by 9.0% quarter-on-quarter to
$1.91 million from $1.75 million in the second quarter of this year,
and by 14.8% year-over-year from $1.66
million in the same period last year.
- Gross profit increased to $1.05
million from $0.77 million in
the second quarter of 2019.
- Net loss reduced considerably to $0.24
million from $0.61 million in
last quarter, and from $1.08 million
in the same period last year.
- The net asset value was around $5.13 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on
browser/mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the third Quarter
GIGAMEDIA3Q19
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
3Q19
|
|
2Q19
|
|
|
Change
(%)
|
|
|
3Q19
|
|
3Q18
|
|
Change
(%)
|
|
Revenues
|
|
|
1,908
|
|
|
1,750
|
|
|
9.0
|
%
|
|
|
1,908
|
|
|
1,662
|
|
14.8
|
%
|
Gross
Profit
|
|
|
1,049
|
|
|
769
|
|
|
36.4
|
%
|
|
|
1,049
|
|
|
694
|
|
51.2
|
%
|
Loss from
Operations
|
|
|
(544)
|
|
|
(1,122)
|
|
|
NM
|
|
|
|
(544)
|
|
|
(1,484)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(242)
|
|
|
(614)
|
|
|
NM
|
|
|
|
(242)
|
|
|
(1,083)
|
|
NM
|
|
Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.02)
|
|
|
(0.06)
|
|
|
NM
|
|
|
|
(0.02)
|
|
|
(0.10)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(585)
|
|
|
(1,000)
|
|
|
NM
|
|
|
|
(585)
|
|
|
(1,393)
|
|
NM
|
|
Cash, Restricted Cash and Cash
Equivalents
|
|
|
58,164
|
|
|
58,015
|
|
|
0.3
|
%
|
|
|
58,164
|
|
|
60,439
|
|
-3.8
|
%
|
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 2019
increased by 9.0% to $1.91 million
from $1.75 million in the prior
quarter and by 14.8% year-over-year from $1.66 million in the third quarter 2018. The
increase was mainly due to the summer peak of Tales Runner,
and the 4th anniversary promotions for Yume100, while
Senran Kagura: New Link, a new game launched last quarter,
recorded a flat performance in this quarter.
- Consolidated gross profit increased by 36.4%
quarter-on-quarter to $1.05 million
from $0.77 million and 51.2%
year-over-year from $0.69 million the
third quarter last year.
- Consolidated operating expenses were $1.59 million in the third quarter of 2019,
representing a decrease of $0.30
million from the second quarter of 2019. The decrease was
due to higher expenses in last quarter, mainly for the launch of
Senran Kagura in addition to certain administrative
activities.
- Consolidated loss from operation of the third quarter of
2019 was $0.54 million, a decrease of
loss by approximately $0.58 million
from a loss of $1.12 million in last
quarter.
- Consolidated net loss of the third quarter of 2019 was
$0.24 million, reduced from
$0.61 million in last quarter.
- Cash, restricted cash and cash equivalents as of the end
of the third quarter of 2019 amounted to $58.16 million, increased by 0.3% from
$58.02 million at the end of the
second quarter of 2019.
Financial Position
GigaMedia maintained its solid financial position, with cash,
restricted cash and cash equivalents accounted for $58.16 million, or $5.26 per share, as of September 30, 2019.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of October
31, 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.
"Following our strategic plan outlined in the beginning of 2019,
we have steadily built up healthier operations for both our
licensed and self-developed games, and have accumulated momentums
for future growth," said GigaMedia CEO James Huang. "In the coming quarter, we will
continue to boost productivities by improving existing products and
services, introducing own offerings, along with adopting strategies
of promoting customer relationships."
As for the customer platform, "while it is still at a nascent
stage and we are working on creating capacity for providing more
diverse products and services, it presents a great potential on
saving marketing and channel costs," continued CEO James Huang. "And we consider it essential in
broadening and cultivating a loyal and profitable customer base,
where we can take various initiatives to promote customer
values."
Meanwhile, our business strategies always include expanding
through mergers and acquisitions. "We will also continue reviewing
prospects that can provide synergies to our business for
accelerating our growth and enhancing shareholders' value," stated
CEO James Huang.
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 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 in
Taiwan and Hong Kong. GigaMedia's digital entertainment
service business is an innovative leader in Asia with growing capabilities of development,
distribution and operation of digital entertainments, as well as
platform services for games with a focus on mobile games and casual
games. More information on GigaMedia can be obtained from
www.gigamedia.com.tw.
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
|
Nine months
ended
|
|
|
|
9/30/2019
|
|
6/30/2019
|
|
9/30/2018
|
|
9/30/2019
|
|
9/30/2018
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,908,261
|
|
|
1,749,583
|
|
|
1,662,324
|
|
|
5,141,077
|
|
|
5,481,704
|
Other
revenues
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
1,908,261
|
|
|
1,749,583
|
|
|
1,662,324
|
|
|
5,141,077
|
|
|
5,481,704
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service revenues
|
|
|
859,511
|
|
|
980,448
|
|
|
968,442
|
|
|
2,584,861
|
|
|
2,845,551
|
Cost of other
revenues
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
859,511
|
|
|
980,448
|
|
|
968,442
|
|
|
2,584,861
|
|
|
2,845,551
|
Gross
profit
|
|
|
1,048,750
|
|
|
769,135
|
|
|
693,882
|
|
|
2,556,216
|
|
|
2,636,153
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
326,419
|
|
|
325,144
|
|
|
286,015
|
|
|
972,057
|
|
|
875,820
|
Selling and marketing
expenses
|
|
|
461,653
|
|
|
580,539
|
|
|
963,444
|
|
|
1,568,194
|
|
|
2,720,380
|
General and
administrative expenses
|
|
|
800,015
|
|
|
974,648
|
|
|
923,288
|
|
|
2,610,650
|
|
|
2,823,151
|
Other
|
|
|
4,723
|
|
|
11,165
|
|
|
5,514
|
|
|
21,103
|
|
|
18,564
|
|
|
|
1,592,810
|
|
|
1,891,496
|
|
|
2,178,261
|
|
|
5,172,004
|
|
|
6,437,915
|
Loss from
operations
|
|
|
(544,060)
|
|
|
(1,122,361)
|
|
|
(1,484,379)
|
|
|
(2,615,788)
|
|
|
(3,801,762)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
364,539
|
|
|
414,450
|
|
|
351,262
|
|
|
1,160,788
|
|
|
968,808
|
Foreign exchange
(loss) gain - net
|
|
|
(62,487)
|
|
|
90,922
|
|
|
49,285
|
|
|
17,033
|
|
|
137,203
|
Gain on disposal of
property, plant and equipment
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
31
|
Other -
net
|
|
|
119
|
|
|
3,416
|
|
|
728
|
|
|
50,448
|
|
|
5,196
|
|
|
|
302,171
|
|
|
508,788
|
|
|
401,275
|
|
|
1,228,269
|
|
|
1,111,238
|
Loss before income
taxes
|
|
|
(241,889)
|
|
|
(613,573)
|
|
|
(1,083,104)
|
|
|
(1,387,519)
|
|
|
(2,690,524)
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Net loss attributable
to GigaMedia
|
|
|
(241,889)
|
|
|
(613,573)
|
|
|
(1,083,104)
|
|
|
(1,387,519)
|
|
|
(2,690,524)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.02)
|
|
|
(0.06)
|
|
|
(0.10)
|
|
|
(0.13)
|
|
|
(0.24)
|
Diluted:
|
|
|
(0.02)
|
|
|
(0.06)
|
|
|
(0.10)
|
|
|
(0.13)
|
|
|
(0.24)
|
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
|
|
|
9/30/2019
|
|
6/30/2019
|
|
9/30/2018
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
57,635,576
|
|
|
57,489,563
|
|
|
59,923,784
|
Accounts receivable -
net
|
|
|
591,302
|
|
|
591,905
|
|
|
835,013
|
Prepaid
expenses
|
|
|
142,819
|
|
|
275,551
|
|
|
237,635
|
Restricted
cash
|
|
|
528,387
|
|
|
525,354
|
|
|
514,770
|
Other
receivables
|
|
|
457,168
|
|
|
458,383
|
|
|
316,540
|
Other current
assets
|
|
|
165,294
|
|
|
131,150
|
|
|
129,114
|
Total current
assets
|
|
|
59,520,546
|
|
|
59,471,906
|
|
|
61,956,856
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment - net
|
|
|
101,998
|
|
|
92,580
|
|
|
147,600
|
Intangible assets -
net
|
|
|
78,828
|
|
|
23,545
|
|
|
41,109
|
Prepaid licensing and
royalty fees
|
|
|
468,722
|
|
|
574,274
|
|
|
1,097,911
|
Other
assets
|
|
|
918,556
|
|
|
1,035,529
|
|
|
278,356
|
Total
assets
|
|
|
61,088,650
|
|
|
61,197,834
|
|
|
63,521,832
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
140,676
|
|
|
119,597
|
|
|
279,485
|
Accrued
compensation
|
|
|
371,212
|
|
|
253,262
|
|
|
606,547
|
Accrued
expenses
|
|
|
1,470,179
|
|
|
1,340,539
|
|
|
2,066,188
|
Unearned
revenue
|
|
|
1,504,176
|
|
|
1,617,881
|
|
|
1,971,039
|
Other current
liabilities
|
|
|
241,788
|
|
|
197,776
|
|
|
196,516
|
Total current
liabilities
|
|
|
3,728,031
|
|
|
3,529,055
|
|
|
5,119,775
|
Other
liabilities
|
|
|
662,530
|
|
|
781,187
|
|
|
—
|
Total
liabilities
|
|
|
4,390,561
|
|
|
4,310,242
|
|
|
5,119,775
|
Total
equity
|
|
|
56,698,089
|
|
|
56,887,592
|
|
|
58,402,057
|
Total liabilities and
equity
|
|
|
61,088,650
|
|
|
61,197,834
|
|
|
63,521,832
|
GIGAMEDIA
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
Three months
ended
|
Nine months
ended
|
|
|
|
9/30/2019
|
|
6/30/2019
|
|
9/30/2018
|
|
9/30/2019
|
|
9/30/2018
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Loss to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(241,889)
|
|
|
(613,573)
|
|
|
(1,083,104)
|
|
(1,387,519)
|
|
|
(2,690,524)
|
Depreciation
|
|
|
9,919
|
|
|
14,769
|
|
|
25,318
|
|
50,076
|
|
|
74,334
|
Amortization
|
|
|
11,126
|
|
|
12,830
|
|
|
16,516
|
|
36,854
|
|
|
31,876
|
Interest
income
|
|
|
(364,539)
|
|
|
(414,450)
|
|
|
(351,262)
|
|
(1,160,788)
|
|
|
(968,808)
|
Interest
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
|
—
|
EBITDA
|
|
|
(585,383)
|
|
|
(1,000,424)
|
|
|
(1,392,532)
|
|
(2,461,377)
|
|
|
(3,553,122)
|
View original
content:http://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2019-financial-results-300949069.html
SOURCE GigaMedia Limited