TAIPEI, March 31, 2021 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its unaudited financial results for
the fourth quarter and full year of 2020.
Highlights for Year Ended December 31,
2020
For 2020, GigaMedia reported revenues of $6.9 million, with a gross profit of $3.9 million, an operating loss of $2.2 million and the net loss of $1.3 million.
"In spite of a slower fourth quarter, GigaMedia closed 2020 with
encouraging results as a whole," said GigaMedia CEO James Huang. "Wider customer base, sustainable
revenues, and higher profitability. With our internally-driven
growth, improved cost structure and effective marketing, we have
been steadily delivering our strategy and making good
progress."
Compared to the prior year, the 2020 performance exhibited
overall improvements. Our gross margin rate has risen by 3.1% to
57.0% from 53.9% in 2019, and consequently the gross profit
increased by 9.4% while the revenues slightly increased by 3.5%.
The loss from operations was also cut by 28.6% from $3.0 million in 2019, and the net loss narrowed
by 22.0%.
Meanwhile, in 2020 GigaMedia has entered and executed a purchase
agreement to acquire ownership of $10
million principal amount of convertible promissory note
issued by Aeolus Robotics Corporation ("Aeolus"), an R&D
company engaged in developing AI-enabled service robots. We have
made an announcement for this strategic investment on August 31, 2020, immediately after the closing of
the agreement. The issuance of this convertible note provided
Aeolus its much-needed working capital, and through this funding,
GigaMedia is exploring possibilities of further strategic
cooperation with Aeolus.
Fourth Quarter and Full Year Overview
- Consolidated 4Q revenues decreased by 30.1%
quarter-on-quarter mainly due to seasonality, and by 5.7%
year-over-year as certain of our licensed games have entered the
decline stage. Full year revenues increased 3.5% to $6.9 million from $6.6
million in 2019.
- Loss from operations for 4Q was $0.6
million, representing a loss increase from $0.4 million in 3Q, mainly due to a decrease in
gross profit and an increase in selling and marketing expenses.
Full year operating loss was $2.2
million, representing a loss reduction of $0.9 million from approximately $3.0 million for 2019.
- The net asset value was approximately $4.89 per share as of the end of 2020.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Full Year 2020
GIGAMEDIA
FY20UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
FY20
|
|
FY19
|
|
Change
(%)
|
Revenues
|
|
|
6,875
|
|
|
6,645
|
|
|
3.5%
|
Gross
Profit
|
|
|
3,919
|
|
|
3,581
|
|
|
9.4%
|
Loss from
Operations
|
|
|
(2,153)
|
|
|
(3,015)
|
|
NM
|
Net Loss
Attributable to GigaMedia
|
|
|
(1,293)
|
|
|
(1,659)
|
|
NM
|
Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.12)
|
|
|
(0.15)
|
|
NM
|
EBITDA
(A)
|
|
|
(1,899)
|
|
|
(3,035)
|
|
NM
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
46,002
|
|
|
58,274
|
|
|
-21.1%
|
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.)
- Consolidated revenues for the year ended December 31, 2020 was $6.9
million, increased from $6.6
million in the prior year. The increase was mainly to our
efforts in revitalizing and boosting Tales Runner, a
14-year-old game we have been licensed to operate in Hong Kong.
- Consolidated loss from operations for 2020 was
$2.2 million, compared to a loss of
$3.0 million in the last year. The
decrease of loss was due to the improvement in cost structure and
effectiveness in selling and marketing activities.
- Consolidated net loss for 2020 was $1.3 million, improved from a net loss of
$1.7 million in the prior year. Loss
per share for 2020 was $0.12 per
share, compared to $0.15 last
year.
- Cash, cash equivalents and restricted cash at the year end
of 2020 amounted to $46.0
million.
For the Fourth Quarter
GIGAMEDIA 4Q20
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per
share amounts)
|
|
4Q20
|
|
3Q20
|
|
Change
(%)
|
|
4Q20
|
|
4Q19
|
|
Change
(%)
|
Revenues
|
|
|
1,418
|
|
|
2,028
|
|
|
-30.1%
|
|
|
1,418
|
|
|
1,504
|
|
|
-5.7%
|
Gross
Profit
|
|
|
818
|
|
|
1,196
|
|
|
-31.6%
|
|
|
818
|
|
|
1,025
|
|
|
-20.2%
|
Loss from
Operations
|
|
|
(607)
|
|
|
(357)
|
|
NM
|
|
|
(607)
|
|
|
(399)
|
|
NM
|
Net Loss
Attributable to GigaMedia
|
|
|
(340)
|
|
|
(248)
|
|
NM
|
|
|
(340)
|
|
|
(271)
|
|
NM
|
Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.03)
|
|
|
(0.02)
|
|
NM
|
|
|
(0.03)
|
|
|
(0.02)
|
|
NM
|
EBITDA
(A)
|
|
|
(411)
|
|
|
(317)
|
|
NM
|
|
|
(411)
|
|
|
(574)
|
|
NM
|
Cash, Cash
equivalents and Restricted cash
|
|
|
46,002
|
|
|
46,869
|
|
|
-1.8%
|
|
|
46,002
|
|
|
58,274
|
|
|
-21.1%
|
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.)
Fourth-Quarter Financial Results
- Consolidated revenues for the fourth quarter of 2020
decreased by 30.1% quarter-on-quarter from $2.0 million to $1.4
million mainly due to seasonality, and decreased by 5.7%
year-over-year mainly as revenues from certain licensed games
dwindled.
- Consolidated loss from operations of the fourth quarter of
2020 was $0.6 million, compared to a
loss of $0.4 million in the last
quarter.
- Consolidated net loss of the fourth quarter of 2020 was
$0.3 million, loss slightly increased
from a net loss of $0.2 million in
the last quarter.
- Cash, cash equivalents and restricted cash at the end of
the fourth quarter of 2020 amounted to $46.0
million, which slightly decreased from $46.9 million at the end of the prior
quarter.
Financial Position
GigaMedia maintained its solid financial position. Cash, cash
equivalents and restricted cash amounted to $46.0 million, or approximately $4.16 per share, along with zero bank loan. Our
shareholders' equity was approximately $54.1
million of as of December 31,
2020.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of
March 31, 2021. Given
potential changes in economic conditions and consumer spending, the
evolving nature of digital entertainments, and
various other risk factors, including those discussed in the
Company's 2019 Annual Report on
Form 20-F filed with the U.S.
Securities and Exchange Commission as referenced
below, actual results may differ materially.
"Evidently, GigaMedia has been moving steadily towards
break-even and beyond," said CEO James
Huang. "In 2021, we continue to boost productivities by
introducing fast-paced playability, enhancing new comer
accessibility, and promoting customer relationships."
Meanwhile, our business strategies always include expanding
through mergers and acquisitions. "We will also continue reviewing
strategic opportunities that would enable us to accelerate our
growth and enhance shareholders' value," stated CEO James Huang.
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
Unaudited results
All quarterly and certain annual
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 fourth quarter and full year 2020
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 digital
entertainment products or services that are appealing to users, our
ability to retain existing users and attract new users, and our
ability to launch digital entertainment products and services 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 2020 and its other filings
with the United States Securities and Exchange Commission.
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
12/31/2020
|
|
|
09/30/2020
|
|
|
12/31/2019
|
|
|
12/31/2020
|
|
|
12/31/2019
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,417,636
|
|
|
|
2,028,138
|
|
|
|
1,503,848
|
|
|
|
6,875,225
|
|
|
|
6,644,924
|
|
Other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,417,636
|
|
|
|
2,028,138
|
|
|
|
1,503,848
|
|
|
|
6,875,225
|
|
|
|
6,644,924
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Digital
entertainment service revenues
|
|
|
599,458
|
|
|
|
831,732
|
|
|
|
479,341
|
|
|
|
2,956,289
|
|
|
|
3,064,201
|
|
Cost of other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
599,458
|
|
|
|
831,732
|
|
|
|
479,341
|
|
|
|
2,956,289
|
|
|
|
3,064,201
|
|
Gross
profit
|
|
|
818,178
|
|
|
|
1,196,406
|
|
|
|
1,024,507
|
|
|
|
3,918,936
|
|
|
|
3,580,723
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
324,404
|
|
|
|
341,023
|
|
|
|
213,241
|
|
|
|
1,326,987
|
|
|
|
1,185,299
|
|
Selling and marketing
expenses
|
|
|
466,093
|
|
|
|
374,462
|
|
|
|
427,090
|
|
|
|
1,618,560
|
|
|
|
1,995,284
|
|
General and
administrative expenses and others
|
|
|
634,118
|
|
|
|
836,107
|
|
|
|
571,562
|
|
|
|
3,120,665
|
|
|
|
3,182,212
|
|
Impairment
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
208,921
|
|
|
|
—
|
|
|
|
208,921
|
|
Other
|
|
|
163
|
|
|
|
2,157
|
|
|
|
2,957
|
|
|
|
5,262
|
|
|
|
24,060
|
|
|
|
|
1,424,778
|
|
|
|
1,553,749
|
|
|
|
1,423,771
|
|
|
|
6,071,474
|
|
|
|
6,595,776
|
|
Income (loss) from
operations
|
|
|
(606,600)
|
|
|
|
(357,343)
|
|
|
|
(399,264)
|
|
|
|
(2,152,538)
|
|
|
|
(3,015,053)
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
73,403
|
|
|
|
71,014
|
|
|
|
322,587
|
|
|
|
613,016
|
|
|
|
1,483,375
|
|
Foreign exchange gain
(loss) - net
|
|
|
142,951
|
|
|
|
39,214
|
|
|
|
(84,774)
|
|
|
|
198,694
|
|
|
|
(67,741)
|
|
Other -
net
|
|
|
50,256
|
|
|
|
(1,132)
|
|
|
|
(110,020)
|
|
|
|
47,423
|
|
|
|
(59,571)
|
|
|
|
|
266,610
|
|
|
|
109,096
|
|
|
|
127,793
|
|
|
|
859,133
|
|
|
|
1,356,063
|
|
Loss before income
taxes
|
|
|
(339,990)
|
|
|
|
(248,247)
|
|
|
|
(271,471)
|
|
|
|
(1,293,405)
|
|
|
|
(1,658,990)
|
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net loss attributable
to shareholders of GigaMedia
|
|
|
(339,990)
|
|
|
|
(248,247)
|
|
|
|
(271,471)
|
|
|
|
(1,293,405)
|
|
|
|
(1,658,990)
|
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.03)
|
|
|
|
(0.02)
|
|
|
|
(0.02)
|
|
|
|
(0.12)
|
|
|
|
(0.15)
|
|
Diluted:
|
|
|
(0.03)
|
|
|
|
(0.02)
|
|
|
|
(0.02)
|
|
|
|
(0.12)
|
|
|
|
(0.15)
|
|
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
|
|
12/31/2020
|
|
|
09/30/2020
|
|
|
12/31/2019
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
45,702,352
|
|
|
|
46,333,621
|
|
|
|
57,742,696
|
|
Accounts receivable -
net
|
|
|
274,584
|
|
|
|
322,000
|
|
|
|
368,445
|
|
Prepaid
expenses
|
|
|
87,728
|
|
|
|
155,357
|
|
|
|
112,243
|
|
Restricted
cash
|
|
|
300,000
|
|
|
|
535,605
|
|
|
|
530,984
|
|
Other
receivables
|
|
|
3,579
|
|
|
|
36,450
|
|
|
|
261
|
|
Other current
assets
|
|
|
157,020
|
|
|
|
165,411
|
|
|
|
138,601
|
|
Total current
assets
|
|
|
46,525,263
|
|
|
|
47,548,444
|
|
|
|
58,893,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
|
10,000,000
|
|
|
|
10,000,000
|
|
|
|
—
|
|
Property, plant &
equipment - net
|
|
|
21,852
|
|
|
|
22,580
|
|
|
|
—
|
|
Intangible assets -
net
|
|
|
3,640
|
|
|
|
16,186
|
|
|
|
—
|
|
Prepaid licensing and
royalty fees
|
|
|
130,718
|
|
|
|
142,860
|
|
|
|
43,915
|
|
Other
assets
|
|
|
341,701
|
|
|
|
312,013
|
|
|
|
285,071
|
|
Total
assets
|
|
|
57,023,174
|
|
|
|
58,042,083
|
|
|
|
59,222,216
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
69,931
|
|
|
|
74,138
|
|
|
|
64,337
|
|
Accrued
compensation
|
|
|
474,456
|
|
|
|
403,753
|
|
|
|
200,455
|
|
Accrued
expenses
|
|
|
1,041,256
|
|
|
|
1,397,399
|
|
|
|
1,079,234
|
|
Unearned
revenue
|
|
|
949,853
|
|
|
|
1,041,862
|
|
|
|
1,364,749
|
|
Other current
liabilities
|
|
|
387,712
|
|
|
|
545,974
|
|
|
|
874,434
|
|
Total current
liabilities
|
|
|
2,923,208
|
|
|
|
3,463,126
|
|
|
|
3,583,209
|
|
Other
liabilities
|
|
|
3,103
|
|
|
|
3,379
|
|
|
|
94,385
|
|
Total
liabilities
|
|
|
2,926,311
|
|
|
|
3,466,505
|
|
|
|
3,677,594
|
|
Total
equity
|
|
|
54,096,863
|
|
|
|
54,575,578
|
|
|
|
55,544,622
|
|
Total liabilities and
equity
|
|
|
57,023,174
|
|
|
|
58,042,083
|
|
|
|
59,222,216
|
|
GIGAMEDIA LIMITED
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
12/31/2020
|
|
|
9/30/2020
|
|
|
12/31/2019
|
|
|
12/31/2020
|
|
|
12/31/2019
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Loss to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(339,990)
|
|
|
|
(248,247)
|
|
|
|
(271,471)
|
|
|
|
(1,293,405)
|
|
|
|
(1,658,990)
|
|
Depreciation
|
|
|
1,192
|
|
|
|
752
|
|
|
|
10,888
|
|
|
|
2,833
|
|
|
|
60,964
|
|
Amortization
|
|
|
1,252
|
|
|
|
1,224
|
|
|
|
9,669
|
|
|
|
4,876
|
|
|
|
46,523
|
|
Interest
income
|
|
|
(73,403)
|
|
|
|
(71,014)
|
|
|
|
(322,587)
|
|
|
|
(613,016)
|
|
|
|
(1,483,375)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(410,949)
|
|
|
|
(317,285)
|
|
|
|
(573,501)
|
|
|
|
(1,898,712)
|
|
|
|
(3,034,878)
|
|
View original
content:http://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2020-financial-results-301259693.html
SOURCE GigaMedia Limited