TAIPEI, July 30, 2021 /PRNewswire/ -- GigaMedia
Limited (NASDAQ: GIGM) today announced its second-quarter 2021
unaudited financial results.
Comments from Management
In the second quarter of 2021, GigaMedia reported revenues of
$1.23 million, with a gross profit
$0.63 million, an operating loss of
$1.08 million and the net loss of
$0.84 million. Total revenues
decreased by 15.3% if compared to the previous quarter.
The decrease in revenues was mainly due to seasonality and the
dwindling in certain licensed games. While Taiwan experienced an outbreak of the COVID-19
pandemic in mid-May, we managed to minimize the disruption caused
to our business operations.
"The first half year of 2021 was indeed tough for us," said
GigaMedia CEO James Huang, "but
after weathering all these, we have gathered pace and are confident
for a brighter second half year."
Second Quarter Overview
- Operating revenues decreased by approximately 15.3%
quarter-on-quarter, to $1.23 million
from $1.45 million in last quarter,
and decreased by 32.9% year-over-year from $1.83 million the same period last year. The
decrease was mainly due to seasonality and the slowdown of the
upgrades and supports form our licensors affected by the COVID-19
pandemic.
- Gross profit decreased by 20% to $0.63
million from $0.79 million in
last quarter, and decreased by 35.3% compared to $0.98 million in the same period last year.
- The net asset value was $4.73 per
share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on
browser/mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Second Quarter
GIGAMEDIA 2Q21
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except
per share amounts)
|
|
2Q21
|
|
1Q21
|
|
Change
(%)
|
|
|
2Q21
|
|
2Q20
|
|
Change
(%)
|
|
Revenues
|
|
1,225
|
|
1,446
|
|
-15.28
|
%
|
|
1,225
|
|
1,826
|
|
-32.91
|
%
|
Gross
Profit
|
|
633
|
|
791
|
|
-19.97
|
%
|
|
633
|
|
978
|
|
-35.28
|
%
|
Loss from
Operations
|
|
(1,079)
|
|
(901)
|
|
NM
|
|
|
(1,079)
|
|
(549)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
(836)
|
|
(875)
|
|
NM
|
|
|
(836)
|
|
(419)
|
|
NM
|
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
(0.08)
|
|
(0.08)
|
|
NM
|
|
|
(0.08)
|
|
(0.04)
|
|
NM
|
|
EBITDA
(A)
|
|
(911)
|
|
(949)
|
|
NM
|
|
|
(911)
|
|
(634)
|
|
NM
|
|
Cash , Cash
Equivalents and Restricted Cash
|
|
43,650
|
|
44,446
|
|
-1.79
|
%
|
|
43,650
|
|
56,783
|
|
-23.12
|
%
|
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.)
|
Second-Quarter Financial Results
- Consolidated revenues for the second quarter of 2021
decreased by 15.3% quarter-on-quarter to $1.23 million from $1.45
million in last quarter, and by 32.9% year-over-year from
$1.83 million the same period last
year.
- Consolidated gross profit was $0.63
million, decreased by 20.0% quarter-on-quarter and 35.3%
year-over-year.
- Consolidated operating expenses were $1.71 million increased by 1.2% if compared to
the first quarter of 2021, and increased by 12.2% if compared to
the same period last year.
- Consolidated loss from operation of the second quarter of
2021 was a loss of $1.08 million,
increased from a loss of $0.90
million in the first quarter.
- Net loss in the second quarter of 2021 was $0.84 million, decreased from a net loss of
$0.87 million in the first
quarter.
- Cash, cash equivalents and restricted cash at the end of
the second quarter of 2021 amounted to $43.7
million, slightly decreased by 1.8% from $44.4 million as of the end of the first
quarter.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounted to $43.7 million, or $3.95 per share, as of June 30, 2021.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of July
30, 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
2020 Annual Report on Form 20-F
filed with the U.S. Securities and Exchange
Commission as referenced below, actual results may
differ materially.
"In the second half of 2021, we will be committing ourselves to
boosting the productivity of our in-house developed casual games,
mainly by introducing fast-paced playability, building gamers'
sense of community to improve stickiness, and enhancing marketing
effectiveness," stated GigaMedia CEO James
Huang.
Meanwhile, our management continues evaluating and pursuing
prospects of strategic investment opportunities which are with
potential to expand our business and create greater shareholder
value.
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 second quarter 2021 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 2021 and its
other filings with the United States Securities and Exchange
Commission.
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
06/30/2021
|
|
03/31/2021
|
|
06/30/2020
|
|
06/30/2021
|
|
06/30/2020
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,224,749
|
|
|
1,446,276
|
|
|
1,825,547
|
|
2,671,025
|
|
3,429,450
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service revenues
|
|
|
591,687
|
|
|
655,757
|
|
|
847,906
|
|
1,247,444
|
|
1,525,099
|
Gross
profit
|
|
|
633,062
|
|
|
790,519
|
|
|
977,641
|
|
1,423,581
|
|
1,904,351
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
373,057
|
|
|
345,898
|
|
|
332,745
|
|
718,955
|
|
661,560
|
Selling and marketing
expenses
|
|
|
376,914
|
|
|
397,033
|
|
|
367,529
|
|
773,947
|
|
778,004
|
General and
administrative expenses
|
|
|
960,474
|
|
|
946,192
|
|
|
825,998
|
|
1,906,666
|
|
1,650,440
|
Other
|
|
|
2,103
|
|
|
2,599
|
|
|
(42)
|
|
4,703
|
|
2,942
|
|
|
|
1,712,548
|
|
|
1,691,722
|
|
|
1,526,230
|
|
3,404,271
|
|
3,092,946
|
Loss from
operations
|
|
|
(1,079,486)
|
|
|
(901,203)
|
|
|
(548,589)
|
|
(1,980,690)
|
|
(1,188,595)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
80,184
|
|
|
78,595
|
|
|
212,881
|
|
158,779
|
|
468,600
|
Foreign exchange
(loss) gain - net
|
|
|
163,139
|
|
|
(49,357)
|
|
|
(82,357)
|
|
113,782
|
|
16,529
|
Other -
net
|
|
|
176
|
|
|
(2,809)
|
|
|
(1,404)
|
|
(2,633)
|
|
(1,702)
|
|
|
|
243,499
|
|
|
26,429
|
|
|
129,120
|
|
269,928
|
|
483,427
|
Loss from continuing
operations before income taxes
|
|
|
(835,987)
|
|
|
(874,774)
|
|
|
(419,469)
|
|
(1,710,762)
|
|
(705,168)
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
—
|
|
—
|
Net
loss attributable to shareholders of GigaMedia
|
|
|
(835,987)
|
|
|
(874,774)
|
|
|
(419,469)
|
|
(1,710,762)
|
|
(705,168)
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.08)
|
|
|
(0.08)
|
|
|
(0.04)
|
|
(0.15)
|
|
(0.06)
|
Diluted
|
|
|
(0.08)
|
|
|
(0.08)
|
|
|
(0.04)
|
|
(0.15)
|
|
(0.06)
|
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 SHEET
|
|
|
|
06/30/2021
|
|
03/31/2021
|
|
06/30/2020
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
43,350,182
|
|
|
44,146,308
|
|
|
56,247,678
|
Accounts receivable -
net
|
|
|
282,780
|
|
|
281,945
|
|
|
349,450
|
Prepaid
expenses
|
|
|
242,488
|
|
|
393,587
|
|
|
228,794
|
Restricted
cash
|
|
|
300,000
|
|
|
300,000
|
|
|
535,153
|
Other
receivables
|
|
|
52,422
|
|
|
25,937
|
|
|
203,671
|
Other current
assets
|
|
|
154,622
|
|
|
156,622
|
|
|
142,230
|
Total current
assets
|
|
|
44,382,494
|
|
|
45,304,399
|
|
|
57,706,976
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
|
10,000,000
|
|
|
10,000,000
|
|
|
—
|
Property, plant &
equipment - net
|
|
|
48,349
|
|
|
38,860
|
|
|
7,740
|
Intangible assets -
net
|
|
|
9,625
|
|
|
11,596
|
|
|
17,111
|
Prepaid licensing and
royalty fees
|
|
|
73,762
|
|
|
108,878
|
|
|
184,365
|
Other
assets
|
|
|
2,586,685
|
|
|
2,481,910
|
|
|
290,687
|
Total
assets
|
|
|
57,100,915
|
|
|
57,945,643
|
|
|
58,206,879
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
44,870
|
|
|
88,009
|
|
|
69,147
|
Accrued
compensation
|
|
|
279,896
|
|
|
161,287
|
|
|
278,622
|
Accrued
expenses
|
|
|
1,138,777
|
|
|
1,083,293
|
|
|
1,321,262
|
Unearned
revenue
|
|
|
930,026
|
|
|
949,396
|
|
|
1,058,940
|
Other current
liabilities
|
|
|
787,009
|
|
|
740,286
|
|
|
627,162
|
Total current
liabilities
|
|
|
3,180,578
|
|
|
3,022,271
|
|
|
3,355,133
|
Other
liabilities
|
|
|
1,636,271
|
|
|
1,655,437
|
|
|
3,653
|
Total
liabilities
|
|
|
4,816,849
|
|
|
4,677,708
|
|
|
3,358,786
|
Total
equity
|
|
|
52,284,066
|
|
|
53,267,935
|
|
|
54,848,093
|
Total liabilities and
equity
|
|
|
57,100,915
|
|
|
57,945,643
|
|
|
58,206,879
|
GIGAMEDIA
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
06/30/2021
|
|
03/31/2021
|
|
06/30/2020
|
|
06/30/2021
|
|
06/30/2020
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Loss to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(835,987)
|
|
|
(874,774)
|
|
|
(419,469)
|
|
|
(1,710,762)
|
|
|
(705,168)
|
Depreciation
|
|
|
2,920
|
|
|
1,902
|
|
|
535
|
|
|
4,822
|
|
|
889
|
Amortization
|
|
|
2,242
|
|
|
2,010
|
|
|
(2,257)
|
|
|
4,252
|
|
|
2,400
|
Interest
income
|
|
|
(80,184)
|
|
|
(78,595)
|
|
|
(212,881)
|
|
|
(158,779)
|
|
|
(468,600)
|
Interest
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
EBITDA
|
|
|
(911,009)
|
|
|
(949,457)
|
|
|
(634,072)
|
|
|
(1,860,467)
|
|
|
(1,170,479)
|
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SOURCE GigaMedia