TAIPEI, Oct. 28,
2022 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM)
today announced its third-quarter 2022 unaudited financial
results.
Comments from Management
In the third quarter of 2022, GigaMedia reported revenues of
$1.58 million, with a gross profit of
$0.95 million, an operating loss of
$0.67 million and a net loss of
$0.87 million. Total revenues
increased by 15.6% if compared to last quarter, and gross profit
margin improved to 60.3% from 56.8% last quarter.
The increase in revenues and improvement in the gross margin was
challenging in such a difficult time when people in Taiwan, Hong
Kong and elsewhere in the world are cutting entertainment
spending as the possible global recession looms.
"In light of the economic downturn starting earlier this year,
we have being carrying out a series of organization changes to
preserve resources and streamline our operations," said GigaMedia
CEO James Huang. "And we have
managed to mitigate the impact and better prepared to deliver
sustainable financial performance."
Third Quarter Overview
- Revenues increased by 15.6% quarter-on-quarter to approximately
$1.58 million from $1.36 million last quarter. The increase was
mainly due to our efforts in promoting during the summer vacation,
Tales Runner, a licensed game we operate in Hong Kong.
- Consolidated loss from operations for the third quarter of 2022
amounted to $0.67 million,
representing a reduction of loss from $0.84
million last quarter.
- The net asset value was around $4.42 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Third Quarter
GIGAMEDIA 3Q22
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
3Q22
|
|
|
2Q22
|
|
|
Change
(%)
|
|
|
3Q22
|
|
3Q21
|
|
|
Change
(%)
|
|
Revenues
|
|
|
1,575
|
|
|
|
1,363
|
|
|
|
15.55
|
%
|
|
|
1,575
|
|
|
1,564
|
|
|
|
0.70
|
%
|
Gross
Profit
|
|
|
949
|
|
|
|
774
|
|
|
|
22.61
|
%
|
|
|
949
|
|
|
877
|
|
|
|
8.21
|
%
|
Loss from
Operations
|
|
|
(674
|
)
|
|
|
(844
|
)
|
|
NM
|
|
|
|
(674
|
)
|
|
(842
|
)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(869
|
)
|
|
|
(1,131
|
)
|
|
NM
|
|
|
|
(869
|
)
|
|
(728
|
)
|
|
NM
|
|
Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.08
|
)
|
|
|
(0.10
|
)
|
|
NM
|
|
|
|
(0.08
|
)
|
|
(0.07
|
)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(1,106
|
)
|
|
|
(1,190
|
)
|
|
NM
|
|
|
|
(1,106
|
)
|
|
(791
|
)
|
|
NM
|
|
Cash, Cash
Equivalent and Restricted Cash
|
|
|
39,556
|
|
|
|
39,631
|
|
|
|
-0.19
|
%
|
|
|
39,556
|
|
|
43,152
|
|
|
|
-8.33
|
%
|
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 third quarter of 2022 were
$1.58 million, representing an
increase of 15.6% compared to $1.36
million in the prior quarter, also increased by 0.7%
year-over-year from $1.56 million the
same quarter last year.
- Consolidated gross profit increased by 22.6%
quarter-on-quarter to $0.95 million
from $0.77 million last quarter, or
increased by 8.2% year-over-year from $0.88
million in the third quarter last year.
- Consolidated loss from operation of the third quarter of
2022 was $0.67 million, representing
a decrease in loss by approximately $0.17
million from last quarter.
- Consolidated net loss of the third quarter of 2022 was
$0.87 million compared to
$1.13 million in last quarter.
- Cash, cash equivalents and restricted cash at the end of
the third quarter of 2022 was $39.6
million.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounting to $39.6 million as of September 30, 2022, or $3.58 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of October 28, 2022.
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 2021
Annual Report on Form 20-F filed with the U.S. Securities and
Exchange Commission as referenced below, actual results may differ
materially.
"The inflation and worsening consumer sentiment is indeed posing
a challenge to our digital entertainment business," said GigaMedia
CEO James Huang, "and we will focus
on cultivating long-term customer loyalty and improving our
productivity. While the economic outlook may look bleak for the
coming quarters, I am confident we can weather the storm and emerge
stronger."
In the meantime, the global economic woes may on the other hand
exhibit good M&A chances for us, as potential targets may be
available at bargain prices. Therefore, we will continue, very
cautiously, seeking suitable strategic investment and acquisition
targets for increasing corporate growth and maximizing 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 third quarter 2022 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 2022 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
|
|
|
|
9/30/2022
|
|
|
6/30/2022
|
|
|
9/30/2021
|
|
|
9/30/2022
|
|
|
9/30/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,574,971
|
|
|
|
1,363,287
|
|
|
|
1,564,208
|
|
|
|
4,483,833
|
|
|
|
4,235,233
|
|
Other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,574,971
|
|
|
|
1,363,287
|
|
|
|
1,564,208
|
|
|
|
4,483,833
|
|
|
|
4,235,233
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Digital
entertainment service revenues
|
|
|
625,992
|
|
|
|
588,907
|
|
|
|
687,198
|
|
|
|
1,859,268
|
|
|
|
1,934,642
|
|
Cost of other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
625,992
|
|
|
|
588,907
|
|
|
|
687,198
|
|
|
|
1,859,268
|
|
|
|
1,934,642
|
|
Gross
profit
|
|
|
948,979
|
|
|
|
774,380
|
|
|
|
877,010
|
|
|
|
2,624,565
|
|
|
|
2,300,591
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development and
engineering expenses
|
|
|
303,838
|
|
|
|
320,965
|
|
|
|
365,732
|
|
|
|
947,241
|
|
|
|
1,084,686
|
|
Selling and marketing
expenses
|
|
|
425,498
|
|
|
|
376,899
|
|
|
|
459,519
|
|
|
|
1,237,602
|
|
|
|
1,233,467
|
|
General and
administrative expenses
|
|
|
892,368
|
|
|
|
920,189
|
|
|
|
893,651
|
|
|
|
2,783,658
|
|
|
|
2,800,317
|
|
Other
|
|
|
820
|
|
|
|
712
|
|
|
|
33
|
|
|
|
1,758
|
|
|
|
4,735
|
|
|
|
|
1,622,524
|
|
|
|
1,618,765
|
|
|
|
1,718,935
|
|
|
|
4,970,259
|
|
|
|
5,123,205
|
|
Loss from
operations
|
|
|
(673,545
|
)
|
|
|
(844,385
|
)
|
|
|
(841,925
|
)
|
|
|
(2,345,694
|
)
|
|
|
(2,822,614
|
)
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
245,113
|
|
|
|
66,575
|
|
|
|
68,084
|
|
|
|
374,523
|
|
|
|
226,863
|
|
Foreign exchange (loss)
gain - net
|
|
|
(635,103
|
)
|
|
|
(380,540
|
)
|
|
|
(32,305
|
)
|
|
|
(1,354,774
|
)
|
|
|
81,477
|
|
Gain on disposal of
investments
|
|
|
—
|
|
|
|
—
|
|
|
|
79,411
|
|
|
|
—
|
|
|
|
79,411
|
|
Changes in the fair
value of an instrument recognized at fair value
|
|
|
170,010
|
|
|
|
11,138
|
|
|
|
—
|
|
|
|
181,148
|
|
|
|
—
|
|
Other - net
|
|
|
24,785
|
|
|
|
16,349
|
|
|
|
(1,292
|
)
|
|
|
46,056
|
|
|
|
(3,925
|
)
|
|
|
|
(195,195
|
)
|
|
|
(286,478
|
)
|
|
|
113,898
|
|
|
|
(753,047
|
)
|
|
|
383,826
|
|
(Loss) Income from
continuing operations before income taxes
|
|
|
(868,740
|
)
|
|
|
(1,130,863
|
)
|
|
|
(728,027
|
)
|
|
|
(3,098,741
|
)
|
|
|
(2,438,788
|
)
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
(Loss) Income from
continuing operations
|
|
|
(868,740
|
)
|
|
|
(1,130,863
|
)
|
|
|
(728,027
|
)
|
|
|
(3,098,741
|
)
|
|
|
(2,438,788
|
)
|
Net (loss)
income
|
|
|
(868,740
|
)
|
|
|
(1,130,863
|
)
|
|
|
(728,027
|
)
|
|
|
(3,098,741
|
)
|
|
|
(2,438,788
|
)
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net (loss) income
attributable to shareholders of GigaMedia
|
|
|
(868,740
|
)
|
|
|
(1,130,863
|
)
|
|
|
(728,027
|
)
|
|
|
(3,098,741
|
)
|
|
|
(2,438,788
|
)
|
(Loss) Earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
|
(0.08
|
)
|
|
|
(0.10
|
)
|
|
|
(0.07
|
)
|
|
|
(0.28
|
)
|
|
|
(0.22
|
)
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
|
(0.08
|
)
|
|
|
(0.10
|
)
|
|
|
(0.07
|
)
|
|
|
(0.28
|
)
|
|
|
(0.22
|
)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
|
(0.08
|
)
|
|
|
(0.10
|
)
|
|
|
(0.07
|
)
|
|
|
(0.28
|
)
|
|
|
(0.22
|
)
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
0.00
|
|
|
|
|
(0.08
|
)
|
|
|
(0.10
|
)
|
|
|
(0.07
|
)
|
|
|
(0.28
|
)
|
|
|
(0.22
|
)
|
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
|
|
9/30/2022
|
|
|
6/30/2022
|
|
|
9/30/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
39,243,562
|
|
|
|
39,317,946
|
|
|
|
42,851,769
|
|
Marketable securities -
current
|
|
|
8,132,000
|
|
|
|
—
|
|
|
|
—
|
|
Accounts receivable -
net
|
|
|
193,988
|
|
|
|
192,716
|
|
|
|
300,895
|
|
Prepaid
expenses
|
|
|
479,308
|
|
|
|
574,021
|
|
|
|
436,201
|
|
Restricted
cash
|
|
|
312,737
|
|
|
|
312,746
|
|
|
|
300,000
|
|
Other
receivables
|
|
|
397,454
|
|
|
|
42,222
|
|
|
|
15,463
|
|
Other current
assets
|
|
|
142,483
|
|
|
|
144,983
|
|
|
|
158,342
|
|
Total current
assets
|
|
|
48,901,532
|
|
|
|
40,584,634
|
|
|
|
44,062,670
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
|
2,190,000
|
|
|
|
10,322,000
|
|
|
|
10,000,000
|
|
Property, plant &
equipment - net
|
|
|
69,648
|
|
|
|
70,913
|
|
|
|
45,427
|
|
Intangible assets -
net
|
|
|
4,313
|
|
|
|
6,718
|
|
|
|
7,376
|
|
Prepaid licensing and
royalty fees
|
|
|
214,820
|
|
|
|
249,965
|
|
|
|
57,030
|
|
Other assets
|
|
|
1,638,755
|
|
|
|
2,155,254
|
|
|
|
2,518,871
|
|
Total assets
|
|
|
53,019,068
|
|
|
|
53,389,484
|
|
|
|
56,691,374
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
39,304
|
|
|
|
31,757
|
|
|
|
40,154
|
|
Accrued
compensation
|
|
|
327,625
|
|
|
|
268,124
|
|
|
|
395,323
|
|
Accrued
expenses
|
|
|
1,269,049
|
|
|
|
1,104,625
|
|
|
|
1,396,646
|
|
Unearned
revenue
|
|
|
864,491
|
|
|
|
824,361
|
|
|
|
912,399
|
|
Other current
liabilities
|
|
|
785,621
|
|
|
|
819,888
|
|
|
|
842,110
|
|
Total current
liabilities
|
|
|
3,286,090
|
|
|
|
3,048,755
|
|
|
|
3,586,632
|
|
Other
liabilities
|
|
|
857,277
|
|
|
|
1,064,777
|
|
|
|
1,518,425
|
|
Total
liabilities
|
|
|
4,143,367
|
|
|
|
4,113,532
|
|
|
|
5,105,057
|
|
GigaMedia's
shareholders' equity
|
|
|
48,875,701
|
|
|
|
49,275,952
|
|
|
|
51,586,317
|
|
Noncontrolling
interest
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Total equity
|
|
|
48,875,701
|
|
|
|
49,275,952
|
|
|
|
51,586,317
|
|
Total liabilities and
equity
|
|
|
53,019,068
|
|
|
|
53,389,484
|
|
|
|
56,691,374
|
|
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
|
9/30/2022
|
|
|
6/30/2022
|
|
|
9/30/2021
|
|
|
9/30/2022
|
|
|
9/30/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
|
(868,740
|
)
|
|
|
(1,130,863
|
)
|
|
|
(728,027
|
)
|
|
|
(3,098,741
|
)
|
|
|
(2,438,788
|
)
|
Depreciation
|
|
|
5,681
|
|
|
|
5,472
|
|
|
|
2,936
|
|
|
|
16,917
|
|
|
|
7,759
|
|
Amortization
|
|
|
2,055
|
|
|
|
2,125
|
|
|
|
2,252
|
|
|
|
6,419
|
|
|
|
6,503
|
|
Interest
income
|
|
|
(245,113
|
)
|
|
|
(66,574
|
)
|
|
|
(68,084
|
)
|
|
|
(374,522
|
)
|
|
|
(226,863
|
)
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(1,106,117
|
)
|
|
|
(1,189,840
|
)
|
|
|
(790,923
|
)
|
|
|
(3,449,927
|
)
|
|
|
(2,651,389
|
)
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2022-financial-results-301662356.html
SOURCE GigaMedia