TAIPEI, Oct. 31,
2023 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM)
today announced its third-quarter 2023 unaudited financial
results.
Comments from Management
In the third quarter of 2023, GigaMedia reported revenues of
$1.07 million, with a gross profit of
$0.58 million, an operating loss of
$0.89 million and a net loss of
$0.51 million. Total revenues
increased by 4.5% and gross profit by 3.0% if compared to last
quarter, while gross profit margin at 54.4% was slightly lower than
55.2% last quarter.
While this quarter saw the first post-COVID summer vacation in
Taiwan and Hong Kong, where people tended to travel more
and spent less time on digital entertainments, we managed to keep
growth from last quarter and have the net loss reduced.
Third Quarter Overview
- Revenues increased by 4.5% quarter-on-quarter to approximately
$1.07 million from $1.03 million last quarter.
- Consolidated loss from operations for the third quarter of 2023
amounted to $0.89 million,
representing a reduction of loss from $0.92
million last quarter.
- The net asset value was around $4.27 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Third Quarter
GIGAMEDIA 3Q23
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
3Q23
|
|
2Q23
|
|
Change
(%)
|
|
3Q23
|
|
3Q22
|
|
Change
(%)
|
Revenues
|
|
|
1,071
|
|
|
1,025
|
|
|
4.49 %
|
|
|
1,071
|
|
|
1,575
|
|
|
-32.00 %
|
Gross
Profit
|
|
|
583
|
|
|
566
|
|
|
3.00 %
|
|
|
583
|
|
|
949
|
|
|
-38.57 %
|
Loss from
Operations
|
|
|
(893)
|
|
|
(919)
|
|
NM
|
|
|
(893)
|
|
|
(674)
|
|
NM
|
Net Loss
Attributable to GigaMedia
|
|
|
(507)
|
|
|
(562)
|
|
NM
|
|
|
(507)
|
|
|
(869)
|
|
NM
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.05)
|
|
|
(0.05)
|
|
NM
|
|
|
(0.05)
|
|
|
(0.08)
|
|
NM
|
EBITDA (A)
|
|
|
(946)
|
|
|
(982)
|
|
NM
|
|
|
(946)
|
|
|
(1,106)
|
|
NM
|
Cash, Cash
Equivalent and Restricted Cash
|
|
|
38,823
|
|
|
37,775
|
|
|
2.77 %
|
|
|
38,823
|
|
|
39,556
|
|
|
-1.85 %
|
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 2023 were
$1.07 million, representing an
increase of 4.5% compared to $1.03
million in the prior quarter, but decreased by 32.0%
year-over-year from $1.58 million the
same quarter last year.
- Consolidated gross profit increased by 3.0% quarter-on-quarter
to $0.58 million from $0.57 million last quarter, but decreased by
38.6% year-over-year from $0.95
million in the third quarter last year.
- Consolidated loss from operation of the third quarter of 2023
was $0.89 million, representing a
slight decrease in loss from $0.92
million from last quarter.
- Consolidated net loss of the third quarter of 2023 was
$0.51 million compared to
$0.56 million in last quarter.
- Cash, cash equivalents and restricted cash at the end of the
third quarter of 2023 was $38.8
million.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounting to $38.8 million as of September 30, 2023, or $3.51 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of October 31, 2023.
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 2022
Annual Report on Form 20-F filed with the U.S. Securities and
Exchange Commission as referenced below, actual results may differ
materially.
"While the inflation is forecast to decline steadily, consumer
sentiment still appears slow to recover," said GigaMedia CEO
James Huang. "But we are cautiously
optimistic for the coming quarter, where we will be dedicated to
reaching a broader customer base and improving our revenue
generation mechanism."
In the meantime, we will continue reviewing suitable prospects
for strategic investment and acquisition targets to increase
corporate growth and maximize 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 2023 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 2023 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
|
|
|
09/30/2023
|
|
06/30/2023
|
|
09/30/2022
|
|
09/30/2023
|
|
09/30/2022
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,071,363
|
|
|
1,025,056
|
|
|
1,574,971
|
|
|
3,421,771
|
|
|
4,483,833
|
|
|
|
1,071,363
|
|
|
1,025,056
|
|
|
1,574,971
|
|
|
3,421,771
|
|
|
4,483,833
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
Cost of Digital
entertainment service revenues
|
|
|
488,665
|
|
|
458,667
|
|
|
625,992
|
|
|
1,480,467
|
|
|
1,859,268
|
|
|
|
488,665
|
|
|
458,667
|
|
|
625,992
|
|
|
1,480,467
|
|
|
1,859,268
|
Gross
profit
|
|
|
582,698
|
|
|
566,389
|
|
|
948,979
|
|
|
1,941,304
|
|
|
2,624,565
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Product development and
engineering expenses
|
|
|
183,682
|
|
|
188,457
|
|
|
303,838
|
|
|
550,331
|
|
|
947,241
|
Selling and marketing
expenses
|
|
|
440,845
|
|
|
406,876
|
|
|
425,498
|
|
|
1,278,811
|
|
|
1,237,602
|
General and
administrative expenses and others
|
|
|
845,761
|
|
|
890,636
|
|
|
892,368
|
|
|
2,616,052
|
|
|
2,783,658
|
Other
|
|
|
5,774
|
|
|
(101)
|
|
|
820
|
|
|
6,755
|
|
|
1,758
|
|
|
|
1,476,062
|
|
|
1,485,868
|
|
|
1,622,524
|
|
|
4,451,949
|
|
|
4,970,259
|
Loss from
operations
|
|
|
(893,364)
|
|
|
(919,479)
|
|
|
(673,545)
|
|
|
(2,510,645)
|
|
|
(2,345,694)
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
453,205
|
|
|
435,038
|
|
|
245,113
|
|
|
1,292,793
|
|
|
374,523
|
Foreign exchange loss -
net
|
|
|
(236,221)
|
|
|
(135,898)
|
|
|
(635,103)
|
|
|
(372,946)
|
|
|
(1,354,774)
|
Gain on disposal of
investments
|
|
|
76,885
|
|
|
—
|
|
|
—
|
|
|
76,885
|
|
|
—
|
Changes in the fair
value of an instrument recognized at fair value
|
|
|
86,123
|
|
|
52,092
|
|
|
170,010
|
|
|
119,486
|
|
|
181,148
|
Other - net
|
|
|
6,336
|
|
|
6,659
|
|
|
24,785
|
|
|
13,103
|
|
|
46,056
|
|
|
|
386,328
|
|
|
357,891
|
|
|
(195,195)
|
|
|
1,129,321
|
|
|
(753,047)
|
Loss from continuing
operations before income taxes
|
|
|
(507,036)
|
|
|
(561,588)
|
|
|
(868,740)
|
|
|
(1,381,324)
|
|
|
(3,098,741)
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Net loss attributable
to shareholders of GigaMedia
|
|
|
(507,036)
|
|
|
(561,588)
|
|
|
(868,740)
|
|
|
(1,381,324)
|
|
|
(3,098,741)
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.05)
|
|
|
(0.05)
|
|
|
(0.08)
|
|
|
(0.12)
|
|
|
(0.28)
|
Diluted:
|
|
|
(0.05)
|
|
|
(0.05)
|
|
|
(0.08)
|
|
|
(0.12)
|
|
|
(0.28)
|
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
|
|
|
|
|
09/30/2023
|
|
|
06/30/2023
|
|
|
09/30/2022
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
38,510,253
|
|
|
|
37,462,050
|
|
|
|
39,243,562
|
|
Marketable
securities-current
|
|
|
—
|
|
|
|
7,950,000
|
|
|
|
8,132,000
|
|
Accounts receivable -
net
|
|
|
252,757
|
|
|
|
187,385
|
|
|
|
193,988
|
|
Prepaid
expenses
|
|
|
122,981
|
|
|
|
225,334
|
|
|
|
479,308
|
|
Restricted
cash
|
|
|
312,777
|
|
|
|
312,762
|
|
|
|
312,737
|
|
Other
receivables
|
|
|
364,671
|
|
|
|
765,741
|
|
|
|
397,454
|
|
Other current
assets
|
|
|
144,963
|
|
|
|
118,950
|
|
|
|
142,483
|
|
Total current
assets
|
|
|
39,708,402
|
|
|
|
47,022,222
|
|
|
|
48,901,532
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
|
9,432,596
|
|
|
|
2,371,000
|
|
|
|
2,190,000
|
|
Property, plant &
equipment - net
|
|
|
116,433
|
|
|
|
131,758
|
|
|
|
69,648
|
|
Intangible assets -
net
|
|
|
9,849
|
|
|
|
13,188
|
|
|
|
4,313
|
|
Prepaid licensing and
royalty fees
|
|
|
64,788
|
|
|
|
101,919
|
|
|
|
214,820
|
|
Other assets
|
|
|
1,347,570
|
|
|
|
1,510,307
|
|
|
|
1,638,755
|
|
Total assets
|
|
|
50,679,638
|
|
|
|
51,150,394
|
|
|
|
53,019,068
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
29,348
|
|
|
|
28,747
|
|
|
|
39,304
|
|
Accrued
compensation
|
|
|
320,722
|
|
|
|
230,931
|
|
|
|
327,625
|
|
Accrued
expenses
|
|
|
1,005,141
|
|
|
|
855,201
|
|
|
|
1,269,049
|
|
Unearned
revenue
|
|
|
812,083
|
|
|
|
847,887
|
|
|
|
864,491
|
|
Other current
liabilities
|
|
|
720,223
|
|
|
|
718,266
|
|
|
|
785,621
|
|
Total current
liabilities
|
|
|
2,887,517
|
|
|
|
2,681,032
|
|
|
|
3,286,090
|
|
|
|
|
|
|
|
|
|
|
|
Other
liabilities
|
|
|
562,396
|
|
|
|
714,650
|
|
|
|
857,277
|
|
Total
liabilities
|
|
|
3,449,913
|
|
|
|
3,395,682
|
|
|
|
4,143,367
|
|
Total equity
|
|
|
47,229,725
|
|
|
|
47,754,712
|
|
|
|
48,875,701
|
|
Total liabilities and
equity
|
|
|
50,679,638
|
|
|
|
51,150,394
|
|
|
|
53,019,068
|
|
GIGAMEDIA
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Nine months
ended
|
|
|
|
09/30/2023
|
|
|
06/30/2023
|
|
|
09/30/2022
|
|
|
09/30/2023
|
|
|
09/30/2022
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
|
(507,036)
|
|
|
|
(561,588)
|
|
|
|
(868,740)
|
|
|
|
(1,381,324)
|
|
|
|
(3,098,741)
|
|
Depreciation
|
|
|
10,894
|
|
|
|
11,259
|
|
|
|
5,681
|
|
|
|
32,479
|
|
|
|
16,917
|
|
Amortization
|
|
|
2,924
|
|
|
|
3,024
|
|
|
|
2,055
|
|
|
|
9,003
|
|
|
|
6,419
|
|
Interest
income
|
|
|
(453,205)
|
|
|
|
(435,038)
|
|
|
|
(245,113)
|
|
|
|
(1,292,793)
|
|
|
|
(374,522)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(946,423)
|
|
|
|
(982,343)
|
|
|
|
(1,106,117)
|
|
|
|
(2,632,635)
|
|
|
|
(3,449,927)
|
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2023-financial-results-301972669.html
SOURCE GigaMedia