TAIPEI, Taiwan, Oct. 31, 2018 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its third-quarter 2018 unaudited
financial results.
Comments from Management
In the third quarter of 2018, total revenues maintained at
approximately $1.7 million,
comparable to last quarter.
"In this quarter, new games have been added in our
female-oriented product line to provide diversity and satisfaction,
but nonetheless, it is the proven success in existing games like
Yume 100 that we laid stress on enhancing and replicating,"
said GigaMedia Limited CEO James
Huang.
"Meanwhile, we continued carrying out the plan of renovating the
legacy casual games as well as re-activating our own vast customer
base, and we expect favorable results to exhibit in the coming
quarters," continued CEO
James Huang. "To our goal of
achieving a long-term balanced growth, it is very essential to
re-invigorate our legacy self-developed games."
Third Quarter Overview
- Revenues maintained at approximately $1.7 million, comparable to the second quarter of
this year.
- Consolidated loss from operations for the third quarter of 2018
amounted to $1.5 million, an increase
in loss by 10.6% from a loss of $1.3
million last quarter.
- The net asset value was around $5.28 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on
browser/mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the third Quarter
GIGAMEDIA 3Q18 UNAUDITED
CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all figures in US$ thousands, except per share
amounts)
|
|
3Q18
|
|
2Q18
|
|
Change
(%)
|
|
3Q18
|
|
3Q17
|
|
Change
(%)
|
Revenues
|
|
|
1,662
|
|
|
1,659
|
|
|
0.18%
|
|
|
1,662
|
|
|
2,304
|
|
|
-27.86%
|
Gross
Profit
|
|
|
694
|
|
|
728
|
|
|
-4.67%
|
|
|
694
|
|
|
1,457
|
|
|
-52.37%
|
Loss from
Operations
|
|
|
(1,484)
|
|
|
(1,342)
|
|
|
NM
|
|
|
(1,484)
|
|
|
(315)
|
|
|
NM
|
Net Loss
Attributable to GigaMedia
|
|
|
(1,083)
|
|
|
(755)
|
|
|
NM
|
|
|
(1,083)
|
|
|
(129)
|
|
|
NM
|
Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.10)
|
|
|
(0.07)
|
|
|
NM
|
|
|
(0.10)
|
|
|
(0.01)
|
|
|
NM
|
EBITDA
(A)
|
|
|
(1,393)
|
|
|
(1,056)
|
|
|
NM
|
|
|
(1,393)
|
|
|
(305)
|
|
|
NM
|
Cash and
Marketable Securities-Current
|
|
|
59,924
|
|
|
60,733
|
|
|
-1.33%
|
|
|
59,924
|
|
|
63,770
|
|
|
-6.03%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 2018 maintained
at $1.7 million approximately the
same as in prior quarter and decreased year-over-year from
$2.3 million to $1.7 million. While revenues from Akaseka
and the legacy casual games declined, the increases in the newly
launched Sengoku, and the long-lived Yume 100 and
Tales Runner made up for the decreases.
- Consolidated gross profit decreased 4.67% quarter-on-quarter
from $0.73 million to $0.70 million and decreased 52.37% year-over-year
from $1.5 million to $0.7 million.
- Consolidated operating expenses were $2.2 million in the third quarter of 2018. An
increase of $0.1 million which is
about 5.2% from the second quarter of 2018. The increase was mainly
due to the increase in marketing expenses for the launch of
Sengoku and the third anniversary of Yume 100.
- Consolidated loss from operation of the third quarter of 2018
was $1.5 million, an increase in loss
by 10.6% from a loss of $1.3 million
in last quarter.
- Consolidated net loss of the third quarter of 2018 was
$1.1 million compared to $0.8 million in last quarter.
- Cash and marketable securities-current as of the end of the
third quarter of 2018 accounted for $59.9
million, decreasing by 1.33% from $60.7 million at the end of the second quarter of
2018.
Financial Position
GigaMedia maintained its solid financial position, with cash,
restricted cash and cash equivalents accounted for $60.4 million as of September 30, 2018, or $5.5 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of October
31, 2018. 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 2017 Annual
Report on Form 20-F filed with the U.S.
Securities and Exchange Commission as referenced
below, actual results may differ materially.
GigaMedia CEO James Huang said:
"In the following quarters, we will put more efforts on improving
productivity in operating of existing games, and especially on
in-house developing and revitalizing our self-developed games."
"While we continue seeking suitable strategic investment and
acquisition targets to increase corporate growth and maximize
shareholders' value, considering recent fluctuations in world
equity market, any opportunities will be approached very
cautiously. Meanwhile, we believe a profitable entertainment
business of ours would certainly give us more leverage and present
more possibilities of synergies when we are entering into a
strategic cooperation and acquisition," 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 2018 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 2018 and its
other filings with the United States Securities and Exchange
Commission.
(Tables to follow)
GIGAMEDIA
LIMITED
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three months
ended
|
|
|
9/30/2018
|
|
6/30/2018
|
|
9/30/2017
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,662,324
|
|
|
1,658,914
|
|
|
2,304,287
|
Other
revenues
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
1,662,324
|
|
|
1,658,914
|
|
|
2,304,287
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
Cost of Digital
entertainment service revenues
|
|
|
968,442
|
|
|
930,421
|
|
|
846,905
|
Cost of other
revenues
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
|
968,442
|
|
|
930,421
|
|
|
846,905
|
Gross
profit
|
|
|
693,882
|
|
|
728,493
|
|
|
1,457,382
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
286,015
|
|
|
300,635
|
|
|
269,539
|
Selling and marketing
expenses
|
|
|
963,444
|
|
|
760,185
|
|
|
601,638
|
General and
administrative expenses
|
|
|
923,288
|
|
|
1,003,359
|
|
|
896,398
|
Other
|
|
|
5,514
|
|
|
6,555
|
|
|
4,515
|
|
|
|
2,178,261
|
|
|
2,070,734
|
|
|
1,772,090
|
Loss from
operations
|
|
|
(1,484,379)
|
|
|
(1,342,241)
|
|
|
(314,708)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
351,262
|
|
|
338,602
|
|
|
208,696
|
Interest
expense
|
|
|
--
|
|
|
--
|
|
|
(9,985)
|
Foreign exchange
(loss) gain - net
|
|
|
49,285
|
|
|
246,830
|
|
|
(13,239)
|
(Loss) Gain on
disposal of property, plant and equipment
|
|
|
--
|
|
|
31
|
|
|
(2)
|
Equity in net loss on
equity method investments
|
|
|
--
|
|
|
--
|
|
|
(105)
|
Impairment loss on
marketable securities and investments
|
|
|
--
|
|
|
--
|
|
|
(233)
|
Other -
net
|
|
|
728
|
|
|
2,122
|
|
|
860
|
|
|
|
401,275
|
|
|
587,585
|
|
|
185,992
|
(Loss) Income from continuing operations before income taxes
|
|
|
(1,083,104)
|
|
|
(754,656)
|
|
|
(128,716)
|
Income tax benefit
(expense)
|
|
|
--
|
|
|
0
|
|
|
(7)
|
(Loss) Income from
continuing operations
|
|
|
(1,083,104
|
|
|
(754,656)
|
|
|
(128,723)
|
Net (loss)
income
|
|
|
(1,083,104
|
|
|
(754,656)
|
|
|
(128,723)
|
Less: Net loss
attributable to noncontrolling interest
|
|
|
--
|
|
|
--
|
|
|
--
|
Net (loss) income
attributable to shareholders of GigaMedia
|
|
|
(1,083,104)
|
|
|
(754,656)
|
|
|
(128,723)
|
(Loss) Earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
|
(0.10)
|
|
|
(0.07)
|
|
|
(0.01
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
|
(0.10)
|
|
|
(0.07)
|
|
|
(0.01
|
Diluted:
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
|
(0.10)
|
|
|
(0.07)
|
|
|
(0.01)
|
Loss from discontinued
operations
|
|
|
0.00
|
|
|
0.00
|
|
|
0.00
|
|
|
|
(0.10)
|
|
|
(0.07)
|
|
|
(0.01)
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,052,235
|
|
|
11,052,235
|
|
|
11,052,235
|
Diluted
|
|
|
11,052,235
|
|
|
11,052,235
|
|
|
11,052,235
|
GIGAMEDIA
LIMITED
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
9/30/2018
|
|
6/30/2018
|
|
9/30/2017
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
59,923,784
|
|
|
60,732,757
|
|
|
63,767,004
|
Marketable securities
- current
|
|
|
--
|
|
|
--
|
|
|
2,617
|
Accounts receivable -
net
|
|
|
835,013
|
|
|
672,143
|
|
|
699,407
|
Prepaid
expenses
|
|
|
237,635
|
|
|
309,952
|
|
|
310,286
|
Restricted
cash
|
|
|
514,770
|
|
|
511,710
|
|
|
503,640
|
Other
receivables
|
|
|
316,540
|
|
|
335,119
|
|
|
495,685
|
Other current
assets
|
|
|
129,114
|
|
|
121,693
|
|
|
155,240
|
Total current
assets
|
|
|
61,956,856
|
|
|
62,683,374
|
|
|
65,933,879
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment - net
|
|
|
147,600
|
|
|
173,051
|
|
|
135,287
|
Intangible assets -
net
|
|
|
41,109
|
|
|
48,473
|
|
|
2,812
|
Prepaid licensing and
royalty fees
|
|
|
1,097,911
|
|
|
1,043,823
|
|
|
516,477
|
Other
assets
|
|
|
278,356
|
|
|
279,616
|
|
|
325,763
|
Total
assets
|
|
|
63,521,832
|
|
|
64,228,337
|
|
|
66,914,218
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
--
|
|
|
--
|
|
|
--
|
Accounts
payable
|
|
|
279,485
|
|
|
244,240
|
|
|
269,316
|
Accrued
compensation
|
|
|
606,547
|
|
|
405,416
|
|
|
565,446
|
Accrued
expenses
|
|
|
2,066,188
|
|
|
2,098,418
|
|
|
2,037,396
|
Unearned
revenue
|
|
|
1,971,039
|
|
|
1,756,877
|
|
|
2,068,262
|
Other current
liabilities
|
|
|
196,516
|
|
|
176,174
|
|
|
223,173
|
Total current
liabilities
|
|
|
5,119,775
|
|
|
4,681,125
|
|
|
5,163,593
|
Other
liabilities
|
|
|
--
|
|
|
--
|
|
|
1,671,511
|
Total
liabilities
|
|
|
5,119,775
|
|
|
4,681,125
|
|
|
6,835,104
|
GigaMedia's
shareholders' equity
|
|
|
58,402,057
|
|
|
59,547,212
|
|
|
60,079,114
|
Noncontrolling
interest
|
|
|
--
|
|
|
--
|
|
|
--
|
Total
equity
|
|
|
58,402,057
|
|
|
59,547,212
|
|
|
60,079,114
|
Total liabilities and
equity
|
|
|
63,521,832
|
|
|
64,228,337
|
|
|
66,914,218
|
GIGAMEDIA
LIMITED
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
|
|
Three months
ended
|
|
|
9/30/2018
|
|
6/30/2018
|
|
9/30/2017
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
|
(1,083,104)
|
|
|
(754,656)
|
|
|
(128,723)
|
Depreciation
|
|
|
25,318
|
|
|
25,563
|
|
|
18,929
|
Amortization
|
|
|
16,516
|
|
|
11,532
|
|
|
3,302
|
Interest
income
|
|
|
(351,262)
|
|
|
(338,602)
|
|
|
(208,696)
|
Interest
expense
|
|
|
--
|
|
|
--
|
|
|
9,985
|
Income tax (benefit)
expense
|
|
|
--
|
|
|
--
|
|
|
7
|
EBITDA
|
|
|
(1,392,532)
|
|
|
(1,056,163)
|
|
|
(305,196)
|
View original
content:http://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2018-financial-results-300741160.html
SOURCE GigaMedia Limited