TAIPEI, May 3, 2021 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its first quarter 2021 unaudited
financial results.
Comments from Management
For the first quarter of 2021, GigaMedia reported revenues of
$1.45 million with a gross profit of
$0.79 million, an operating loss of
$0.90 million and the net loss of
$0.88 million. Total revenues
increased by 2.0% if compared to the previous quarter.
"Our business momentum has slowed since the fourth quarter
2020," said GigaMedia CEO James
Huang, "but as we stick with our strategies of
internally-driven growth and effective marketing, we managed to
sustain growth in revenues and keep costs and expenses in
check."
First Quarter Overview
- Operating revenues increased slightly by
2.0% in quarter-on-quarter comparison, and decreased
by 9.9% year-over-year. The slowdown was primarily due to declines
in certain of our licensed mobile games, where the upgrades and
supports from our Japanese and Korean licensors were severely
hampered by the COVID-19 pandemic.
- Loss from operations increased to $0.90 million from $0.61
million last quarter, and net loss to $0.88 million, from $0.34
million last quarter. The increases were
mainly due to rises in certain general expenses.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games. Unaudited consolidated results of GigaMedia
are summarized in the table below.
For the First Quarter
GIGAMEDIA 1Q21
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all
figures in US$ thousands, except per share
amounts)
|
|
1Q21
|
|
4Q20
|
|
Change
(%)
|
|
|
1Q21
|
|
1Q20
|
|
Change
(%)
|
|
Revenues
|
|
|
1,446
|
|
|
1,418
|
|
|
2.0
|
%
|
|
|
1,446
|
|
|
1,604
|
|
|
(9.9)
|
%
|
Gross
Profit
|
|
|
791
|
|
|
818
|
|
|
(3.3)
|
%
|
|
|
791
|
|
|
927
|
|
|
(14.7)
|
%
|
Loss from
Operations
|
|
|
(901)
|
|
|
(607)
|
|
NM
|
|
|
|
(901)
|
|
|
(640)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(875)
|
|
|
(340)
|
|
NM
|
|
|
|
(875)
|
|
|
(286)
|
|
NM
|
|
Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.08)
|
|
|
(0.03)
|
|
NM
|
|
|
|
(0.08)
|
|
|
(0.03)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(949)
|
|
|
(411)
|
|
NM
|
|
|
|
(949)
|
|
|
(536)
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
44,446
|
|
|
46,002
|
|
|
(3.4)
|
%
|
|
|
44,446
|
|
|
57,311
|
|
|
(22.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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.)
|
First-Quarter Financial Results
- Consolidated revenues for the first quarter of 2021 increased
by 2.0% quarter-on-quarter to $1.45
million, from $1.42 million in
the fourth quarter of 2020, and decreased by 9.9% year-over-year
from $1.60 million in the first
quarter of 2020. The slowdown was primarily due to declines in
certain of our licensed mobile games, where the upgrades and
supports from our Japanese and Korean licensors were severely
hampered by the COVID-19 pandemic.
- Consolidated gross profit decreased to $0.79 million from $0.82
million in last quarter and decreased by 14.70% from
$0.93 million in the same quarter
last year.
- Consolidated operating expenses were $1.69 million in the first quarter of 2021,
representing an increase by $0.27
million quarter-on-quarter, or an increase by $0.13 million from $1.57
million year-over-year. The increase was mainly due to rises
in certain general expenses.
- Net loss for the first quarter of 2021 was $0.87 million, increased from a loss of
$0.34 million in the fourth quarter
of 2020, from a loss of $0.28 million
in the same quarter last year.
- Cash, cash equivalents and restricted cash at the first
quarter-end of 2021 accounted for $44.45
million, which decreased by $1.56
million from the end of 2020.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounting to $44.45 million, or approximately $4.02 per share as of March 31, 2021.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May
3, 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.
"The second quarter of 2021 is already expected to be tough,"
cautioned GigaMedia CEO James Huang,
"but we will continue boosting productivities and enhancing
services for our in-house developed casual games by introducing
fast-paced playability and accelerating the development of our
customer platform."
Meanwhile, our business strategies always include expanding
through mergers and acquisitions. "Including the possible
cooperation with Aeolus Robotics Corporation," said CEO
James Huang, "we will keep pursuing
investment opportunities that are with strategic potentials 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 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
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 first 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.
GigaMedia's digital entertainment service business develops and
operates a suite of digital entertainments in Taiwan and Hong
Kong, with focus on browser/mobile games and casual games.
More information on GigaMedia can be obtained from
www.gigamedia.com.
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
|
|
|
3/31/2021
|
|
12/31/2020
|
|
3/31/2020
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,446,276
|
|
|
1,417,636
|
|
|
1,603,904
|
Other
revenues
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
1,446,276
|
|
|
1,417,636
|
|
|
1,603,904
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service revenues
|
|
|
655,757
|
|
|
599,458
|
|
|
677,194
|
Cost of other
revenues
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
655,757
|
|
|
599,458
|
|
|
677,194
|
Gross
profit
|
|
|
790,519
|
|
|
818,178
|
|
|
926,710
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
345,898
|
|
|
324,404
|
|
|
328,815
|
Selling and marketing
expenses
|
|
|
397,033
|
|
|
466,093
|
|
|
410,475
|
General and
administrative expenses
|
|
|
946,192
|
|
|
634,118
|
|
|
824,442
|
Other
|
|
|
2,599
|
|
|
163
|
|
|
2,984
|
|
|
|
1,691,722
|
|
|
1,424,778
|
|
|
1,566,716
|
Loss from
operations
|
|
|
(901,203)
|
|
|
(606,600)
|
|
|
(640,006)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
78,595
|
|
|
73,403
|
|
|
255,719
|
Foreign exchange
(loss) gain - net
|
|
|
(49,357)
|
|
|
142,951
|
|
|
98,887
|
Other-net
|
|
|
(2,809)
|
|
|
50,256
|
|
|
(298)
|
|
|
|
26,429
|
|
|
266,610
|
|
|
354,308
|
Loss before income
taxes
|
|
|
(874,774)
|
|
|
(339,990)
|
|
|
(285,698)
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
Net loss attributable
to shareholders of GigaMedia
|
|
|
(874,774)
|
|
|
(339,990)
|
|
|
(285,698)
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.08)
|
|
|
(0.03)
|
|
|
(0.03)
|
Diluted:
|
|
|
(0.08)
|
|
|
(0.03)
|
|
|
(0.03)
|
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
|
|
|
3/31/2021
|
|
12/31/2020
|
|
3/31/2020
|
|
|
unaudited
|
|
audited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
44,146,308
|
|
|
45,702,352
|
|
|
56,777,472
|
Accounts receivable -
net
|
|
|
281,945
|
|
|
274,584
|
|
|
355,225
|
Prepaid
expenses
|
|
|
393,587
|
|
|
87,728
|
|
|
276,010
|
Restricted
cash
|
|
|
300,000
|
|
|
300,000
|
|
|
533,436
|
Other
receivables
|
|
|
25,937
|
|
|
3,579
|
|
|
238,396
|
Other current
assets
|
|
|
156,622
|
|
|
157,020
|
|
|
148,757
|
Total current
assets
|
|
|
45,304,399
|
|
|
46,525,263
|
|
|
58,329,296
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
|
10,000,000
|
|
|
10,000,000
|
|
|
—
|
Property, plant &
equipment - net
|
|
|
38,860
|
|
|
21,852
|
|
|
8,117
|
Intangible assets -
net
|
|
|
11,596
|
|
|
3,640
|
|
|
17,965
|
Prepaid licensing and
royalty fees
|
|
|
108,878
|
|
|
130,718
|
|
|
210,530
|
Other
assets
|
|
|
2,481,910
|
|
|
341,701
|
|
|
285,319
|
Total
assets
|
|
|
57,945,643
|
|
|
57,023,174
|
|
|
58,851,227
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
|
|
—
|
|
|
—
|
|
|
—
|
Accounts
payable
|
|
|
88,009
|
|
|
69,931
|
|
|
60,405
|
Accrued
expenses
|
|
|
1,244,580
|
|
|
1,515,712
|
|
|
1,606,501
|
Unearned
revenue
|
|
|
949,396
|
|
|
949,853
|
|
|
1,285,399
|
Other current
liabilities
|
|
|
740,286
|
|
|
387,712
|
|
|
715,877
|
Total current
liabilities
|
|
|
3,022,271
|
|
|
2,923,208
|
|
|
3,668,182
|
Other
liabilities
|
|
|
1,655,437
|
|
|
3,103
|
|
|
7,337
|
Total
liabilities
|
|
|
4,677,708
|
|
|
2,926,311
|
|
|
3,675,519
|
Total
equity
|
|
|
53,267,935
|
|
|
54,096,863
|
|
|
55,175,708
|
Total liabilities and
equity
|
|
|
57,945,643
|
|
|
57,023,174
|
|
|
58,851,227
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
Three months
ended
|
|
|
3/31/2021
|
|
12/31/2020
|
|
3/31/2020
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(874,774)
|
|
|
(339,990)
|
|
|
(285,698)
|
Depreciation
|
|
|
1,902
|
|
|
1,192
|
|
|
354
|
Amortization
|
|
|
2,010
|
|
|
1,252
|
|
|
4,657
|
Interest
income
|
|
|
(78,595)
|
|
|
(73,403)
|
|
|
(255,719)
|
Interest
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
Income tax
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
EBITDA
|
|
|
(949,457)
|
|
|
(410,949)
|
|
|
(536,406)
|
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SOURCE GigaMedia Limited