GIGM GigaMedia Ltd

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15D-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of July, 2023

Commission File Number: 000-30540

 

GIGAMEDIA LIMITED

8F, No.22, Lane 407, Section 2, Tiding Boulevard

Neihu District

Taipei, Taiwan (R.O.C.)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

Form 20-F [ x ] Form 40-F [ ]

 

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

 

Yes [ ] No [ x ]

 

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b) :82- .)

 

GIGAMEDIA LIMITED is submitting under cover of Form 6-K:

GigaMedia Announces Second-Quarter 2023 Financial Results (attached hereto as Exhibit 99.1)

 

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	GigaMedia Limited
	(Registrant)
Date: July 31, 2023	By: /s/ HUANG, CHENG-MING
	(Signature)
	Name: HUANG, CHENG-MING
	Title: Chief Executive Officer

 

 

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Exhibit 99.1

 

FOR IMMEDIATE RELEASE				For further information contact:
				Investor Relations Department
				Country/City Code 8862 Tel: 2656-8000
				IR@gigamedia.com.tw

 

GigaMedia Announces Second-Quarter 2023

Financial Results

 

TAIPEI, Taiwan, July 31, 2023 – GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2023 unaudited financial results.

Comments from Management

In the second quarter of 2023, GigaMedia reported revenues of $1.03 million, with a gross profit $0.57 million, an operating loss of $0.92 million and the net loss of $0.56 million. Total revenues decreased by 22.6% if compared to the previous quarter.

 

The decrease in revenues was mainly as a result of seasonality, as the second quarter is usually a slower season than the first. Currently we focused on fine-tuning the operation of our casual games and customer platform for upcoming summer vacation.

 

Second Quarter Overview

 

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.

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Unaudited consolidated results of GigaMedia are summarized in the table below.

For the Second Quarter

 

GIGAMEDIA 2Q23 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)		2Q23				1Q23				Change (%)				2Q23				2Q22				Change (%)
Revenues			1,025				1,325				-22.64	%			1,025				1,363				-24.80	%
Gross Profit			566				792				-28.54	%			566				774				-26.87	%
Loss from Operations			(919	)			(698	)		NM					(919	)			(844	)		NM
Net Loss Attributable to GigaMedia			(562	)			(313	)		NM					(562	)			(1,131	)		NM
Net Loss Per Share Attributable to GigaMedia, Diluted			(0.05	)			(0.03	)		NM					(0.05	)			(0.10	)		NM
EBITDA (A)			(982	)			(704	)		NM					(982	)			(1,190	)		NM
Cash, Cash Equivalent and Restricted Cash			37,775				38,119				-0.90	%			37,775				39,631				-4.68	%

 

NM= Not Meaningful

 

 

Second-Quarter Financial Results

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounted to $37.8 million, or $3.42 per share, as of June 30, 2023.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of July 31, 2023. 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 2022 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

 

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“In the second half of 2023, we will dedicate ourselves to boosting the productivity of our products and services. GigaMedia will stick to the strategy of pursuing healthy growth with a lean operation while seeking for strategic expansion and new business,” stated GigaMedia CEO James Huang.

 

As for new business, our management continues evaluating and pursuing prospects of strategic investment targets that 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 2023 performance upon the release, investors may send the questions via email to IR@gigamedia.com.tw, and the responses will be replied individually.

 

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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)

 

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GIGAMEDIA LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

		Three months ended												Six months ended
		06/30/2023				03/31/2023				06/30/2022				06/30/2023				06/30/2022
		unaudited				unaudited				unaudited				unaudited				unaudited
		USD				USD				USD				USD				USD
Operating revenues
Digital entertainment service revenues			1,025,056				1,325,352				1,363,287				2,350,408				2,908,862
			1,025,056				1,325,352				1,363,287				2,350,408				2,908,862
Operating costs
Cost of Digital entertainment service revenues			458,667				533,136				588,907				991,803				1,233,276
			458,667				533,136				588,907				991,803				1,233,276
Gross profit			566,389				792,216				774,380				1,358,605				1,675,586
Operating expenses
Product development and engineering expenses			188,457				178,192				320,965				366,649				643,403
Selling and marketing expenses			406,876				431,089				376,899				837,965				812,104
General and administrative expenses and others			890,636				879,655				920,190				1,770,291				1,891,290
Other			(101	)			1,082				712				981				938
			1,485,868				1,490,018				1,618,766				2,975,886				3,347,735
Loss from operations			(919,479	)			(697,802	)			(844,386	)			(1,617,281	)			(1,672,149	)
Non-operating income (expense)
Interest income			435,038				404,550				66,576				839,588				129,410
Foreign exchange loss - net			(135,898	)			(826	)			(380,540	)			(136,724	)			(719,671	)
Changes in the fair value of an instrument recognized at fair value			52,092				(18,729	)			11,138				33,363				11,138
Other - net			6,659				107				16,349				6,766				21,271
			357,891				385,102				(286,477	)			742,993				(557,852	)
Loss from continuing operations before income taxes			(561,588	)			(312,700	)			(1,130,863	)			(874,288	)			(2,230,001	)
Income tax expense			—				—				—				—				—
Net loss attributable to shareholders of GigaMedia			(561,588	)			(312,700	)			(1,130,863	)			(874,288	)			(2,230,001	)
Loss per share attributable to GigaMedia
Basic:			(0.05	)			(0.03	)			(0.10	)			(0.08	)			(0.20	)
Diluted:			(0.05	)			(0.03	)			(0.10	)			(0.08	)			(0.20	)
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

 

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GIGAMEDIA LIMITED

CONSOLIDATED BALANCE SHEET

		06/30/2023				03/31/2023				06/30/2022
		unaudited				unaudited				unaudited
		USD				USD				USD
Assets
Current assets
Cash and cash equivalents			37,462,050				37,806,540				39,317,946
Marketable securities-current			7,950,000				7,950,000				—
Accounts receivable - net			187,385				154,890				192,716
Prepaid expenses			225,334				368,322				574,021
Restricted cash			312,762				312,739				312,746
Other receivables			765,741				766,871				42,222
Other current assets			118,950				122,895				144,983
Total current assets			47,022,222				47,482,257				40,584,634
Marketable securities - noncurrent			2,371,000				2,371,000				10,322,000
Property, plant & equipment - net			131,758				146,094				70,913
Intangible assets - net			13,188				16,537				6,718
Prepaid licensing and royalty fees			101,919				140,850				249,965
Other assets			1,510,307				1,546,465				2,155,254
Total assets			51,150,394				51,703,203				53,389,484
Liabilities and equity
Accounts payable			28,747				78,604				31,757
Accrued compensation			230,931				133,645				268,124
Accrued expenses			855,201				878,269				1,104,625
Unearned revenue			847,887				871,981				824,361
Other current liabilities			718,266				636,631				819,888
Total current liabilities			2,681,032				2,599,130				3,048,755
Other liabilities			714,650				793,946				1,064,777
Total liabilities			3,395,682				3,393,076				4,113,532
Total equity			47,754,712				48,310,127				49,275,952
Total liabilities and equity			51,150,394				51,703,203				53,389,484

 

 

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GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

		Three months ended												Six months ended
		06/30/2023				03/31/2023				06/30/2022				06/30/2023				06/30/2022
		unaudited				unaudited				unaudited				unaudited				unaudited
		USD				USD				USD				USD				USD
Reconciliation of Net Income (Loss) to EBITDA
Net income (loss) attributable to GigaMedia			(561,588	)			(312,700	)			(1,130,863	)			(874,288	)			(2,230,001	)
Depreciation			11,259				10,326				5,472				21,585				11,236
Amortization			3,024				3,054				2,125				6,078				4,364
Interest income			(435,038	)			(404,550	)			(66,577	)			(839,588	)			(129,409	)
Interest expense			—				—				—				—				—
Income tax (benefit) expense			—				—				—				—				—
EBITDA			(982,343	)			(703,870	)			(1,189,843	)			(1,686,213	)			(2,343,810	)

 

 

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