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 October, 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 Third-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: October 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: 2656-8096
	IR@gigamedia.com.tw

 

GigaMedia Announces Third-Quarter 2023

Financial Results

 

TAIPEI, Taiwan, October 31, 2023 – 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

 

 

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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

 

 

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

 

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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.

 

 

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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												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

 

 

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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

 

 

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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	)

 

 

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