TAIPEI, Taiwan, April 24,
2017 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today
announced its unaudited financial results for the fourth quarter
and full year of 2016.
"2016 was a year full of challenging competitions in the gaming
industry in Taiwan. With the
competitor among the world and the booming business in China, both our headquarter team and gaming
sector unit worked very hard to seek suitable acquisition or
partnership opportunities, and catch onto market trend of entering
female niche market in order to keep up the revenue growth.
Yume 100, launched in 2015, has continued the great
performance in 2016. It brought in $3.8
million during 2016 which represented 42% of the revenue
from games. In December 2016, we
licensed in Dragon, due to the fiscal period, we are not
able to see the results right in the fourth quarter of 2016, but we
are all eager to see its performance in the first quarter of 2017
and expect we will have a good start for 2017.
Apart from keeping up the revenue growth, we continued to
curtail our operating cost and expense. Comparing the year 2015 and
2016, the losses from operation reduced significantly, which also
helped the Company to remain in good financial health as we can see
the Company's full year gross profit had increased approximately
255% from $1.4 million to
$4.8 million.
Enhancing shareholder value is the most important to the
Company, the management team and the Board also carefully evaluated
several business opportunities to widen our revenue streams. We
look forward to updating our new progress to our shareholders
soon," stated GigaMedia Limited
Chief Executive Officer Collin
Hwang.
Fourth Quarter and Full Year Overview
- Fourth quarter gross margin rate increased approximately 13%
year-over-year from 42.66% to 48.14%, and the full year gross
margin rate was 53.87% which increased 305% from the year
before.
- Consolidated operating expenses for the fourth quarter were
$5.4 million which included
$2.3 million on selling and marketing
for new game launches and $1.9
million on impairment loss.
- General and administrative expenses decreased 12%
quarter-on-quarter and 30% year-over-year to a record low.
- Consolidated loss from operations for the fourth
quarter of 2016 amounted to $4.4 million, a decrease of
41% from $7.5 million a year before. With the
non-operating income of $0.5 million
and income tax benefit of $1.1
million, net loss came to $2.8
million in the fourth quarter.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games.
GigaMedia's online games business FunTown develops and operates a
suite of games in Taiwan and
Hong Kong, with focus on
browser/mobile games and social casino games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Fourth Quarter
GIGAMEDIA
4Q16 UNAUDITED CONSOLIDATED FINANCIAL
RESULTS
|
(unaudited, all
figures in US$ thousands, except
per share amounts)
|
|
4Q16
|
|
3Q16
|
|
Change
(%)
|
|
4Q16
|
|
4Q15
|
|
Change
(%)
|
Revenues
|
|
2,038
|
|
2,457
|
|
-17.1%
|
|
2,038
|
|
2,356
|
|
-13.5%
|
Gross
Profit
|
|
981
|
|
1,424
|
|
-31.1%
|
|
981
|
|
1,005
|
|
-2.4%
|
Loss from
Operations
|
|
(4,422)
|
|
(943)
|
|
-368.9%
|
|
(4,422)
|
|
(7,538)
|
|
41.3%
|
Net Loss
Attributable to GigaMedia
|
|
(2,807)
|
|
(2,173)
|
|
-29.2%
|
|
(2,807)
|
|
(8,557)
|
|
67.2%
|
Net Loss Per Share
Attributable to
GigaMedia, Diluted
|
|
(0.25)
|
|
(0.20)
|
|
-25.0%
|
|
(0.25)
|
|
(0.77)
|
|
67.5%
|
EBITDA
(A)
|
|
(3,948)
|
|
(2,152)
|
|
-83.5%
|
|
(3,948)
|
|
(8,870)
|
|
55.5%
|
Cash and
Marketable Securities-
Current
|
|
65,713
|
|
67,730
|
|
-3.0%
|
|
65,713
|
|
71,436
|
|
-8.0%
|
(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.)
Fourth-Quarter Financial Results
- Consolidated revenues for the fourth quarter of 2016 were
$2 million; this compared to
$2.5 million in the third quarter of
2016 and $2.4 million in the fourth
quarter of 2015.
- Consolidated gross profit for the fourth quarter of 2016 was
$0.98 million; this compared to
$1.4 million in the third quarter of
2016 and $1 million in the fourth
quarter of 2015.
- Consolidated loss from operation was $4.4 million in the fourth quarter of 2016.
Comparing with the third quarter of 2016, the expense increased
from $0.9 million to $4.4 million, primarily due to the expense on
selling and marketing of our new game Dragon which was
launched in December 2016. However,
from year-over-year comparison, the expense decreased more than
40%, down from $7.5 million owing to
lower general and administrative expense, impairment and
termination losses.
- Consolidated non-operating expenses/income of the fourth
quarter of 2016 was a gain of $0.5
million compared to a loss of $1.2
million in the third quarter of 2016 and a loss of
$1.4 million of the fourth quarter of
2015. The result mainly benefited from the reversal of loss on
investments and foreign exchange.
- Consolidated net loss for the fourth quarter of 2016 was
$2.8 million, compared to a loss of
$2.2 million in the third quarter of
2016 and a loss of $8.6 million of
the fourth quarter of 2015, mainly as the Company has successfully
cut down the operating loss year-over-year.
For the Full Year
GIGAMEDIA
FY16 UNAUDITED CONSOLIDATED FINANCIAL
RESULTS
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
FY16
|
|
FY15
|
|
Change
(%)
|
Revenues
|
|
8,971
|
|
10,251
|
|
-12.5%
|
Gross
Profit
|
|
4,833
|
|
1,362
|
|
254.8%
|
Loss from
Operations
|
|
(7,131)
|
|
(19,995)
|
|
64.3%
|
Net Loss
Attributable to GigaMedia
|
|
(6,067)
|
|
(2,243)
|
|
-170.5%
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
(0.55)
|
|
(0.20)
|
|
-175.0%
|
EBITDA
(A)
|
|
(7,164)
|
|
(2,278)
|
|
-214.5%
|
Cash and
Marketable Securities-Current
|
|
65,713
|
|
71,436
|
|
-8.0%
|
Full Year Financial Results
- Consolidated revenues for the full year of 2016 were
approximately $9 million; this
compared to $10 million in the year
of 2015. The $1 million difference
reflects the revenue from cloud business.
- Consolidated gross profit for the full year of 2016 was
$4.8 million, an increase of 255%
from $1.4 million for the full year
of 2015 owing to lower operating cost on both gaming and cloud
sectors.
- Consolidated loss from operation was $7.1 million in the full year of 2016. The
expense decreased 64.3% from almost $20
million in the year of 2015. The Company successfully cut
down the expenses on selling and marketing, general and
administrative, and impairment and contract termination.
- Consolidated non-operating expenses/income of the full year of
2016 was a loss of $0.09 million
compared to a gain of $17.3 million
in the full year of 2015. The gain in 2015 primarily was from sales
of marketable securities sales of XL Games and Joy City.
- Consolidated net loss was $6.1
million in the full year of 2016 and a loss of $2.2 million of 2015. The loss in 2015 would be
higher up to approximately $22.2
million if the gain of $19.9
million from non-operating income of sales of marketable
securities was excluded.
Financial Position
As of December 31, 2016, GigaMedia
had $66.2 million in cash, restricted
cash and marketable securities-current, approximately $6 per share, compared to $68.7 million at the end of the third quarter of
2016, which mostly reflecting the net cash used in operating
activities. Short-term debt was $2.5
million at the end of 2016, a decrease of 59% from
$6.1 million year-over-year.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of April 24, 2017. 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 2015 Annual
Report on Form 20-F filed with the U.S. Securities and Exchange
Commission as referenced below, actual results may differ
materially.
As of 31 December, 2016, besides
our self-developed social casino games and one PC game Tales
Runner, GigaMedia has 4 licensed games online, namely
Dragon, Yume 100, Shoumetsu Toshi and
JJHero. Our mobile and social casino games have brought in
approximately $9 million in 2016. We
continue providing new events and upgrading systems for our gamers
in order to create better gaming atmosphere, at the same time we
aim to reach higher pay rate and ARPPU (average revenue per paying
user) to support future growth for the Company.
Due to the expense on sales and marketing in the fourth quarter,
the management expects to see revenue growth in the first quarter
of 2017. In the coming year, the Company also expects to acquire
more players and steady revenue growth through new games launches
and suitable investments.
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 fourth quarter and the full year 2016
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 online games. GigaMedia's online games
business develops and operates a suite of games in Taiwan and Hong
Kong, with focus on browser/mobile games and social casino
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 2016 and its
other filings with the United States Securities and Exchange
Commission.
For further
information contact:
|
Annie Sun
|
Investor Relations
Department
|
Country/City Code 8862
Tel: 2656-8096
|
ir@gigamedia.com.tw
|
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
12/31/2016
|
|
09/30/2016
|
|
12/31/205
|
|
12/31/2016
|
|
12/3/2015
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
2,038,051
|
|
2,457,165
|
|
2,151,598
|
|
8,943,964
|
|
8,544,926
|
Other
revenues
|
|
137
|
|
302
|
|
204,215
|
|
27,341
|
|
1,706,069
|
|
|
2,038,188
|
|
2,457,467
|
|
2,355,813
|
|
8,971,305
|
|
10,250,995
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues
|
|
1,057,020
|
|
1,032,941
|
|
1,043,327
|
|
4,109,541
|
|
7,017,451
|
Cost of other
revenues
|
|
143
|
|
315
|
|
307,688
|
|
28,570
|
|
1,871,227
|
|
|
1,057,163
|
|
1,033,256
|
|
1,351,015
|
|
4,138,111
|
|
8,888,678
|
Gross
profit
|
|
981,025
|
|
1,424,211
|
|
1,004,798
|
|
4,833,194
|
|
1,362,317
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
330,895
|
|
418,748
|
|
190,547
|
|
1,045,182
|
|
687,961
|
Selling and marketing
expenses
|
|
2,311,585
|
|
985,433
|
|
2,057,035
|
|
5,512,695
|
|
8,655,713
|
General and
administrative expenses
|
|
846,013
|
|
962,576
|
|
1,212,800
|
|
3,491,302
|
|
5,761,822
|
Impairment
losses
|
|
1,914,565
|
|
-
|
|
3,082,171
|
|
1,914,565
|
|
4,251,803
|
Other
|
|
-
|
|
-
|
|
2,000,000
|
|
-
|
|
2,000,000
|
|
|
5,403,058
|
|
2,366,757
|
|
8,542,553
|
|
11,963,744
|
|
21,357,299
|
Loss from
operations
|
|
(4,422,033)
|
|
(942,546)
|
|
(7,537,755)
|
|
(7,130,550)
|
|
(19,994,982)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
84,383
|
|
69,823
|
|
62,201
|
|
302,515
|
|
333,207
|
Gain on sales of
marketable securities
|
|
-
|
|
-
|
|
(81,744)
|
|
-
|
|
19,939,125
|
Interest
expense
|
|
(11,831)
|
|
(16,045)
|
|
(27,413)
|
|
(81,446)
|
|
(181,892)
|
Foreign exchange
(loss) gain - net
|
|
56,878
|
|
(193,649)
|
|
(17,113)
|
|
(300,651)
|
|
(397,259)
|
(Loss) gain on
disposal of property, plant and equitment
|
|
(39,709)
|
|
8,771
|
|
90
|
|
751,133
|
|
90
|
Equity in net
earnings (loss) on equity method investments
|
|
264,979
|
|
(1,117,217)
|
|
(47,110)
|
|
(1,730,872)
|
|
(600,045)
|
Changes in the fair
value of an instrument recognized at fair value
|
|
-
|
|
-
|
|
81,630
|
|
-
|
|
10,078
|
Gain (loss) on
disposal of investment
|
|
25,894
|
|
9,125
|
|
(365)
|
|
848,629
|
|
37,000
|
Impariment loss on
marketable securities and investments
|
|
-
|
|
-
|
|
(1,289,779)
|
|
-
|
|
(1,289,779)
|
Other
|
|
88,655
|
|
8,518
|
|
(100,404)
|
|
125,532
|
|
(557,480)
|
|
|
469,249
|
|
(1,230,674)
|
|
(1,420,007)
|
|
(85,160)
|
|
17,293,045
|
Loss from continuing
operations before income taxes
|
|
(3,952,784)
|
|
(2,173,220)
|
|
(8,957,762)
|
|
(7,215,710)
|
|
(2,701,937)
|
Income tax
benefit
|
|
1,146,193
|
|
25
|
|
400,866
|
|
1,148,723
|
|
414,262
|
Loss from continuing
operations
|
|
(2,806,591)
|
|
(2,173,195)
|
|
(8,556,896)
|
|
(6,066,987)
|
|
(2,287,675)
|
Net income
(loss)
|
|
(2,806,591)
|
|
(2,173,195)
|
|
(8,556,896)
|
|
(6,066,987)
|
|
(2,287,675)
|
Less: Net loss
attributable to noncontrolling interest
|
|
-
|
|
-
|
|
(445)
|
|
-
|
|
45,100
|
Net income (loss)
attributable to shareholders of GigaMedia
|
|
(2,806,591)
|
|
(2,173,195)
|
|
(8,557,341)
|
|
(6,066,987)
|
|
(2,242,575)
|
(Loss) earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
Loss from continuing
operations
|
|
(0.25)
|
|
(0.20)
|
|
(0.77)
|
|
(0.55)
|
|
(0.20)
|
Loss from
discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
(0.25)
|
|
(0.20)
|
|
(0.77)
|
|
(0.55)
|
|
(0.20)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
(0.25)
|
|
(0.20)
|
|
(0.77)
|
|
(0.55)
|
|
(0.20)
|
Loss from
discontinued operations
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
(0.25)
|
|
(0.20)
|
|
(0.77)
|
|
(0.55)
|
|
(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
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
12/31/2016
|
|
9/30/2016
|
|
12/31/2015
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
65,710,816
|
|
67,726,267
|
|
71,432,293
|
Marketable securities
- current
|
|
2,617
|
|
3,830
|
|
3,830
|
Accounts receivable -
net
|
|
870,785
|
|
1,245,375
|
|
1,246,371
|
Prepaid
expenses
|
|
547,818
|
|
445,515
|
|
545,200
|
Restricted
cash
|
|
500,000
|
|
1,004,110
|
|
1,000,000
|
Other
receivables
|
|
1,099,183
|
|
46,870
|
|
45,971
|
Other current
assets
|
|
151,358
|
|
188,209
|
|
225,086
|
Total current
assets
|
|
68,882,577
|
|
70,660,176
|
|
74,498,751
|
|
|
|
|
|
|
|
Investments
|
|
72,052
|
|
1,273,018
|
|
4,523,940
|
Property, plant &
equipment - net
|
|
6,605
|
|
549,459
|
|
1,390,711
|
Intangible assets -
net
|
|
-
|
|
83,623
|
|
87,710
|
Prepaid licensing and
royalty fees
|
|
1,020,034
|
|
1,536,574
|
|
238,611
|
Other
assets
|
|
346,072
|
|
426,742
|
|
455,216
|
Total
assets
|
|
70,327,340
|
|
74,529,592
|
|
81,194,939
|
Liabilities and
equity
|
|
|
|
|
|
|
Short-term
borrowings
|
|
2,480,620
|
|
2,551,020
|
|
6,092,917
|
Accounts
payable
|
|
265,966
|
|
409,812
|
|
319,601
|
Accrued
compensation
|
|
210,083
|
|
615,666
|
|
759,260
|
Accrued
expenses
|
|
3,827,905
|
|
2,456,071
|
|
3,036,636
|
Unearned
revenue
|
|
1,867,623
|
|
2,091,888
|
|
1,750,253
|
Other current
liabilities
|
|
346,036
|
|
1,761,767
|
|
1,523,023
|
Total current
liabilities
|
|
8,998,233
|
|
9,886,224
|
|
13,481,690
|
Other
liabilities
|
|
1,671,511
|
|
1,712,015
|
|
1,722,190
|
Total
liabilities
|
|
10,669,744
|
|
11,598,239
|
|
15,203,880
|
GigaMedia's
shareholders' equity
|
|
59,657,596
|
|
62,961,353
|
|
65,991,059
|
Noncontrolling
interest
|
|
-
|
|
-
|
|
-
|
Total
equity
|
|
59,657,596
|
|
62,961,353
|
|
65,991,059
|
Total liabilities and
equity
|
|
70,327,340
|
|
74,559,592
|
|
81,194,939
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
Three months
ended
|
|
Twelve months
ended
|
|
|
12/31/2016
|
|
09/30/2016
|
|
12/31/205
|
|
12/31/2016
|
|
12/3/2015
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
(2,806,591)
|
|
(2,173,195)
|
|
(8,557,341)
|
|
(6,066,987)
|
|
(2,242,575)
|
Depreciation
|
|
50,414
|
|
44,713
|
|
66,455
|
|
162,145
|
|
294,042
|
Amortization
|
|
26,967
|
|
29,832
|
|
56,793
|
|
110,606
|
|
236,076
|
Interest
income
|
|
(84,383)
|
|
(69,823)
|
|
(62,201)
|
|
(302,515)
|
|
(333,186)
|
Interest
expense
|
|
11,831
|
|
16,045
|
|
27,418
|
|
81,446
|
|
181,429
|
Income tax (benefit)
expense
|
|
(1,146,193)
|
|
(25)
|
|
(400,866)
|
|
(1,148,723)
|
|
(414,262)
|
EBITDA
|
|
(3,947,955)
|
|
(2,152,453)
|
|
(8,869,742)
|
|
(7,164,028)
|
|
(2,278,476)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2016-financial-results-300444129.html
SOURCE GigaMedia Limited