TAIPEI, April 30, 2020 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its first-quarter 2020 unaudited
financial results.
Comments from Management
For the first quarter of 2020, GigaMedia reported revenues of
$1.60 million, with a gross profit of
$0.93 million, an operating loss of
$0.64 million and the net loss of
$0.29 million. Total revenues
increased by 6.6% if compared to the previous quarter, and net loss
was similar.
"The pandemic of COVID-19 only mildly affected our operations in
Taiwan and Hong Kong," said GigaMedia CEO James Huang. "While it has indeed caused
disruptions to our offline marketing and operating activities, we
managed to mitigate its impact, and continued improving the
productivity in our existing products and making progress in
developing new offerings."
First Quarter Overview
- Operating revenue increased by $0.10 million or 6.6% in
quarter-on-quarter comparison, and increased by 8.2% in
year-over-year comparison.
- Loss from operations amounted to approximately $0.64 million and net loss approximately
$0.29 million, comparable to the
fourth quarter of 2019 and slightly improved when compared with the
same quarter last year.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games. Unaudited consolidated results of GigaMedia
are summarized in the table below.
For the First Quarter
GIGAMEDIA 1Q20
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, in US$ thousands,
except for percentages and per
share amounts)
|
|
1Q20
|
|
|
4Q19
|
|
|
Change
(%)
|
|
|
1Q20
|
|
|
1Q19
|
|
|
Change
(%)
|
|
Revenues
|
|
$
|
1,604
|
|
|
$
|
1,504
|
|
|
6.6
|
%
|
|
$
|
1,604
|
|
|
$
|
1,483
|
|
|
8.2
|
%
|
Gross
Profit
|
|
|
927
|
|
|
|
1,025
|
|
|
(9.6)
|
%
|
|
|
927
|
|
|
|
738
|
|
|
25.6
|
%
|
Loss from
Operations
|
|
|
(640)
|
|
|
|
(399)
|
|
|
NM
|
|
|
|
(640)
|
|
|
|
(949)
|
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(286)
|
|
|
|
(271)
|
|
|
NM
|
|
|
|
(286)
|
|
|
|
(532)
|
|
|
NM
|
|
Loss Per Share
Attributable to GigaMedia,
Diluted
|
|
|
(0.03)
|
|
|
|
(0.02)
|
|
|
NM
|
|
|
|
(0.03)
|
|
|
|
(0.05)
|
|
|
NM
|
|
EBITDA(A)
|
|
|
(536)
|
|
|
|
(574)
|
|
|
NM
|
|
|
|
(536)
|
|
|
|
(876)
|
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
57,311
|
|
|
|
58,274
|
|
|
(1.7)
|
%
|
|
|
57,311
|
|
|
|
58,494
|
|
|
(2.0)
|
%
|
|
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 2020 increased
by 6.6% quarter-on-quarter to $1.60
million, from $1.50 million in
the fourth quarter of 2019, or by 8.2% year-over-year from
$1.48 million in the first quarter of
2019.
- Consolidated gross profit decreased to $0.93 million from $1.03
million in last quarter but increased by 25.6% from
$0.74 million in the same quarter
last year.
- Consolidated operating expenses were $1.57 million in the first quarter of 2020,
representing an increase by $0.14
million quarter-on-quarter, or a decrease by $0.12 million from $1.69
million year-over-year.
- Loss from operation for the first quarter of 2020 was
approximately $0.64 million,
comparable to a loss of $0.40 million
last quarter and approximately a loss of $0.95 million in the first quarter of 2019.
- Net loss for the first quarter of 2020 was $0.29 million, approximately comparable to such
amount in the fourth quarter of 2019, and improved by $0.25 million when compared with the net loss of
$0.53 million in the same quarter
last year.
- Cash, cash equivalents and restricted cash at the first
quarter-end of 2020 accounted for $57.31
million, which decreased by $0.96
million from the end of 2019.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounting to $57.31 million, or approximately $5.19 per share as of March 31, 2020.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of April
30, 2020. 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 2019
Annual Report on Form 20-F filed with the U.S. Securities and
Exchange Commission as referenced below, actual results may differ
materially.
In following quarters, we will continue developing new offerings
to enhance the variety of our product lines, while our marketing
strategies will adjust swiftly, as in the current coronavirus
situation, stay-home requirement may boost sales of online business
on the one hand, but prevailing economic uncertainties and weakened
consumer confidence may discourage spending on entertainment on the
other hand.
"In this time of uncertainty, we don't just wait out the storm.
We practice frugality and adapt proactively while focusing on
sharpening our core competence," stated CEO James Huang, "so that we will get well prepared
when the storm is over."
Meanwhile, our business strategies always include expanding
through mergers and acquisitions. "We will also continue reviewing
potential targets that have strategic capacity to accelerate our
growth and enhance shareholders' value," said CEO James Huang.
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 2020 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 2020 and its
other filings with the United States Securities and Exchange
Commission.
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three months
ended
|
|
3/31/2020
|
|
12/31/2019
|
|
3/31/2019
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
$
|
1,603,904
|
|
$
|
1,503,848
|
|
$
|
1,483,233
|
Operating
costs
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service revenues
|
|
677,194
|
|
|
479,341
|
|
|
744,901
|
Gross
profit
|
|
926,710
|
|
|
1,024,507
|
|
|
738,332
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
328,815
|
|
|
213,241
|
|
|
320,494
|
Selling and marketing
expenses
|
|
410,475
|
|
|
427,090
|
|
|
526,003
|
General and
administrative expenses
|
|
824,442
|
|
|
571,562
|
|
|
835,987
|
Impairment
losses
|
|
—
|
|
|
208,921
|
|
|
—
|
Other
|
|
2,984
|
|
|
2,957
|
|
|
5,214
|
|
|
1,566,716
|
|
|
1,423,771
|
|
|
1,687,698
|
Loss from
operations
|
|
(640,006)
|
|
|
(399,264)
|
|
|
(949,366)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
Interest
income
|
|
255,719
|
|
|
322,587
|
|
|
381,799
|
Foreign exchange
(loss) gain - net
|
|
98,887
|
|
|
(84,774)
|
|
|
(11,402)
|
Other - net
|
|
(298)
|
|
|
(110,020)
|
|
|
46,912
|
|
|
354,308
|
|
|
127,793
|
|
|
417,309
|
Loss before income
taxes
|
|
(285,698)
|
|
|
(271,471)
|
|
|
(532,057)
|
Income tax benefit
(expense)
|
|
—
|
|
|
—
|
|
|
—
|
Net loss attributable
to shareholders of GigaMedia
|
$
|
(285,698)
|
|
$
|
(271,471)
|
|
$
|
(532,057)
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
Basic and
Diluted:
|
$
|
(0.03)
|
|
$
|
(0.02)
|
|
$
|
(0.05)
|
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
|
|
|
3/31/2020
|
|
12/31/2019
|
|
3/31/2019
|
|
unaudited
|
|
audited
|
|
unaudited
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
$
|
56,777,472
|
|
$
|
57,742,696
|
|
$
|
57,976,503
|
Accounts receivable -
net
|
|
355,225
|
|
|
368,445
|
|
|
589,520
|
Prepaid
expenses
|
|
276,010
|
|
|
112,243
|
|
|
208,919
|
Restricted
cash
|
|
533,436
|
|
|
530,984
|
|
|
517,815
|
Other
receivables
|
|
238,396
|
|
|
261
|
|
|
375,192
|
Other current
assets
|
|
148,757
|
|
|
138,601
|
|
|
127,377
|
Total current
assets
|
|
58,329,296
|
|
|
58,893,230
|
|
|
59,795,326
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment - net
|
|
8,117
|
|
|
—
|
|
|
100,148
|
Intangible assets -
net
|
|
17,965
|
|
|
—
|
|
|
32,492
|
Prepaid licensing and
royalty fees
|
|
210,530
|
|
|
43,915
|
|
|
383,681
|
Other
assets
|
|
285,319
|
|
|
285,071
|
|
|
1,034,278
|
Total
assets
|
$
|
58,851,227
|
|
$
|
59,222,216
|
|
$
|
61,345,925
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
Short-term
borrowings
|
$
|
—
|
|
$
|
—
|
|
$
|
—
|
Accounts
payable
|
|
60,405
|
|
|
64,337
|
|
|
98,921
|
Accrued
compensation
|
|
156,948
|
|
|
200,455
|
|
|
134,243
|
Accrued
expenses
|
|
1,449,553
|
|
|
1,079,234
|
|
|
1,228,483
|
Unearned
revenue
|
|
1,285,399
|
|
|
1,364,749
|
|
|
1,290,792
|
Other current
liabilities
|
|
715,877
|
|
|
874,434
|
|
|
177,073
|
Total current
liabilities
|
|
3,668,182
|
|
|
3,583,209
|
|
|
2,929,512
|
Other
liabilities
|
|
7,337
|
|
|
94,385
|
|
|
779,919
|
Total
liabilities
|
|
3,675,519
|
|
|
3,677,594
|
|
|
3,709,431
|
Total
equity
|
|
55,175,708
|
|
|
55,544,622
|
|
|
57,636,494
|
Total liabilities and
equity
|
$
|
58,851,227
|
|
$
|
59,222,216
|
|
$
|
61,345,925
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
Three months
ended
|
|
3/31/2020
|
|
12/31/2019
|
|
3/31/2019
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
$
|
(285,698)
|
|
$
|
(271,471)
|
|
$
|
(532,057)
|
Depreciation
|
|
354
|
|
|
10,888
|
|
|
25,388
|
Amortization
|
|
4,657
|
|
|
9,669
|
|
|
12,899
|
Interest
income
|
|
(255,719)
|
|
|
(322,587)
|
|
|
(381,799)
|
Interest
expense
|
|
—
|
|
|
—
|
|
|
—
|
Income tax (benefit)
expense
|
|
—
|
|
|
—
|
|
|
—
|
EBITDA
|
$
|
(536,406)
|
|
$
|
(573,501)
|
|
$
|
(875,569)
|
View original
content:http://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2020-financial-results-301050152.html
SOURCE GigaMedia Limited