TAIPEI, July 30, 2020 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its second-quarter 2020
unaudited financial results.
Comments from Management
In the second quarter of 2020, GigaMedia reported revenues of
$1.83 million, with a gross profit
$0.98 million, an operating loss of
$0.55 million and the net loss of
$0.42 million. Total revenues
increased by 13.8% if compared to the previous quarter.
"In spite of the ongoing disruption of the pandemic to our
operations, we have achieved clear improvements," said GigaMedia
CEO James Huang. "We have reshaped
our cost structure and remodeled our marketing strategies, thereby
approximately halved the operating loss if comparing to the same
quarter last year."
"And we are also enhancing the playability and stickiness of
FunTown M, our in-house developed mobile platform of casual
games," continued GigaMedia CEO James
Huang, "which will be the most crucial piece to fall in
place for our turning profitable beyond just break-even."
Second Quarter Overview
- Operating revenues increased by approximately 13.8%
quarter-on-quarter, to $1.83 million
from $1.60 million in last quarter,
and 4.3% year-over-year from $1.75
million the same period last year. The increase was mainly
attributable to our efforts in revitalizing Tales Runner, a
14-year-old licensed game we operate in Hong Kong.
- Gross profit increased slightly by 5.5% to $0.98 million from $0.93
million in last quarter, and increased by 27.2% compared to
$0.77 million in the same period last
year.
- The net asset value was $4.96 per
share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on
browser/mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Second Quarter
GIGAMEDIA 2Q20
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except
per share amounts)
|
|
2Q20
|
|
1Q20
|
|
Change
(%)
|
|
|
2Q20
|
|
2Q19
|
|
Change
(%)
|
|
Revenues
|
|
|
1,826
|
|
|
1,604
|
|
|
13.8
|
%
|
|
|
1,826
|
|
|
1,750
|
|
|
4.3
|
%
|
Gross
Profit
|
|
|
978
|
|
|
927
|
|
|
5.5
|
%
|
|
|
978
|
|
|
769
|
|
|
27.2
|
%
|
Loss from
Operations
|
|
|
(549)
|
|
|
(640)
|
|
NM
|
|
|
|
(549)
|
|
|
(1,122)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(419)
|
|
|
(286)
|
|
NM
|
|
|
|
(419)
|
|
|
(614)
|
|
NM
|
|
Net Loss Per Share
Attributable to
GigaMedia,
Diluted
|
|
|
(0.04)
|
|
|
(0.03)
|
|
NM
|
|
|
|
(0.04)
|
|
|
(0.06)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(634)
|
|
|
(536)
|
|
NM
|
|
|
|
(634)
|
|
|
(1,000)
|
|
NM
|
|
Cash, Cash
Equivalents and
Restricted Cash
|
|
|
56,783
|
|
|
57,311
|
|
|
(0.9)
|
%
|
|
|
56,783
|
|
|
58,015
|
|
|
(2.1)
|
%
|
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.)
|
Second-Quarter Financial Results
- Consolidated revenues for the second quarter of 2020
increased by 13.8% quarter-on-quarter to $1.83 million from $1.60
million in last quarter, and by 4.3% year-over-year from
$1.75 million the same period last
year.
- Consolidated gross profit was $0.98
million, increased by 5.5% quarter-on-quarter and 27.2%
year-over-year.
- Consolidated operating expenses were $1.53 million, comparable to the first quarter of
2020 and decreased by 19.3% if compared to the same period last
year, which reflected a decrease in marketing expenses and general
expenses.
- Consolidated loss from operation of the second quarter of
2020 was a loss of $0.55 million,
reflecting an improvement from a loss of $0.64 million in the first quarter.
- Net loss in the second quarter of 2020 was $0.42 million, increasing from a net loss of
$0.29 million in the first quarter
this year mainly due to lower interest income and exchange loss in
this quarter.
- Cash, cash equivalents and restricted cash at the end of
the second quarter of 2020 amounted to $56.8
million, slightly decreased by 0.9% from $57.3 million as of the end of the first
quarter.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounted to $56.8 million, or $5.14 per share, as of June 30, 2020.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of July
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 the second half of 2020, we will continue improving
productivities of the existing games, in which FunTown M,
our own mobile platform of casual games, is expected to begin
contributing to our revenues. Along with our various product lines
and customer platform, we will gradually accumulate the momentum to
an upward trend.
Meanwhile, 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 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 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 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
|
|
Six months
ended
|
|
|
06/30/2020
|
|
03/31/2020
|
|
06/30/2019
|
|
06/30/2020
|
|
06/30/2019
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,825,547
|
|
|
1,603,904
|
|
|
1,749,583
|
|
|
3,429,450
|
|
|
3,232,816
|
Other
revenues
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
1,825,547
|
|
|
1,603,904
|
|
|
1,749,583
|
|
|
3,429,450
|
|
|
3,232,816
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service
revenues
|
|
|
847,906
|
|
|
677,194
|
|
|
980,448
|
|
|
1,525,099
|
|
|
1,725,350
|
Cost of other
revenues
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
|
847,906
|
|
|
677,194
|
|
|
980,448
|
|
|
1,525,099
|
|
|
1,725,350
|
Gross
profit
|
|
|
977,641
|
|
|
926,710
|
|
|
769,135
|
|
|
1,904,351
|
|
|
1,507,466
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering
expenses
|
|
|
332,745
|
|
|
328,815
|
|
|
325,144
|
|
|
661,560
|
|
|
645,638
|
Selling and marketing
expenses
|
|
|
367,529
|
|
|
410,475
|
|
|
580,539
|
|
|
778,004
|
|
|
1,106,542
|
General and
administrative expenses
|
|
|
825,998
|
|
|
824,442
|
|
|
974,648
|
|
|
1,650,440
|
|
|
1,810,634
|
Other
|
|
|
(42)
|
|
|
2,984
|
|
|
11,165
|
|
|
2,942
|
|
|
16,380
|
|
|
|
1,526,230
|
|
|
1,566,716
|
|
|
1,891,496
|
|
|
3,092,946
|
|
|
3,579,194
|
Loss from
operations
|
|
|
(548,589)
|
|
|
(640,006)
|
|
|
(1,122,361)
|
|
|
(1,188,595)
|
|
|
(2,071,728)
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
212,881
|
|
|
255,719
|
|
|
414,450
|
|
|
468,600
|
|
|
796,250
|
Foreign exchange
(loss) gain - net
|
|
|
(82,357)
|
|
|
98,887
|
|
|
90,922
|
|
|
16,529
|
|
|
79,520
|
Other -
net
|
|
|
(1,404)
|
|
|
(298)
|
|
|
3,416
|
|
|
(1,702)
|
|
|
50,328
|
|
|
|
129,120
|
|
|
354,308
|
|
|
508,788
|
|
|
483,427
|
|
|
926,098
|
Loss before income
taxes
|
|
|
(419,469)
|
|
|
(285,698)
|
|
|
(613,573)
|
|
|
(705,168)
|
|
|
(1,145,630)
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Net
loss attributable to shareholders of
GigaMedia
|
|
|
(419,469)
|
|
|
(285,698)
|
|
|
(613,573)
|
|
|
(705,168)
|
|
|
(1,145,630)
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
(0.04)
|
|
|
(0.03)
|
|
|
(0.06)
|
|
|
(0.06)
|
|
|
(0.10)
|
Diluted
|
|
|
(0.04)
|
|
|
(0.03)
|
|
|
(0.06)
|
|
|
(0.06)
|
|
|
(0.10)
|
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
|
|
|
|
06/30/2020
|
|
03/31/2020
|
|
06/30/2019
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
56,247,678
|
|
|
56,777,472
|
|
|
57,489,563
|
Accounts receivable -
net
|
|
|
349,450
|
|
|
355,225
|
|
|
591,905
|
Prepaid
expenses
|
|
|
228,794
|
|
|
276,010
|
|
|
275,551
|
Restricted
cash
|
|
|
535,153
|
|
|
533,436
|
|
|
525,354
|
Other
receivables
|
|
|
203,671
|
|
|
238,396
|
|
|
458,383
|
Other current
assets
|
|
|
142,230
|
|
|
148,757
|
|
|
131,150
|
Total current
assets
|
|
|
57,706,976
|
|
|
58,329,296
|
|
|
59,471,906
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment - net
|
|
|
7,740
|
|
|
8,117
|
|
|
92,580
|
Intangible assets -
net
|
|
|
17,111
|
|
|
17,965
|
|
|
23,545
|
Prepaid licensing and
royalty fees
|
|
|
184,365
|
|
|
210,530
|
|
|
574,274
|
Other
assets
|
|
|
290,687
|
|
|
285,319
|
|
|
1,035,529
|
Total
assets
|
|
|
58,206,879
|
|
|
58,851,227
|
|
|
61,197,834
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
69,147
|
|
|
60,405
|
|
|
119,597
|
Accrued
compensation
|
|
|
278,622
|
|
|
156,948
|
|
|
253,262
|
Accrued
expenses
|
|
|
1,321,262
|
|
|
1,449,553
|
|
|
1,340,539
|
Unearned
revenue
|
|
|
1,058,940
|
|
|
1,285,399
|
|
|
1,617,881
|
Other current
liabilities
|
|
|
627,162
|
|
|
715,877
|
|
|
197,776
|
Total current
liabilities
|
|
|
3,355,133
|
|
|
3,668,182
|
|
|
3,529,055
|
Other
liabilities
|
|
|
3,653
|
|
|
7,337
|
|
|
781,187
|
Total
liabilities
|
|
|
3,358,786
|
|
|
3,675,519
|
|
|
4,310,242
|
GigaMedia's
shareholders' equity
|
|
|
54,848,093
|
|
|
55,175,708
|
|
|
56,887,592
|
Total liabilities and
equity
|
|
|
58,206,879
|
|
|
58,851,227
|
|
|
61,197,834
|
GIGAMEDIA
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
Three months
ended
|
|
Six months
ended
|
|
|
06/30/2020
|
|
03/31/2020
|
|
06/30/2019
|
|
06/30/2020
|
|
06/30/2019
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Loss to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(419,469)
|
|
|
(285,698)
|
|
|
(613,573)
|
|
|
(705,168)
|
|
|
(1,145,630)
|
Depreciation
|
|
|
535
|
|
|
354
|
|
|
14,769
|
|
|
889
|
|
|
40,156
|
Amortization
|
|
|
(2,257)
|
|
|
4,657
|
|
|
12,830
|
|
|
2,400
|
|
|
25,729
|
Interest
income
|
|
|
(212,881)
|
|
|
(255,719)
|
|
|
(414,450)
|
|
|
(468,600)
|
|
|
(796,250)
|
Interest
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
EBITDA
|
|
|
(634,072)
|
|
|
(536,406)
|
|
|
(1,000,424)
|
|
|
(1,170,479)
|
|
|
(1,875,995)
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content:http://www.prnewswire.com/news-releases/gigamedia-announces-second-quarter-2020-financial-results-301103636.html
SOURCE GigaMedia Limited