TAIPEI, Oct. 28, 2021 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2021 unaudited financial results.

Comments from Management

In the third quarter of 2021, GigaMedia reported revenues of $1.56 million, with a gross profit of $0.88 million, an operating loss of $0.84 million and a net loss of $0.73 million. Total revenues increased by 27.7% if compared to last quarter, and gross profit margin improved to 56.1% from 51.7% last quarter.

This third quarter saw a rebound of our revenues due to seasonality exhibited in certain of our licensed games. And the operating expenses were kept in check, resulting to a mild improvement in operating loss.

Meanwhile, we are closing to complete the development of our fast-paced remake of legacy casual games. We believe the remake, as a sustainable business model, will contribute to our steady growth and enhanced profitability for future years.

Third Quarter Overview

  • Revenues increased by 27.7% quarter-on-quarter to approximately $1.56 million from $1.23 million last quarter. The increase was mainly due to our efforts in promoting Tales Runner, a 15-year-old licensed game, during the summer vacation.
  • Consolidated loss from operations for the third quarter of 2021 amounted to $0.84 million, representing a reduction of loss from $1.08 million last quarter.
  • The net asset value was around $4.67 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 mobile games and casual games.

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

For the Third Quarter

GIGAMEDIA3Q21 UNAUDITED CONSOLIDATED FINANCIAL RESULTS


(unaudited, all figures in US$ thousands, except per share amounts)


3Q21



2Q21



Change

(%)



3Q21



3Q20



Change

(%)

Revenues



1,564




1,225




27.7%




1,564




2,028




-22.9%

Gross Profit



877




633




38.6%




877




1,196




-26.7%

Loss from Operations



(842)




(1,079)



NM




(842)




(357)



NM

Net Loss Attributable to GigaMedia



(728)




(836)



NM




(728)




(248)



NM

Loss Per Share Attributable to GigaMedia, Diluted



(0.07)




(0.08)



NM




(0.07)




(0.02)



NM

EBITDA (A)



(791)




(911)



NM




(791)




(317)



NM

Cash, Cash Equivalents and Restricted Cash



43,152




43,650




-1.1%




43,152




46,869




-7.9%


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.) 

  • Consolidated revenues for the third quarter of 2021 were $1.56 million, representing an increase of 27.7% compared to $1.23 million in the prior quarter, but decreased by 22.9% year-over-year from $2.03 million the same quarter last year.
  • Consolidated gross profit increased by 38.6% quarter-on-quarter to $0.88 million from $0.63 million last quarter, or decreased by 26.7% year-over-year from $1.20 million in the third quarter last year.
  • Consolidated loss from operation of the third quarter of 2021 was $0.84 million, representing a decrease in loss by approximately $0.24 million from last quarter.
  • Consolidated net loss of the third quarter of 2021 was $0.73 million compared to $0.84 million in last quarter.
  • Cash, cash equivalents and restricted cash at the end of the third quarter of 2021 was $43.2 million, decreasing by 1.1% from $43.7 million last quarter.

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $43.2 million as of September 30, 2021, or $3.90 per share.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of October 28, 2021. 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 2020 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

For the following quarter, GigaMedia will continue the strategies of internally-driven growth by improving productivities of the existing games, executing effective marketing, and pursuing a steady expansion of customer base.

"Meanwhile, we are also exploring possibilities of expanding our business through strategic investments to maximize shareholders' value," stated CEO James Huang.

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 2021 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 2021 and its other filings with the United States Securities and Exchange Commission.

GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS



Three months ended



Nine months ended




9/30/2021



6/30/2021



9/30/2020



9/30/2021



9/30/2020




unaudited



unaudited



unaudited



unaudited



unaudited




USD



USD



USD



USD



USD


Operating revenues





















Digital entertainment service revenues



1,564,208




1,224,749




2,028,138




4,235,233




5,457,589


Other revenues



















1,564,208




1,224,749




2,028,138




4,235,233




5,457,589


Operating costs





















Cost of digital entertainment service revenues



687,198




591,687




831,732




1,934,642




2,356,831


Cost of other revenues



















687,198




591,687




831,732




1,934,642




2,356,831


Gross profit



877,010




633,062




1,196,406




2,300,591




3,100,758


Operating expenses





















Product development and engineering expenses



365,732




373,057




341,023




1,084,686




1,002,584


Selling and marketing expenses



459,519




376,914




374,462




1,233,467




1,152,466


General and administrative expenses



893,651




960,474




836,107




2,800,317




2,486,547


Other



33




2,103




2,157




4,735




5,099





1,718,935




1,712,548




1,553,749




5,123,205




4,646,696


Loss from operations



(841,925)




(1,079,486)




(357,343)




(2,822,614)




(1,545,938)


Non-operating income (expense)





















Interest income



68,084




80,184




71,014




226,863




539,613


Foreign exchange (loss) gain - net



(32,305)




163,139




39,214




81,477




55,744


Gain on disposal of investments



79,411










79,411





Other - net



(1,292)




176




(1,132)




(3,925)




(2,834)





113,898




243,499




109,096




383,826




592,523


Loss from continuing operations before income taxes



(728,027)




(835,987)




(248,247)




(2,438,788)




(953,415)


Income tax benefit (expense)
















Net loss attributable to shareholders of GigaMedia



(728,027)




(835,987)




(248,247)




(2,438,788)




(953,415)


Loss per share attributable to GigaMedia





















  Basic:



(0.07)




(0.08)




(0.02)




(0.22)




(0.09)


  Diluted:



(0.07)




(0.08)




(0.02)




(0.22)




(0.09)


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



9/30/2021



6/30/2021



9/30/2020




unaudited



unaudited



unaudited




USD



USD



USD


Assets













Current assets













Cash and cash equivalents



42,851,769




43,350,182




46,333,621


Accounts receivable - net



300,895




282,780




322,000


Prepaid expenses



436,201




242,488




155,357


Restricted cash



300,000




300,000




535,605


Other receivables



15,463




52,422




36,450


Other current assets



158,342




154,622




165,411


Total current assets



44,062,670




44,382,494




47,548,444















Marketable securities - noncurrent



10,000,000




10,000,000




10,000,000


Property, plant & equipment - net



45,427




48,349




22,580


Intangible assets - net



7,376




9,625




16,186


Prepaid licensing and royalty fees



57,030




73,762




142,860


Other assets



2,518,871




2,586,685




312,013


Total assets



56,691,374




57,100,915




58,042,083















Liabilities and equity













Accounts payable



40,154




44,870




74,138


Accrued compensation



395,323




279,896




403,753


Accrued expenses



1,396,646




1,138,777




1,397,399


Unearned revenue



912,399




930,026




1,041,862


Other current liabilities



842,110




787,009




545,974


Total current liabilities



3,586,632




3,180,578




3,463,126


Other liabilities



1,518,425




1,636,271




3,379


Total liabilities



5,105,057




4,816,849




3,466,505


Total equity



51,586,317




52,284,066




54,575,578


Total liabilities and equity



56,691,374




57,100,915




58,042,083


GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS



Three months ended



Nine months ended




9/30/2021



6/30/2021



9/30/2020



9/30/2021



9/30/2020




unaudited



unaudited



unaudited



unaudited



unaudited




USD



USD



USD



USD



USD


Reconciliation of Net Loss to EBITDA





















Net loss attributable to GigaMedia



(728,027)




(835,987)




(248,247)




(2,438,788)




(953,415)


Depreciation



2,936




2,920




752




7,759




1,641


Amortization



2,252




2,242




1,224




6,503




3,624


Interest income



(68,084)




(80,184)




(71,014)




(226,863)




(539,613)


Interest expense
















Income tax (benefit) expense
















EBITDA



(790,923)




(911,009)




(317,285)




(2,651,389)




(1,487,763)


 

 

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SOURCE GigaMedia

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