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)
|
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2021-financial-results-301410928.html
SOURCE GigaMedia