TAIPEI, May 3, 2022
/PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today
announced its first quarter 2022 unaudited financial results.
Comments from Management
For the first quarter of 2022, GigaMedia reported revenues of
$1.55 million with a gross profit of
$0.90 million, an operating loss of
$0.83 million and the net loss of
$1.10 million. Total revenues
increased by 23.0% if compared to the previous quarter.
The improvement exhibited in revenues is mainly due to our
efforts in promoting a licensed game amidst a long stay-home period
in Hong Kong. Meanwhile, we
continued fine-tuning our fast-paced remake of legacy casual games
to increase players' stickiness and average revenue per user. With
a healthier operating model, we believe it will bring us a steady
growth and enhanced profitability in the future
While many countries around the world began easing COVID-19
restrictions, Hong Kong and
Taiwan, previously with
comparatively few cases, have been facing a wave of outbreak
recently, and certain disruptions to our operations were resulted.
"We have taken measures to mitigate the impact of the pandemic on
our business," stated GigaMedia CEO James
Huang.
First Quarter Overview
- Operating revenues increased by 23.0%
in quarter-on-quarter comparison and 6.9%
year-over-year. The increase was mainly attributable to our efforts
in boosting Tales Runner, a licensed game in Hong Kong, where primary pupils have
experienced a prolonged winter vacation.
- Loss from operations decreased to $0.83 million from $1.15
million last quarter, but net loss increased slightly to
$1.10 million from $0.99 million last quarter due to foreign
exchange loss arising from the surge of U.S. dollar in the past
quarter.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games. Unaudited consolidated results of GigaMedia
are summarized in the table below.
For the First Quarter
GIGAMEDIA 1Q22
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share
amounts)
|
|
1Q22
|
|
|
4Q21
|
|
|
Change
(%)
|
|
|
1Q22
|
|
|
1Q21
|
|
|
Change
(%)
|
|
Revenues
|
|
|
1,546
|
|
|
|
1,257
|
|
|
|
23.0
|
%
|
|
|
1,546
|
|
|
|
1,446
|
|
|
|
6.9
|
%
|
Gross
Profit
|
|
|
901
|
|
|
|
607
|
|
|
|
48.4
|
%
|
|
|
901
|
|
|
|
791
|
|
|
|
13.9
|
%
|
Loss from
Operations
|
|
|
(828)
|
|
|
|
(1,152)
|
|
|
NM
|
|
|
|
(828)
|
|
|
|
(901)
|
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(1,099)
|
|
|
|
(986)
|
|
|
NM
|
|
|
|
(1,099)
|
|
|
|
(875)
|
|
|
NM
|
|
Loss Per Share
Attributable to GigaMedia,
Diluted
|
|
|
(0.10)
|
|
|
|
(0.09)
|
|
|
NM
|
|
|
|
(0.10)
|
|
|
|
(0.08)
|
|
|
NM
|
|
EBITDA
(A)
|
|
|
(1,154)
|
|
|
|
(1,005)
|
|
|
NM
|
|
|
|
(1,154)
|
|
|
|
(949)
|
|
|
NM
|
|
Cash, Cash
Equivalent and Restricted Cash
|
|
|
40,534
|
|
|
|
41,762
|
|
|
|
(2.9)
|
%
|
|
|
40,534
|
|
|
|
44,446
|
|
|
|
(8.8)
|
%
|
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 2022 increased
by 23.0% quarter-on-quarter to $1.55
million, from $1.26 million in
the fourth quarter of 2021, and increased by 6.9% year-over-year
from $1.45 million in the first
quarter of 2021. The increase was mainly attributable to our
efforts in boosting Tales Runner, a licensed game, amidst a
long stay-home period in Hong
Kong.
- Consolidated gross profit increased to $0.90 million from $0.61
million in last quarter and increased by 13.9% from
$0.79 million in the same quarter
last year.
- Consolidated operating expenses were $1.73 million in the first quarter of 2022,
approximately comparable to prior quarter.
- Net loss for the first quarter of 2022 was $1.10 million, increased from a loss of
$0.99 million last quarter, and from
a loss of $0.88 million in the same
quarter last year.
- Cash, cash equivalents and restricted cash at the first
quarter-end of 2022 amounted to $40.5
million.
Financial Position
GigaMedia maintained its solid financial position, with cash,
cash equivalents and restricted cash amounting to $40.5 million, or approximately $3.67 per share as of March 31, 2022.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May
3, 2022. 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 2021
Annual Report on Form 20-F filed with the U.S. Securities and
Exchange Commission as referenced below, actual results may differ
materially.
"Notwithstanding the disruption of the pandemic, we are making
progress in developing and calibrating a robust business model for
our in-house casual games," said GigaMedia CEO James Huang. "We will continue executing our
strategy of internally-driven growth by cultivating customer
relationships, boosting productivity of the products and improving
cost structure and effective marketing."
Meanwhile, our business strategies always include expanding
through mergers and acquisitions. We will keep pursuing investment
opportunities that have strategic capacity to accelerate our growth
and enhance shareholders' value.
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 2022 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 2022 and its
other filings with the United States Securities and Exchange
Commission.
# # #
(Tables to follow)
GIGAMEDIA LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three months
ended
|
|
|
|
3/31/2022
|
|
|
12/31/2021
|
|
|
|
|
3/31/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,545,575
|
|
|
|
1,257,099
|
|
|
|
|
|
1,446,276
|
|
Other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
1,545,575
|
|
|
|
1,257,099
|
|
|
|
|
|
1,446,276
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service revenues
|
|
|
644,369
|
|
|
|
649,791
|
|
|
|
|
|
655,757
|
|
Cost of other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
644,369
|
|
|
|
649,791
|
|
|
|
|
|
655,757
|
|
Gross
profit
|
|
|
901,206
|
|
|
|
607,308
|
|
|
|
|
|
790,519
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development and
engineering expenses
|
|
|
322,438
|
|
|
|
363,917
|
|
|
|
|
|
345,898
|
|
Selling and marketing
expenses
|
|
|
435,205
|
|
|
|
495,573
|
|
|
|
|
|
397,033
|
|
General and
administrative expenses
|
|
|
971,101
|
|
|
|
897,473
|
|
|
|
|
|
946,192
|
|
Other
|
|
|
226
|
|
|
|
2,020
|
|
|
|
|
|
2,599
|
|
|
|
|
1,728,970
|
|
|
|
1,758,983
|
|
|
|
|
|
1,691,722
|
|
Loss from
operations
|
|
|
(827,764)
|
|
|
|
(1,151,675)
|
|
|
|
|
|
(901,203)
|
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
62,835
|
|
|
|
24,951
|
|
|
|
|
|
78,595
|
|
Foreign exchange (loss)
gain - net
|
|
|
(339,131)
|
|
|
|
41,038
|
|
|
|
|
|
(49,357)
|
|
Gain on disposal of
investments
|
|
|
—
|
|
|
|
45,863
|
|
|
|
|
|
—
|
|
Other-net
|
|
|
4,922
|
|
|
|
53,605
|
|
|
|
|
|
(2,809)
|
|
|
|
|
(271,374)
|
|
|
|
165,457
|
|
|
|
|
|
26,429
|
|
Loss from continuing
operations before income taxes
|
|
|
(1,099,138)
|
|
|
|
(986,218)
|
|
|
|
|
|
(874,774)
|
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
|
—
|
|
|
|
|
|
—
|
|
Net loss attributable
to shareholders of GigaMedia
|
|
|
(1,099,138)
|
|
|
|
(986,218)
|
|
|
|
|
|
(874,774)
|
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.10)
|
|
|
|
(0.09)
|
|
|
|
|
|
(0.08)
|
|
Diluted:
|
|
|
(0.10)
|
|
|
|
(0.09)
|
|
|
|
|
|
(0.08)
|
|
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
|
|
|
|
|
3/31/2022
|
|
|
12/31/2021
|
|
|
3/31/2021
|
|
|
|
unaudited
|
|
|
audited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
40,221,362
|
|
|
|
41,455,445
|
|
|
|
44,146,308
|
|
Accounts receivable -
net
|
|
|
245,742
|
|
|
|
264,890
|
|
|
|
281,945
|
|
Prepaid
expenses
|
|
|
728,280
|
|
|
|
400,954
|
|
|
|
393,587
|
|
Restricted
cash
|
|
|
312,772
|
|
|
|
306,411
|
|
|
|
300,000
|
|
Other
receivables
|
|
|
21,143
|
|
|
|
473
|
|
|
|
25,937
|
|
Other current
assets
|
|
|
151,560
|
|
|
|
154,344
|
|
|
|
156,622
|
|
Total current
assets
|
|
|
41,680,859
|
|
|
|
42,582,517
|
|
|
|
45,304,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
|
10,322,000
|
|
|
|
10,322,000
|
|
|
|
10,000,000
|
|
Property, plant &
equipment - net
|
|
|
79,266
|
|
|
|
87,806
|
|
|
|
38,860
|
|
Intangible assets -
net
|
|
|
9,166
|
|
|
|
11,746
|
|
|
|
11,596
|
|
Prepaid licensing and
royalty fees
|
|
|
299,117
|
|
|
|
35,017
|
|
|
|
108,878
|
|
Other assets
|
|
|
2,322,368
|
|
|
|
2,479,237
|
|
|
|
2,481,910
|
|
Total assets
|
|
|
54,712,776
|
|
|
|
55,518,323
|
|
|
|
57,945,643
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
47,916
|
|
|
|
118,343
|
|
|
|
88,009
|
|
Accrued
compensation
|
|
|
188,353
|
|
|
|
236,316
|
|
|
|
161,287
|
|
Accrued
expenses
|
|
|
1,436,606
|
|
|
|
1,199,039
|
|
|
|
1,083,293
|
|
Unearned
revenue
|
|
|
890,395
|
|
|
|
880,203
|
|
|
|
949,396
|
|
Other current
liabilities
|
|
|
820,580
|
|
|
|
782,630
|
|
|
|
740,286
|
|
Total current
liabilities
|
|
|
3,383,850
|
|
|
|
3,216,531
|
|
|
|
3,022,271
|
|
Other
liabilities
|
|
|
1,262,455
|
|
|
|
1,450,487
|
|
|
|
1,655,437
|
|
Total
liabilities
|
|
|
4,646,305
|
|
|
|
4,667,018
|
|
|
|
4,677,708
|
|
Total equity
|
|
|
50,066,471
|
|
|
|
50,851,305
|
|
|
|
53,267,935
|
|
Total liabilities and
equity
|
|
|
54,712,776
|
|
|
|
55,518,323
|
|
|
|
57,945,643
|
|
GIGAMEDIA LIMITED
|
Reconciliations of Non-GAAP Results
of Operations
|
|
|
|
Three months
ended
|
|
|
|
3/31/2022
|
|
|
12/31/2021
|
|
|
3/31/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(1,099,138)
|
|
|
|
(986,218)
|
|
|
|
(874,774)
|
|
Depreciation
|
|
|
5,764
|
|
|
|
3,889
|
|
|
|
1,902
|
|
Amortization
|
|
|
2,239
|
|
|
|
2,254
|
|
|
|
2,010
|
|
Interest
income
|
|
|
(62,835)
|
|
|
|
(24,951)
|
|
|
|
(78,595)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(1,153,970)
|
|
|
|
(1,005,026)
|
|
|
|
(949,457)
|
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2022-financial-results-301538429.html
SOURCE GigaMedia