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press release

April 30, 2020, 9:01 a.m. EDT

GigaMedia Announces First-Quarter 2020 Financial Results

TAIPEI, April 30, 2020 /PRNewswire/ -- GigaMedia Limited /zigman2/quotes/204964238/composite GIGM +2.46% 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 , 20 20 . 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)

 

Cision
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SOURCE GigaMedia Limited

Copyright (C) 2020 PR Newswire. All rights reserved

/zigman2/quotes/204964238/composite
US : U.S.: Nasdaq
$ 2.92
+0.07 +2.46%
Volume: 12,241
Aug. 7, 2020 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$32.27 million
Rev. per Employee
$49,731
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