TAIPEI, May 8, 2015 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its first-quarter 2015 unaudited
financial results.
Message from Management
In 2014, the Company initiated the collaboration with Korean
gaming studios for co-developing new games and acquired licenses of
the new games from other Asian developers.
In the first quarter of 2015, the Company benefited from five
mobile games released in late December
2014 and also a RPG mobile game published in February this
year, and the contribution made by the mobile games accounted for
about 59.0% of the total operating revenues. The contribution made
by the social casino games and the cloud computing business
accounted for about 27.0% and 14.0% respectively of the operating
revenues. The operating revenues were US$3.2
million, grew by about 18.9% quarter-on-quarter. In
addition, the Company continued to dispose partial marketable
securities in the first quarter of 2015.
However, the margin and the life cycle of gaming business
continue to decrease while the expenses continue to increase. The
revenue of cloud computing business compared with the same period
of 2014 improved significantly yet still remains big room to grow,
and so does the social casino game business.
Management expects the Company's mobile gaming business to
maintain stable, and its social casino game and cloud computing
businesses to expand in 2015, and meanwhile, considers possible
strategic investments or partnership to be an alternative as an
injection of business synergies to the Company in order to support
its future revenue growth.
Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games and
cloud computing services. GigaMedia's online games business FunTown
develops and operates a suite of games in Taiwan and Hong
Kong, with focus on browser/mobile games and social casino
games. GigaMedia's cloud computing business GigaCloud was launched
in early April 2013 and is focused on
providing small and medium-sized enterprises in Greater China with critical communications
services and IT solutions that increase flexibility, efficiency and
competitiveness.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the First Quarter
GIGAMEDIA
1Q15UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
1Q15
|
4Q14
|
Change
(%)
|
1Q15
|
1Q14
|
Change
(%)
|
Revenues
|
3,162
|
2,660
|
18.9%
|
3,162
|
2,175
|
45.4%
|
Gross
Profit
|
738
|
(94)
|
885.1%
|
738
|
1,015
|
-27.3%
|
Loss from
Operations
|
(3,416)
|
(4,330)
|
21.1%
|
(3,416)
|
(2,567)
|
-33.1%
|
Net Income (Loss)
Attributable to GigaMedia
|
5,239
|
5,437
|
-3.6%
|
5,239
|
(3,076)
|
270.3%
|
Net Income (Loss)
Per Share Attributable to GigaMedia, Diluted
|
0.09
|
0.10
|
-10.0%
|
0.09
|
(0.06)
|
250.0%
|
EBITDA (A)
|
5,335
|
5,675
|
-6.0%
|
5,335
|
(2,806)
|
290.1%
|
Cash and
Marketable Securities-Current
|
75,575
|
79,980
|
-5.5%
|
75,575
|
78,821
|
-4.1%
|
(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 were $3.2
million, grew by 18.9% quarter-on-quarter and 45.4%
quarter-over-quarter thanks to the contribution of gaming business
with the revenues of $2.7 million in
1Q15, up by 58.8% from $1.7 million
in 4Q14 and 35.0% from $2.0 million
in 1Q14.
- Consolidated operating expenses were $4.2 million in 1Q15, which made no significant
change from 4Q14, but increased by 16% from $3.6 million quarter-over-quarter, resulting from
an increase of selling and marketing expenses for the new
games.
- Consolidated non-operating income was $8.6 million thanks to the capital gain on
disposal of marketable securities.
- Net income was $5.2 million
attributable to the gain on sales of marketable securities and an
increase on the operating revenues. It was down by 3.6%
quarter-on-quarter mainly due to the market price valuation on
investment.
- Cash and marketable securities-current in 1Q15 accounted for
$75.6 million, slightly decreased by
5.5% from $80.0 million in 4Q14
resulting from the market price valuation on the securities
investment.
Financial Position
GigaMedia maintained its solid financial position with cash and
cash equivalents, marketable securities-current and restricted cash
accounted for $84.6 million as of
March 31, 2015, or approximately
$1.53 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May
7, 2015. 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 2014 Annual Report
on Form 20-F filed with the U.S. Securities
and Exchange Commission as referenced below, actual
results may differ materially.
In 2015, the Company has started to attend the overseas gaming
events in order to attract worldwide publishers and expand the
Company's brand exposure. In this way, management expects the
co-developed games to be ready by the third quarter this year and
license them to the overseas publishers.
For social casino game platform, the Company aims at increasing
the marketing campaigns, including but not limited to joint-sponsor
the related international tournaments or attend the events.
With regard to cloud computing business, the Company will
provide more open source alternatives and integrated services to
the corporate customers. Management expects it to increase its
revenues and also improve its margin.
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 first quarter 2015 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 online games and cloud computing
services. GigaMedia's online games business develops and operates a
suite of games in Taiwan and
Hong Kong, with focus on
browser/mobile games and social casino games. The company's cloud
computing business is focused on providing SMEs in Greater China with critical communications
services and IT solutions that increase flexibility, efficiency and
competitiveness. 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 2013 and its
other filings with the United States Securities and Exchange
Commission.
For further information contact:
Amanda Chang
Investor Relations Department
+886-2-2656-8080
amanda.chang@gigamedia.com.tw
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
|
3/31/2015
|
|
12/31/2014
|
|
3/31/2014
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
USD
|
|
USD
|
|
USD
|
Operating
revenues
|
|
|
|
|
|
|
|
Asian online game and
service revenues
|
|
|
2,718,393
|
|
1,739,623
|
|
2,042,102
|
Other
revenues
|
|
|
443,692
|
|
920,732
|
|
133,204
|
|
|
|
3,162,085
|
|
2,660,355
|
|
2,175,306
|
|
|
|
|
|
|
|
|
Operating
costs
|
|
|
|
|
|
|
|
Cost of Asian online
game and service revenues
|
|
|
1,966,164
|
|
1,833,963
|
|
912,002
|
Cost of other
revenues
|
|
|
457,520
|
|
920,471
|
|
248,772
|
|
|
|
2,423,684
|
|
2,754,434
|
|
1,160,774
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
738,401
|
|
(94,079)
|
|
1,014,532
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
181,708
|
|
220,748
|
|
246,328
|
Selling and marketing
expenses
|
|
|
2,687,116
|
|
1,697,665
|
|
1,572,235
|
General and
administrative expenses
|
|
|
1,285,835
|
|
915,407
|
|
1,762,613
|
Impairment
losses
|
|
|
0
|
|
1,401,667
|
|
0
|
|
|
|
4,154,659
|
|
4,235,487
|
|
3,581,176
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(3,416,258)
|
|
(4,329,566)
|
|
(2,566,644)
|
|
|
|
|
|
|
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
Interest
income
|
|
|
102,529
|
|
146,579
|
|
173,830
|
Gain on sales of
marketable securities
|
|
|
9,473,063
|
|
6,011,518
|
|
241
|
Interest
expense
|
|
|
(82,113)
|
|
(80,344)
|
|
(15,580)
|
Foreign exchange loss
- net
|
|
|
(16,242)
|
|
(244,306)
|
|
(447,252)
|
Equity in net
earnings on equity method investments
|
|
|
40,100
|
|
3,538,522
|
|
23,501
|
Changes in the fair
value of an instrument recognized at fair value
|
|
|
(951,660)
|
|
74,213
|
|
0
|
Other
|
|
|
18,373
|
|
263,660
|
|
57,443
|
|
|
|
8,584,050
|
|
9,709,842
|
|
(207,817)
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations before income taxes
|
|
|
5,167,792
|
|
5,380,276
|
|
(2,774,461)
|
Income tax benefit
(expense)
|
|
|
13,351
|
|
13,005
|
|
(721)
|
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
5,181,143
|
|
5,393,281
|
|
(2,775,182)
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
5,181,143
|
|
5,393,281
|
|
(2,775,182)
|
Less: Net loss
(income) attributable to noncontrolling interest
|
|
|
58,130
|
|
43,639
|
|
(300,921)
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to shareholders of GigaMedia
|
|
|
5,239,273
|
|
5,436,920
|
|
(3,076,103)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) earnings per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
0.09
|
|
0.10
|
|
(0.06)
|
Loss from
discontinued operations
|
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
0.09
|
|
0.10
|
|
(0.06)
|
Diluted:
|
|
|
|
|
|
|
|
Income (loss) from
continuing operations
|
|
|
0.09
|
|
0.10
|
|
(0.06)
|
Loss from
discontinued operations
|
|
|
0.00
|
|
0.00
|
|
0.00
|
|
|
|
0.09
|
|
0.10
|
|
(0.06)
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
Basic
|
|
|
55,261,661
|
|
55,261,661
|
|
51,224,134
|
Diluted
|
|
|
55,261,926
|
|
55,284,832
|
|
51,224,134
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
3/31/2015
|
|
12/31/2014
|
|
3/31/2014
|
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
|
USD
|
|
USD
|
|
USD
|
Assets
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
53,856,429
|
|
50,640,355
|
|
49,667,405
|
Marketable securities
- current
|
|
21,718,274
|
|
29,339,926
|
|
29,153,315
|
Accounts receivable -
net
|
|
2,031,966
|
|
1,297,785
|
|
1,159,243
|
Prepaid
expenses
|
|
671,116
|
|
564,080
|
|
681,611
|
Restricted
cash
|
|
|
9,034,062
|
|
8,990,666
|
|
1,491,139
|
Other
receivables
|
|
3,105,223
|
|
129,126
|
|
208,249
|
Other current
assets
|
|
490,835
|
|
195,998
|
|
145,424
|
Total current
assets
|
|
90,907,905
|
|
91,157,936
|
|
82,506,386
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
4,744,000
|
|
4,744,000
|
|
10,178,480
|
Investments
|
|
|
5,724,346
|
|
5,780,778
|
|
5,279,776
|
Property, plant &
equipment - net
|
|
1,719,799
|
|
1,663,424
|
|
1,663,286
|
Intangible assets -
net
|
|
263,811
|
|
221,630
|
|
1,151,311
|
Prepaid licensing and
royalty fees
|
|
5,144,947
|
|
4,382,772
|
|
4,629,954
|
Other
assets
|
|
|
356,274
|
|
353,258
|
|
301,240
|
Total
assets
|
|
|
108,861,082
|
|
108,303,798
|
|
105,710,433
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
Short-term
borrowings
|
|
19,808,307
|
|
18,641,390
|
|
4,266,492
|
Accounts
payable
|
|
652,708
|
|
770,965
|
|
297,595
|
Accrued
compensation
|
|
363,480
|
|
795,431
|
|
572,948
|
Accrued
expenses
|
|
3,439,764
|
|
3,464,652
|
|
2,262,425
|
Unearned
revenue
|
|
1,947,176
|
|
1,945,945
|
|
2,351,164
|
Other current
liabilities
|
|
1,985,012
|
|
1,718,709
|
|
3,731,110
|
Total current
liabilities
|
|
28,196,447
|
|
27,337,092
|
|
13,481,734
|
Other
liabilities
|
|
|
1,935,620
|
|
1,938,256
|
|
177,449
|
Total
liabilities
|
|
|
30,132,067
|
|
29,275,348
|
|
13,659,183
|
GigaMedia's
shareholders' equity
|
|
78,776,989
|
|
79,017,995
|
|
91,904,862
|
Noncontrolling
interest
|
|
(47,974)
|
|
10,455
|
|
146,388
|
Total
equity
|
|
|
78,729,015
|
|
79,028,450
|
|
92,051,250
|
|
|
|
|
|
|
|
|
Total liabilities and
equity
|
|
108,861,082
|
|
108,303,798
|
|
105,710,433
|
Loss from discontinued
operations, net of tax
|
|
|
|
|
|
|
GIGAMEDIA
LIMITED
|
Reconciliations of
Non-GAAP Results of Operations
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
3/31/2015
|
|
12/31/2014
|
|
3/31/2014
|
|
|
unaudited
|
|
unaudited
|
|
unaudited
|
|
|
USD
|
|
USD
|
|
USD
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
5,239,273
|
|
5,436,920
|
|
(3,076,103)
|
Depreciation
|
|
74,212
|
|
76,309
|
|
77,689
|
Amortization
|
|
55,316
|
|
241,060
|
|
349,771
|
Interest
income
|
|
(102,529)
|
|
(146,450)
|
|
(173,826)
|
Interest
expense
|
|
82,102
|
|
80,344
|
|
15,580
|
Income tax (benefit)
expense
|
|
(13,351)
|
|
(13,005)
|
|
721
|
EBITDA
|
|
5,335,023
|
|
5,675,178
|
|
(2,806,168)
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2015-financial-results-300080247.html
SOURCE GigaMedia Limited