TAIPEI, March 31, 2022 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its unaudited financial results for
the fourth quarter and full year of 2021.
Highlights for Year Ended December 31,
2021
For 2021, GigaMedia reported revenues of $5.5 million, with a gross profit of $2.9 million, an operating loss of $4.0 million and the net loss of $3.4 million.
Compared to the prior year, the losses widened in spite of a
fair gross margin rate, mainly because revenues from certain
licensed games decreased as our Japanese and Korean licensors were
considerably impacted by the COVID-19 pandemic, and delays of supports,
upgrades and new contents affected the sustaining of interest in
the games. Along with recent easing of restrictions, there are
signs of improvement, but still not returning to the pre-pandemic
level.
And secondly, in exploring and evaluating prospects of strategic
investment opportunities, more professional services of legal,
valuation and other specialists were engaged. Meanwhile, our
interest income was markedly reduced as the interest rate had been
held down at near zero in the past year.
As for our $10 million investment
in Aeolus convertible note, Aeolus has made progress in business
development, and successfully attracted new investors and carried
out in late 2021 its Series B Financing of totally more than
$37 million at a subscription price
slightly higher than $3 or other
applicable prices. Considering that after the financing, Aeolus
would become cash abundant with a stronger financial position to
pursue expansion more resourcefully, we elected to take the 10%
discount of the conversion price to convert up to 20%, or
$2 million, of the principal amount
of the note at $2.718 into 735,835
shares of the Series B preferred shares. After the conversion, the
outstanding principal amount under the note is $8 million, and our right to elect to convert the
remaining amount upon maturity, upon prepayment, or when certain
events occur, into ordinary shares of Aeolus at a price of
$3.00 per share, is not affected.
Fourth Quarter and Full Year Overview
- Consolidated 4Q revenues decreased by 19.6%
quarter-on-quarter mainly due to seasonality, and by 11.4%
year-over-year as certain of our licensed games have entered the
decline stage. Full year revenues decreased by 20.1% to
$5.5 million from $6.9 million in 2020.
- Loss from operations for 4Q was $1.2
million, representing a loss increase from $0.8 million in 3Q, mainly due to a decrease in
gross profit and a slight increase in selling and marketing
expenses. Full year operating loss was $4.0
million, representing a loss increase of $1.8 million from approximately $2.2 million for 2020.
- The net asset value was approximately $4.58 per share as of the end of 2021.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Full Year 2021
GIGAMEDIA
FY21UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
FY21
|
|
|
FY20
|
|
|
Change
(%)
|
|
Revenues
|
|
|
5,492
|
|
|
|
6,875
|
|
|
|
-20.1
|
%
|
Gross
Profit
|
|
|
2,908
|
|
|
|
3,919
|
|
|
|
-25.8
|
%
|
Loss from
Operations
|
|
|
(3,974)
|
|
|
|
(2,152)
|
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(3,431)
|
|
|
|
(1,293)
|
|
|
NM
|
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.31)
|
|
|
|
(0.12)
|
|
|
NM
|
|
EBITDA
(A)
|
|
|
(3,702)
|
|
|
|
(1,899)
|
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
41,762
|
|
|
|
46,002
|
|
|
|
-9.2
|
%
|
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 year ended December 31, 2021 was $5.5
million, decreased from $6.9
million in the prior year. The decrease was mainly as
revenues from certain licensed games declined.
- Consolidated loss from operations for 2021 was $4.0 million, compared to a loss of $2.2 million in the last year. The increase of
loss was due to the decline of revenues.
- Consolidated net loss for 2021 was $3.4
million, increased from $1.3
million in the prior year. Loss per share for 2021 was
$0.31 per share, compared to
$0.12 last year.
- Cash, cash equivalents and restricted cash at the year end of
2021 amounted to $41.8 million.
For the Fourth Quarter
GIGAMEDIA 4Q21
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
4Q21
|
|
|
3Q21
|
|
|
Change
(%)
|
|
|
4Q21
|
|
|
4Q20
|
|
|
Change
(%)
|
|
Revenues
|
|
|
1,257
|
|
|
|
1,564
|
|
|
|
-19.6
|
%
|
|
|
1,257
|
|
|
|
1,418
|
|
|
|
-11.4
|
%
|
Gross
Profit
|
|
|
607
|
|
|
|
877
|
|
|
|
-30.8
|
%
|
|
|
607
|
|
|
|
818
|
|
|
|
-25.8
|
%
|
Loss from
Operations
|
|
|
(1,151)
|
|
|
|
(842)
|
|
|
NM
|
|
|
|
(1,151)
|
|
|
|
(607)
|
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(992)
|
|
|
|
(728)
|
|
|
NM
|
|
|
|
(992)
|
|
|
|
(340)
|
|
|
NM
|
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.09)
|
|
|
|
(0.07)
|
|
|
NM
|
|
|
|
(0.09)
|
|
|
|
(0.03)
|
|
|
NM
|
|
EBITDA
(A)
|
|
|
(1,051)
|
|
|
|
(791)
|
|
|
NM
|
|
|
|
(1,051)
|
|
|
|
(411)
|
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
41,762
|
|
|
|
43,152
|
|
|
|
-3.2
|
%
|
|
|
41,762
|
|
|
|
46,002
|
|
|
|
-9.2
|
%
|
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.)
Fourth-Quarter Financial Results
- Consolidated revenues for the fourth quarter of 2021 decreased
by 19.6% quarter-on-quarter from $1.6
million to $1.3 million mainly
due to seasonality, and decreased by 11.4% year-over-year mainly as
revenues from certain licensed games declined.
- Consolidated loss from operations of the fourth quarter of 2021
was $1.2 million, compared to a loss
of $0.8 million in the last
quarter.
- Consolidated net loss of the fourth quarter of 2021 was
$1.0 million, increased from a net
loss of $0.7 million in the last
quarter.
- Cash, cash equivalents and restricted cash at the end of the
fourth quarter of 2021 amounted to $41.8
million, which slightly decreased from $43.2 million at the end of the prior
quarter.
Financial Position
GigaMedia maintained its solid financial position. Cash, cash
equivalents and restricted cash amounted to $41.8 million, or approximately $3.78 per share, along with zero bank loan. Our
shareholders' equity was approximately $50.6
million of as of December 31,
2021.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of
March 31, 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 2020 Annual Report on
Form 20-F filed with the U.S.
Securities and Exchange Commission as referenced
below, actual results may differ materially.
"In the following quarters, we will be dedicated to improving
our in-house offerings as well as maintaining satisfactory working
relationships with our licensors," said GigaMedia CEO James Huang. "It is very critical to our steady
growth and long-term profitability for future years."
Meanwhile, besides the investment in Aeolus, our management
continues evaluating and pursuing prospects of strategic investment
target that are with potential to expand our business and create
greater shareholder 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
Unaudited results
All quarterly and certain annual 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 fourth quarter and full year 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 digital
entertainment products or services that are appealing to users, our
ability to retain existing users and attract new users, and our
ability to launch digital entertainment products and services 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.
# # #
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
12/31/2021
|
|
|
09/30/2021
|
|
|
12/31/2020
|
|
|
12/31/2021
|
|
|
12/31/2020
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,257,099
|
|
|
|
1,564,208
|
|
|
|
1,417,636
|
|
|
|
5,492,333
|
|
|
|
6,875,225
|
|
Other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,257,099
|
|
|
|
1,564,208
|
|
|
|
1,417,636
|
|
|
|
5,492,333
|
|
|
|
6,875,225
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Digital
entertainment service revenues
|
|
|
649,791
|
|
|
|
687,198
|
|
|
|
599,458
|
|
|
|
2,584,434
|
|
|
|
2,956,289
|
|
Cost of other
revenues
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
|
649,791
|
|
|
|
687,198
|
|
|
|
599,458
|
|
|
|
2,584,434
|
|
|
|
2,956,289
|
|
Gross
profit
|
|
|
607,308
|
|
|
|
877,010
|
|
|
|
818,178
|
|
|
|
2,907,899
|
|
|
|
3,918,936
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering expenses
|
|
|
363,917
|
|
|
|
365,732
|
|
|
|
324,404
|
|
|
|
1,448,604
|
|
|
|
1,326,987
|
|
Selling and marketing
expenses
|
|
|
495,573
|
|
|
|
459,519
|
|
|
|
466,093
|
|
|
|
1,729,039
|
|
|
|
1,618,560
|
|
General and
administrative expenses and others
|
|
|
896,967
|
|
|
|
893,651
|
|
|
|
634,118
|
|
|
|
3,697,284
|
|
|
|
3,120,665
|
|
Impairment
losses
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Other
|
|
|
2,020
|
|
|
|
33
|
|
|
|
163
|
|
|
|
6,755
|
|
|
|
5,262
|
|
|
|
|
1,758,477
|
|
|
|
1,718,935
|
|
|
|
1,424,778
|
|
|
|
6,881,682
|
|
|
|
6,071,474
|
|
Loss from
operations
|
|
|
(1,151,169)
|
|
|
|
(841,925)
|
|
|
|
(606,600)
|
|
|
|
(3,973,783)
|
|
|
|
(2,152,538)
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
64,892
|
|
|
|
68,084
|
|
|
|
73,403
|
|
|
|
291,756
|
|
|
|
613,016
|
|
Foreign exchange gain
(loss) - net
|
|
|
40,261
|
|
|
|
(32,305)
|
|
|
|
142,951
|
|
|
|
121,738
|
|
|
|
198,694
|
|
Gain on disposal of
investments
|
|
|
165
|
|
|
|
79,411
|
|
|
|
—
|
|
|
|
79,576
|
|
|
|
—
|
|
Other -
net
|
|
|
53,605
|
|
|
|
(1,292)
|
|
|
|
50,256
|
|
|
|
49,680
|
|
|
|
47,423
|
|
|
|
|
158,923
|
|
|
|
113,898
|
|
|
|
266,610
|
|
|
|
542,750
|
|
|
|
859,133
|
|
Loss from continuing
operations before income taxes
|
|
|
(992,246)
|
|
|
|
(728,027)
|
|
|
|
(339,990)
|
|
|
|
(3,431,034)
|
|
|
|
(1,293,405)
|
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net loss attributable
to shareholders of GigaMedia
|
|
|
(992,246)
|
|
|
|
(728,027)
|
|
|
|
(339,990)
|
|
|
|
(3,431,034)
|
|
|
|
(1,293,405)
|
|
Loss per share
attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.09)
|
|
|
|
(0.07)
|
|
|
|
(0.03)
|
|
|
|
(0.31)
|
|
|
|
(0.12)
|
|
Diluted:
|
|
|
(0.09)
|
|
|
|
(0.07)
|
|
|
|
(0.03)
|
|
|
|
(0.31)
|
|
|
|
(0.12)
|
|
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
|
|
12/31/2021
|
|
|
09/30/2021
|
|
|
12/31/2020
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
41,455,445
|
|
|
|
42,851,769
|
|
|
|
45,702,352
|
|
Accounts receivable -
net
|
|
|
264,890
|
|
|
|
300,895
|
|
|
|
274,583
|
|
Prepaid
expenses
|
|
|
400,954
|
|
|
|
436,201
|
|
|
|
87,728
|
|
Restricted
cash
|
|
|
306,411
|
|
|
|
300,000
|
|
|
|
300,000
|
|
Other
receivables
|
|
|
473
|
|
|
|
15,462
|
|
|
|
3,579
|
|
Other current
assets
|
|
|
154,344
|
|
|
|
158,343
|
|
|
|
157,021
|
|
Total current
assets
|
|
|
42,582,517
|
|
|
|
44,062,670
|
|
|
|
46,525,263
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities
- noncurrent
|
|
|
10,053,333
|
|
|
|
10,000,000
|
|
|
|
10,000,000
|
|
Property, plant &
equipment - net
|
|
|
87,806
|
|
|
|
45,427
|
|
|
|
21,852
|
|
Intangible assets -
net
|
|
|
11,745
|
|
|
|
7,376
|
|
|
|
3,640
|
|
Prepaid licensing and
royalty fees
|
|
|
35,017
|
|
|
|
57,030
|
|
|
|
130,718
|
|
Other
assets
|
|
|
2,407,331
|
|
|
|
2,518,871
|
|
|
|
341,701
|
|
Total
assets
|
|
|
55,177,749
|
|
|
|
56,691,374
|
|
|
|
57,023,174
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
118,343
|
|
|
|
40,154
|
|
|
|
69,931
|
|
Accrued
compensation
|
|
|
236,316
|
|
|
|
395,323
|
|
|
|
474,456
|
|
Accrued
expenses
|
|
|
1,199,039
|
|
|
|
1,396,646
|
|
|
|
1,041,256
|
|
Unearned
revenue
|
|
|
880,203
|
|
|
|
912,399
|
|
|
|
949,853
|
|
Other current
liabilities
|
|
|
752,573
|
|
|
|
842,110
|
|
|
|
387,712
|
|
Total current
liabilities
|
|
|
3,186,474
|
|
|
|
3,586,632
|
|
|
|
2,923,208
|
|
Other
liabilities
|
|
|
1,408,125
|
|
|
|
1,518,425
|
|
|
|
3,103
|
|
Total
liabilities
|
|
|
4,594,599
|
|
|
|
5,105,057
|
|
|
|
2,926,311
|
|
Total
equity
|
|
|
50,583,150
|
|
|
|
51,586,317
|
|
|
|
54,096,863
|
|
Total liabilities and
equity
|
|
|
55,177,749
|
|
|
|
56,691,374
|
|
|
|
57,023,174
|
|
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF
OPERATIONS
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
12/31/2021
|
|
|
9/30/2021
|
|
|
12/31/2020
|
|
|
12/31/2021
|
|
|
12/31/2020
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(992,246)
|
|
|
|
(728,027)
|
|
|
|
(339,990)
|
|
|
|
(3,431,034)
|
|
|
|
(1,293,405)
|
|
Depreciation
|
|
|
3,889
|
|
|
|
2,936
|
|
|
|
1,192
|
|
|
|
11,647
|
|
|
|
2,833
|
|
Amortization
|
|
|
2,254
|
|
|
|
2,252
|
|
|
|
1,252
|
|
|
|
8,758
|
|
|
|
4,876
|
|
Interest
income
|
|
|
(64,892)
|
|
|
|
(68,084)
|
|
|
|
(73,403)
|
|
|
|
(291,756)
|
|
|
|
(613,016)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(1,050,995)
|
|
|
|
(790,923)
|
|
|
|
(410,949)
|
|
|
|
(3,702,385)
|
|
|
|
(1,898,712)
|
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2021-financial-results-301514846.html
SOURCE GigaMedia