TAIPEI, March 31,
2023 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM)
today announced its unaudited financial results for the fourth
quarter and full year of 2022.
Highlights for Year Ended December 31,
2022
For 2022, GigaMedia reported revenues of $5.6 million, with a gross profit of $3.3 million, an operating loss of $3.0 million and the net loss of $3.1 million.
"In spite of all the difficulties, GigaMeida delivered an
improving result for 2022," said GigaMedia CEO James Huang. 2022 was indeed very challenging
for entertainment business, with all the rising cost of living and
the eroded consumer confidence. "But we managed to enhance our
productivity with a leaner organization structure," continued CEO
James Huang.
Notwithstanding a slower season in the fourth quarter, we closed
2022 with a smaller net loss of $3.1
million from $3.4 million in
the prior year. While we generated slightly higher revenues
than last year, the gross margin rate increased considerably from
52.9% to 58.2%. Furthermore, even under the current inflationary
environment, the operating expenditures were trimmed down from
$6.9 million to $6.3 million.
Meanwhile, we continued searching opportunities of mergers and
acquisitions. Certain projects have been reviewed and examined, but
we would not rush into making any reckless decision. "We believe
patience, a virtue too often undervalued, is very important in
making a strategic investment successful," stated GigaMedia CEO
James Huang.
Fourth Quarter and Full Year Overview
- Consolidated 4Q revenues decreased by 30.0%
quarter-on-quarter mainly due to seasonality, and by 12.3%
year-over-year. Nevertheless, full year revenues increased slightly
by 1.7% to $5.6 million from
$5.5 million in 2021.
- Loss from operations for 4Q was $0.7
million, almost the same if compared to the third quarter in
2022, as we managed to reduce the operating costs and expenses.
Full year operating loss was $3.0
million, representing a reduction of loss by $1.0 million from approximately $4.0 million in 2021.
- The net asset value was approximately $4.40 per share as of the end of 2022.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Full Year 2022
GIGAMEDIA FY22
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
FY22
|
|
|
FY21
|
|
|
Change
(%)
|
|
Revenues
|
|
|
5,585
|
|
|
|
5,492
|
|
|
|
1.7
|
%
|
Gross
Profit
|
|
|
3,250
|
|
|
|
2,908
|
|
|
|
11.8
|
%
|
Loss from
Operations
|
|
|
(3,020
|
)
|
|
|
(3,974
|
)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(3,058
|
)
|
|
|
(3,425
|
)
|
|
NM
|
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.28
|
)
|
|
|
(0.31
|
)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(3,743
|
)
|
|
|
(3,656
|
)
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
39,107
|
|
|
|
41,762
|
|
|
|
-6.4
|
%
|
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, 2022 was $5.6
million, slightly increased from $5.5
million in the prior year. The increase was mainly due to
our efforts in promoting a licensed game Tales Runner, we
operate in Hong Kong.
- Consolidated loss from operations for 2022 was
$3.0 million, compared to a loss of
$4.0 million in the last year. The
decrease of loss was mainly due to improved cost structure and more
streamlined operations.
- Consolidated net loss for 2022 was $3.1 million, slightly decreased from
$3.4 million in the prior year. Loss
per share for 2022 was $0.28 per
share, compared to $0.31 last
year.
- Cash, cash equivalents and restricted cash at the year end
of 2022 amounted to $39.1
million.
For the Fourth Quarter
GIGAMEDIA 4Q22
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
4Q22
|
|
|
3Q22
|
|
|
Change
(%)
|
|
|
4Q22
|
|
|
4Q21
|
|
|
Change
(%)
|
|
Revenues
|
|
|
1,102
|
|
|
|
1,575
|
|
|
|
-30.0
|
%
|
|
|
1,102
|
|
|
|
1,257
|
|
|
|
-12.3
|
%
|
Gross
Profit
|
|
|
626
|
|
|
|
949
|
|
|
|
-34.0
|
%
|
|
|
626
|
|
|
|
607
|
|
|
|
3.1
|
%
|
Loss from
Operations
|
|
|
(675
|
)
|
|
|
(674
|
)
|
|
NM
|
|
|
|
(675
|
)
|
|
|
(1,152
|
)
|
|
NM
|
|
Net Income (Loss)
Attributable to GigaMedia
|
|
|
40
|
|
|
|
(869
|
)
|
|
NM
|
|
|
|
40
|
|
|
|
(986
|
)
|
|
NM
|
|
Net Income (Loss)
Per Share Attributable to GigaMedia, Diluted
|
|
|
0.00
|
|
|
|
(0.08
|
)
|
|
NM
|
|
|
|
0.00
|
|
|
|
(0.09
|
)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(293
|
)
|
|
|
(1,106
|
)
|
|
NM
|
|
|
|
(293
|
)
|
|
|
(1,005
|
)
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
39,107
|
|
|
|
39,556
|
|
|
|
-1.1
|
%
|
|
|
39,107
|
|
|
|
41,762
|
|
|
|
-6.4
|
%
|
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 2022
decreased by 30.0% quarter-on-quarter from $1.6 million to $1.1
million mainly due to seasonality, and decreased by 12.3%
year-over-year mainly as revenues from casual games declined.
- Consolidated loss from operations of the fourth quarter of
2022 was $0.7 million, same as the
loss in the last quarter, and representing a loss decrease from
$1.2 million year-over-year.
- Consolidated net income of the fourth quarter of 2022 was
$0.04 million, increased from a net
loss of $0.9 million in the last
quarter.
- Cash, cash equivalents and restricted cash at the end of
the fourth quarter of 2022 amounted to $39.1
million, slightly decreased from $39.6 million at the end of the prior
quarter.
Financial Position
GigaMedia maintained its solid financial position. Cash, cash
equivalents and restricted cash amounted to $39.1 million, or approximately $3.54 per share, along with zero bank loan. Our
shareholders' equity was approximately $48.6
million of as of December 31,
2022.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of March 31, 2023.
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.
As the economic outlook for Taiwan and Hong
Kong for the next year would be just slightly better at best
when worries over inflation and recession would linger, we expect a
mild growth for 2023. Nonetheless, we will be seeking ways of
replicating our successful offerings to different territories,
generations and segments. "We will be pursuing growth and promoting
our business in a more cost-effective way, as it is essential to
preserve resources and streamline the operations when facing
economic uncertainties," said GigaMedia CEO James Huang.
In the meantime, we will continue exploring potential strategic
investment and acquisition targets that would enable us to
accelerate corporate growth and enhance long-term
profitability.
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 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 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 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
|
|
|
Twelve months
ended
|
|
|
|
12/31/2022
|
|
|
09/30/2022
|
|
|
12/31/2021
|
|
|
12/31/2022
|
|
|
12/31/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,101,507
|
|
|
|
1,574,971
|
|
|
|
1,257,099
|
|
|
|
5,585,340
|
|
|
|
5,492,333
|
|
|
|
|
1,101,507
|
|
|
|
1,574,971
|
|
|
|
1,257,099
|
|
|
|
5,585,340
|
|
|
|
5,492,333
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Digital
entertainment service revenues
|
|
|
475,714
|
|
|
|
625,992
|
|
|
|
649,791
|
|
|
|
2,334,982
|
|
|
|
2,584,434
|
|
|
|
|
475,714
|
|
|
|
625,992
|
|
|
|
649,791
|
|
|
|
2,334,982
|
|
|
|
2,584,434
|
|
Gross
profit
|
|
|
625,793
|
|
|
|
948,979
|
|
|
|
607,308
|
|
|
|
3,250,358
|
|
|
|
2,907,899
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development and
engineering expenses
|
|
|
163,043
|
|
|
|
303,838
|
|
|
|
363,917
|
|
|
|
1,110,284
|
|
|
|
1,448,604
|
|
Selling and marketing
expenses
|
|
|
406,749
|
|
|
|
425,498
|
|
|
|
495,573
|
|
|
|
1,644,351
|
|
|
|
1,729,039
|
|
General and
administrative expenses and others
|
|
|
730,850
|
|
|
|
892,368
|
|
|
|
897,473
|
|
|
|
3,514,508
|
|
|
|
3,697,791
|
|
Other
|
|
|
(245
|
)
|
|
|
820
|
|
|
|
2,020
|
|
|
|
1,513
|
|
|
|
6,755
|
|
|
|
|
1,300,397
|
|
|
|
1,622,524
|
|
|
|
1,758,983
|
|
|
|
6,270,656
|
|
|
|
6,882,189
|
|
Loss from
operations
|
|
|
(674,604
|
)
|
|
|
(673,545
|
)
|
|
|
(1,151,675
|
)
|
|
|
(3,020,298
|
)
|
|
|
(3,974,290
|
)
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
343,762
|
|
|
|
245,113
|
|
|
|
24,951
|
|
|
|
718,285
|
|
|
|
251,814
|
|
Foreign exchange gain
(loss) - net
|
|
|
413,529
|
|
|
|
(635,103
|
)
|
|
|
41,038
|
|
|
|
(941,245
|
)
|
|
|
122,515
|
|
Gain on disposal of
investments
|
|
|
—
|
|
|
|
—
|
|
|
|
45,863
|
|
|
|
—
|
|
|
|
125,274
|
|
Changes in the fair
value of an instrument recognized at fair value
|
|
|
(79,446
|
)
|
|
|
170,010
|
|
|
|
—
|
|
|
|
101,702
|
|
|
|
—
|
|
Other - net
|
|
|
37,289
|
|
|
|
24,785
|
|
|
|
53,605
|
|
|
|
83,345
|
|
|
|
49,680
|
|
|
|
|
715,134
|
|
|
|
(195,195
|
)
|
|
|
165,457
|
|
|
|
(37,913
|
)
|
|
|
549,283
|
|
Income (loss) from
continuing operations before income taxes
|
|
|
40,530
|
|
|
|
(868,740
|
)
|
|
|
(986,218
|
)
|
|
|
(3,058,211
|
)
|
|
|
(3,425,007
|
)
|
Income tax
expense
|
|
|
(263
|
)
|
|
|
—
|
|
|
|
—
|
|
|
|
(263
|
)
|
|
|
—
|
|
Net (loss) income
attributable to shareholders of GigaMedia
|
|
|
40,267
|
|
|
|
(868,740
|
)
|
|
|
(986,218
|
)
|
|
|
(3,058,474
|
)
|
|
|
(3,425,007
|
)
|
Earnings (loss) per
share attributable to GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
|
0.00
|
|
|
|
(0.08
|
)
|
|
|
(0.09
|
)
|
|
|
(0.28
|
)
|
|
|
(0.31
|
)
|
Diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) from
continuing operations
|
|
|
0.00
|
|
|
|
(0.08
|
)
|
|
|
(0.09
|
)
|
|
|
(0.28
|
)
|
|
|
(0.31
|
)
|
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
|
|
12/31/2022
|
|
|
09/30/2022
|
|
|
12/31/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
38,794,467
|
|
|
|
39,243,562
|
|
|
|
41,455,445
|
|
Marketable
securities-current
|
|
|
8,132,000
|
|
|
|
8,132,000
|
|
|
|
—
|
|
Accounts receivable -
net
|
|
|
199,109
|
|
|
|
193,988
|
|
|
|
264,890
|
|
Prepaid
expenses
|
|
|
60,059
|
|
|
|
479,308
|
|
|
|
400,954
|
|
Restricted
cash
|
|
|
312,823
|
|
|
|
312,737
|
|
|
|
306,411
|
|
Other
receivables
|
|
|
374,025
|
|
|
|
397,454
|
|
|
|
473
|
|
Other current
assets
|
|
|
135,624
|
|
|
|
142,483
|
|
|
|
154,344
|
|
Total current
assets
|
|
|
48,008,107
|
|
|
|
48,901,532
|
|
|
|
42,582,517
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
|
2,190,000
|
|
|
|
2,190,000
|
|
|
|
10,322,000
|
|
Property, plant &
equipment - net
|
|
|
102,729
|
|
|
|
69,648
|
|
|
|
87,806
|
|
Intangible assets -
net
|
|
|
19,421
|
|
|
|
4,313
|
|
|
|
11,746
|
|
Prepaid licensing and
royalty fees
|
|
|
176,530
|
|
|
|
214,820
|
|
|
|
35,017
|
|
Other assets
|
|
|
1,640,443
|
|
|
|
1,638,755
|
|
|
|
2,479,237
|
|
Total assets
|
|
|
52,137,230
|
|
|
|
53,019,068
|
|
|
|
55,518,323
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
52,660
|
|
|
|
39,304
|
|
|
|
118,343
|
|
Accrued
compensation
|
|
|
186,984
|
|
|
|
327,625
|
|
|
|
236,316
|
|
Accrued
expenses
|
|
|
964,203
|
|
|
|
1,269,049
|
|
|
|
1,199,039
|
|
Unearned
revenue
|
|
|
817,446
|
|
|
|
864,491
|
|
|
|
880,203
|
|
Other current
liabilities
|
|
|
616,151
|
|
|
|
785,621
|
|
|
|
782,630
|
|
Total current
liabilities
|
|
|
2,637,444
|
|
|
|
3,286,090
|
|
|
|
3,216,531
|
|
Other
liabilities
|
|
|
893,174
|
|
|
|
857,277
|
|
|
|
1,450,487
|
|
Total
liabilities
|
|
|
3,530,618
|
|
|
|
4,143,367
|
|
|
|
4,667,018
|
|
Total equity
|
|
|
48,606,612
|
|
|
|
48,875,701
|
|
|
|
50,851,305
|
|
Total liabilities and
equity
|
|
|
52,137,230
|
|
|
|
53,019,068
|
|
|
|
55,518,323
|
|
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF
OPERATIONS
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
12/31/2022
|
|
|
9/30/2022
|
|
|
12/31/2021
|
|
|
12/31/2022
|
|
|
12/31/2021
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Income (Loss) to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to GigaMedia
|
|
|
40,267
|
|
|
|
(868,740
|
)
|
|
|
(986,218
|
)
|
|
|
(3,058,474
|
)
|
|
|
(3,425,007
|
)
|
Depreciation
|
|
|
6,998
|
|
|
|
5,681
|
|
|
|
3,889
|
|
|
|
23,915
|
|
|
|
11,647
|
|
Amortization
|
|
|
2,803
|
|
|
|
2,055
|
|
|
|
2,254
|
|
|
|
9,222
|
|
|
|
8,758
|
|
Interest
income
|
|
|
(343,762
|
)
|
|
|
(245,113
|
)
|
|
|
(24,951
|
)
|
|
|
(718,285
|
)
|
|
|
(251,814
|
)
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
265
|
|
Income tax
expense
|
|
|
263
|
|
|
|
—
|
|
|
|
—
|
|
|
|
263
|
|
|
|
—
|
|
EBITDA
|
|
|
(293,431
|
)
|
|
|
(1,106,117
|
)
|
|
|
(1,005,026
|
)
|
|
|
(3,743,359
|
)
|
|
|
(3,656,151
|
)
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2022-financial-results-301787042.html
SOURCE GigaMedia