TAIPEI, March 29,
2024 /PRNewswire/ -- GigaMedia Limited (NASDAQ:
GIGM) today announced its unaudited financial results for the
fourth quarter and full year of 2023.
Highlights
For 2023, GigaMedia reported revenues of $4.3 million, with a gross profit of $2.4 million, an operating loss of $3.2 million and the net loss of $3.5 million.
The revenues decreased by 23.2% in 2023. During 2023, we
terminated a non-performing game while streamlined others, and
correspondingly scaled back related workforce, costs and overhead.
As a result, we managed to slash operating expenditures down by
approximately 10.7%. All in all, the net loss before including
investment valuation adjustment was narrowed to $1.3 million, less than half of that in 2022.
However, pursuant to requirements of the accounting standards, we
recorded a $2.2 million valuation
loss on our investments, and the net loss became $3.5 million, $0.7
million higher than 2022.
On the balance sheet side, we maintained a solid financial
position with a small cash burn rate in 2023, and our cash, cash
equivalents and restricted cash amounted to $38.8 million at the end of 2023, slightly
decreased from $39.1 million at the
end of 2022.
In 2024, we will be devoted in developing AI-powered tools to
enhance efficiency on renovating contents in our casual games.
Besides in-house application, we will also explore potentials for
the tools to become a commercialized solution of platform for
publishing AI-assisted creation of products. We believe achieving
sophistication in AI is very crucial in boosting our productivity
and accelerate the growth of our business.
Fourth Quarter and Full Year Overview
- Consolidated 4Q revenues decreased by 18.8%
quarter-on-quarter mainly due to seasonality, and by 21.1%
year-over-year due to certain licensed games declined. Full year
revenues decreased by 23.2% to $4.3
million from $5.6 million in
2022.
- Loss from operations for 4Q was $0.6
million, representing a loss decrease from $0.9 million in the third quarter in 2023, as we
managed to reduce the operating costs and expenses. Full year
operating loss was $3.2 million,
which slightly increased from $3.0
million in 2022.
- The net asset value was approximately $3.87 per share as of the end of 2023.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Full Year 2023
GIGAMEDIA FY23
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
FY23
|
|
|
FY22
|
|
|
Change
(%)
|
|
Revenues
|
|
|
4,292
|
|
|
|
5,585
|
|
|
|
-23.2 %
|
|
Gross
Profit
|
|
|
2,446
|
|
|
|
3,250
|
|
|
|
-24.7 %
|
|
Loss from
Operations
|
|
|
(3,155)
|
|
|
|
(3,021)
|
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(3,463)
|
|
|
|
(2,752)
|
|
|
NM
|
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.31)
|
|
|
|
(0.25)
|
|
|
NM
|
|
EBITDA
(A)
|
|
|
(5,218)
|
|
|
|
(3,437)
|
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted Cash
|
|
|
38,783
|
|
|
|
39,107
|
|
|
|
-0.8 %
|
|
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.)
|
- Consolidated revenues for the year ended December 31, 2023 was $4.3
million, decreased from $5.6
million in the prior year. The decrease was mainly as
revenues from certain licensed games declined.
- Consolidated loss from operations for 2023 was
$3.2 million, compared to a loss of
$3.0 million in the last year. The
increase of loss was mainly due to the decline of
revenues.
- Consolidated net loss for 2023 was $3.5 million, increased from $2.8 million in the prior year. Loss per share
for 2023 was $0.31 per share,
compared to $0.25 last year.
- Cash, cash equivalents and restricted cash at the year end
of 2023 amounted to $38.8
million.
For the Fourth Quarter
GIGAMEDIA 4Q23
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except per
share amounts)
|
|
4Q23
|
|
|
3Q23
|
|
|
Change
(%)
|
|
|
4Q23
|
|
|
4Q22
|
|
|
Change
(%)
|
|
Revenues
|
|
|
870
|
|
|
|
1,071
|
|
|
|
-18.8 %
|
|
|
|
870
|
|
|
|
1,102
|
|
|
|
-21.1 %
|
|
Gross
Profit
|
|
|
504
|
|
|
|
583
|
|
|
|
-13.6 %
|
|
|
|
504
|
|
|
|
626
|
|
|
|
-19.5 %
|
|
Loss from
Operations
|
|
|
(645)
|
|
|
|
(893)
|
|
|
NM
|
|
|
|
(645)
|
|
|
|
(675)
|
|
|
NM
|
|
Net Income (Loss)
Attributable to
GigaMedia
|
|
|
(2,082)
|
|
|
|
(507)
|
|
|
NM
|
|
|
|
(2,082)
|
|
|
|
347
|
|
|
NM
|
|
Net Income (Loss)
Per Share Attributable
to GigaMedia, Diluted
|
|
|
(0.19)
|
|
|
|
(0.05)
|
|
|
NM
|
|
|
|
(0.19)
|
|
|
|
0.03
|
|
|
NM
|
|
EBITDA
(A)
|
|
|
(2,586)
|
|
|
|
(946)
|
|
|
NM
|
|
|
|
(2,586)
|
|
|
|
13
|
|
|
NM
|
|
Cash, Cash
Equivalents and Restricted
Cash
|
|
|
38,783
|
|
|
|
38,823
|
|
|
|
-0.1 %
|
|
|
|
38,783
|
|
|
|
39,107
|
|
|
|
-0.8 %
|
|
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.)
|
Fourth-Quarter Financial Results
- Consolidated revenues for the fourth quarter of 2023
decreased by 18.8% quarter-on-quarter from $1.1 million to $0.9
million mainly due to seasonality, and decreased by 21.1%
year-over-year mainly as revenues from licensed games
declined.
- Consolidated loss from operations of the fourth quarter of
2023 was $0.6 million, compare to a
loss of $0.9 million in the last
quarter.
- Consolidated net loss of the fourth quarter of 2023 was
$2.6 million, increased from a net
loss of $0.9 million in the last
quarter, mainly due to a valuation loss of $2.2 million in investments.
- Cash, cash equivalents and restricted cash at the end of
the fourth quarter of 2023 amounted to $38.8
million, almost the same if compared to the prior
quarter.
Financial Position
GigaMedia maintained its solid financial position. Cash, cash
equivalents and restricted cash amounted to $38.8 million, or approximately $3.51 per share, along with zero bank loan. Our
shareholders' equity was approximately $42.8
million of as of December 31,
2023.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of March 29, 2024.
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 2022 Annual Report on Form 20-F filed with the U.S.
Securities and Exchange Commission as referenced below, actual
results may differ materially.
Since late 2023, we have being taking measures to re-examine
mechanisms in our legacy casual games and to reconstruct players'
ecosystem. While the effect would take some time to exhibit, we
believe that will lead to a healthier gross margin in the long-run
for our own offerings.
Meanwhile, our business strategies always include expanding
through mergers and acquisitions. "We will continue reviewing
strategic opportunities that would enable us to accelerate our
growth and enhance shareholders' value," stated 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
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 2023
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 2023 and its other filings
with the United States Securities and Exchange Commission.
(Tables to follow)
GIGAMEDIA
LIMITED
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(in thousands of US
dollars, except for earnings per share amounts)
|
|
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
31/12/2023
|
|
|
30/9/2023
|
|
|
31/12/2022
|
|
|
31/12/2023
|
|
|
31/12/2022
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
870
|
|
|
|
1,071
|
|
|
|
1,102
|
|
|
|
4,292
|
|
|
|
5,585
|
|
|
|
|
870
|
|
|
|
1,071
|
|
|
|
1,102
|
|
|
|
4,292
|
|
|
|
5,585
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of Digital
entertainment service revenues
|
|
|
366
|
|
|
|
488
|
|
|
|
476
|
|
|
|
1,846
|
|
|
|
2,335
|
|
|
|
|
366
|
|
|
|
488
|
|
|
|
476
|
|
|
|
1,846
|
|
|
|
2,335
|
|
Gross
profit
|
|
|
504
|
|
|
|
583
|
|
|
|
626
|
|
|
|
2,446
|
|
|
|
3,250
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development and
engineering
expenses
|
|
|
179
|
|
|
|
183
|
|
|
|
163
|
|
|
|
729
|
|
|
|
1,110
|
|
Selling and marketing
expenses
|
|
|
344
|
|
|
|
441
|
|
|
|
407
|
|
|
|
1,623
|
|
|
|
1,644
|
|
General and
administrative expenses and
others
|
|
|
626
|
|
|
|
846
|
|
|
|
731
|
|
|
|
3,242
|
|
|
|
3,515
|
|
Other
|
|
|
—
|
|
|
|
6
|
|
|
|
—
|
|
|
|
7
|
|
|
|
2
|
|
|
|
|
1,149
|
|
|
|
1,476
|
|
|
|
1,301
|
|
|
|
5,601
|
|
|
|
6,271
|
|
Loss from
operations
|
|
|
(645)
|
|
|
|
(893)
|
|
|
|
(675)
|
|
|
|
(3,155)
|
|
|
|
(3,021)
|
|
Non-operating income
(expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
518
|
|
|
|
453
|
|
|
|
344
|
|
|
|
1,811
|
|
|
|
718
|
|
Foreign exchange gain
(loss) - net
|
|
|
339
|
|
|
|
(236)
|
|
|
|
414
|
|
|
|
(34)
|
|
|
|
(941)
|
|
Gain on disposal of
investments
|
|
|
(1)
|
|
|
|
77
|
|
|
|
—
|
|
|
|
76
|
|
|
|
—
|
|
Changes in the fair
value of investment in
equity securities recognized at fair value
|
|
|
(2,293)
|
|
|
|
86
|
|
|
|
227
|
|
|
|
(2,174)
|
|
|
|
409
|
|
Other - net
|
|
|
—
|
|
|
|
6
|
|
|
|
37
|
|
|
|
13
|
|
|
|
83
|
|
|
|
|
(1,437)
|
|
|
|
386
|
|
|
|
1,022
|
|
|
|
(308)
|
|
|
|
269
|
|
Income (loss) before
income taxes
|
|
|
(2,082)
|
|
|
|
(507)
|
|
|
|
347
|
|
|
|
(3,463)
|
|
|
|
(2,752)
|
|
Income tax
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net (loss) income
attributable to shareholders
of GigaMedia
|
|
|
(2,082)
|
|
|
|
(507)
|
|
|
|
347
|
|
|
|
(3,463)
|
|
|
|
(2,752)
|
|
Earnings (loss) per
share attributable to
GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.19)
|
|
|
|
(0.05)
|
|
|
|
0.03
|
|
|
|
(0.31)
|
|
|
|
(0.25)
|
|
Diluted:
|
|
|
(0.19)
|
|
|
|
(0.05)
|
|
|
|
0.03
|
|
|
|
(0.31)
|
|
|
|
(0.25)
|
|
Weighted average shares
outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
Diluted
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
|
|
11,052
|
|
GIGAMEDIA
LIMITED
|
CONSOLIDATED BALANCE
SHEETS
|
(in thousands of US
dollars)
|
|
|
|
31/12/2023
|
|
|
30/9/2023
|
|
|
31/12/2022
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
38,470
|
|
|
|
38,510
|
|
|
|
38,794
|
|
Marketable securities -
current
|
|
|
—
|
|
|
|
—
|
|
|
|
7,950
|
|
Accounts receivable -
net
|
|
|
227
|
|
|
|
253
|
|
|
|
199
|
|
Prepaid
expenses
|
|
|
394
|
|
|
|
123
|
|
|
|
60
|
|
Restricted
cash
|
|
|
313
|
|
|
|
313
|
|
|
|
313
|
|
Other
receivables
|
|
|
2
|
|
|
|
364
|
|
|
|
374
|
|
Other current
assets
|
|
|
141
|
|
|
|
145
|
|
|
|
136
|
|
Total current
assets
|
|
|
39,547
|
|
|
|
39,708
|
|
|
|
47,826
|
|
|
|
|
|
|
|
|
|
|
|
Marketable securities -
noncurrent
|
|
|
5,036
|
|
|
|
9,433
|
|
|
|
2,371
|
|
Property, plant &
equipment - net
|
|
|
111
|
|
|
|
116
|
|
|
|
103
|
|
Intangible assets -
net
|
|
|
13
|
|
|
|
10
|
|
|
|
19
|
|
Prepaid licensing and
royalty fees
|
|
|
24
|
|
|
|
65
|
|
|
|
177
|
|
Other assets
|
|
|
1,365
|
|
|
|
1,348
|
|
|
|
1,640
|
|
Total assets
|
|
|
46,096
|
|
|
|
50,680
|
|
|
|
52,136
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
44
|
|
|
|
29
|
|
|
|
53
|
|
Accrued
compensation
|
|
|
396
|
|
|
|
321
|
|
|
|
187
|
|
Accrued
expenses
|
|
|
1,126
|
|
|
|
1,005
|
|
|
|
964
|
|
Unearned
revenue
|
|
|
573
|
|
|
|
812
|
|
|
|
817
|
|
Other current
liabilities
|
|
|
665
|
|
|
|
721
|
|
|
|
616
|
|
Total current
liabilities
|
|
|
2,804
|
|
|
|
2,888
|
|
|
|
2,637
|
|
Other
liabilities
|
|
|
495
|
|
|
|
562
|
|
|
|
893
|
|
Total
liabilities
|
|
|
3,299
|
|
|
|
3,450
|
|
|
|
3,530
|
|
Total equity
|
|
|
42,797
|
|
|
|
47,230
|
|
|
|
48,606
|
|
Total liabilities and
equity
|
|
|
46,096
|
|
|
|
50,680
|
|
|
|
52,136
|
|
GIGAMEDIA
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
(in thousands of US
dollars)
|
|
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
31/12/2023
|
|
|
30/9/2023
|
|
|
31/12/2022
|
|
|
31/12/2023
|
|
|
31/12/2022
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
Reconciliation of
Net Income (Loss)
to EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to
GigaMedia
|
|
|
(2,082)
|
|
|
|
(507)
|
|
|
|
347
|
|
|
|
(3,463)
|
|
|
|
(2,752)
|
|
Depreciation
|
|
|
11
|
|
|
|
11
|
|
|
|
7
|
|
|
|
44
|
|
|
|
24
|
|
Amortization
|
|
|
3
|
|
|
|
3
|
|
|
|
3
|
|
|
|
12
|
|
|
|
9
|
|
Interest
income
|
|
|
(518)
|
|
|
|
(453)
|
|
|
|
(344)
|
|
|
|
(1,811)
|
|
|
|
(718)
|
|
Interest
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Income tax
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(2,586)
|
|
|
|
(946)
|
|
|
|
13
|
|
|
|
(5,218)
|
|
|
|
(3,437)
|
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2023-financial-results-302103483.html
SOURCE GigaMedia