GIGM GigaMedia Ltd

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON D.C. 20549

 

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15D-16 UNDER

THE SECURITIES EXCHANGE ACT OF 1934

 

For the month of October, 2024

Commission File Number: 000-30540

 

GIGAMEDIA LIMITED

8F, No.22, Lane 407, Section 2, Tiding Boulevard

Neihu District

Taipei, Taiwan (R.O.C.)

 

(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)

 

Form 20-F [ x ] Form 40-F [ ]

 

(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)

 

Yes [ ] No [ x ]

 

(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b) :82- .)

 

GIGAMEDIA LIMITED is submitting under cover of Form 6-K:

GigaMedia Announces Third-Quarter 2024 Financial Results (attached hereto as Exhibit 99.1)

 

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	GigaMedia Limited
	(Registrant)
Date: October 30, 2024	By: /s/ HUANG, CHENG-MING
	(Signature)
	Name: HUANG, CHENG-MING
	Title: Chief Executive Officer

 

 

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Exhibit 99.1

 

FOR IMMEDIATE RELEASE	For further information contact:
	Investor Relations Department
	Country/City Code 8862 Tel: 2656-8000
	IR@gigamedia.com.tw

 

GigaMedia Announces Third-Quarter 2024

Financial Results

 

TAIPEI, Taiwan, October 30, 2024 – GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2024 unaudited financial results.

Comments from Management

In the third quarter of 2024, GigaMedia reported revenues of $0.77 million, with a gross profit of $0.37 million, an operating loss of $1.01 million and a net loss of $0.32 million.

If compared to last quarter, the total revenues increased by 6.7% and gross profit by 3.3% , while gross profit margin at 48.4% was slightly lower than 49.9% last quarter.

In the following quarter, we will be enhancing the social networking function in our games to promote our players' community and to strengthen stickiness of our games.

 

Third Quarter Overview

 

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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 Third Quarter

GIGAMEDIA 3Q24 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)		3Q24				2Q24				Change (%)				3Q24				3Q23				Change (%)
Revenues			769				721				6.7	%			769				1,071				(28.2	)%
Gross Profit			372				360				3.3	%			372				583				(36.2	)%
Loss from Operations			(1,008	)			(1,048	)		NM					(1,008	)			(893	)		NM
Net Loss Attributable to GigaMedia			(320	)			(612	)		NM					(320	)			(507	)		NM
Loss Per Share Attributable to GigaMedia, Diluted			(0.03	)			(0.06	)		NM					(0.03	)			(0.05	)		NM
EBITDA (A)			(810	)			(1,116	)		NM					(810	)			(946	)		NM
Cash, Cash Equivalents and Restricted Cash			35,328				36,343				(2.8	)%			35,328				38,823				(9.0	)%

NM= Not Meaningful

 

 

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $35.3 million as of September 30, 2024, or $3.20 per share.

 

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of October 30, 2024. 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 2023 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

 

“For the following quarter, GigaMedia will continue the strategies of internally-driven growth by improving productivity of the existing games, executing effective marketing, and pursuing a steady expansion of customer base,” stated GigaMedia CEO James Huang.

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In the meantime, we will continue reviewing suitable prospects for strategic investment and acquisition targets to increase corporate growth and maximize shareholder value.

 

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 third quarter 2024 performance upon the release, investors may send the questions via email to IR@gigamedia.com.tw, and the responses will be replied individually.

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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 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 2024 and its other filings with the United States Securities and Exchange Commission.

 

 

# # #

 

 

 

(Tables to follow)

 

 

 

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GIGAMEDIA LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

		Three months ended												Six months ended
		9/30/2024				6/30/2024				9/30/2023				9/30/2024				9/30/2023
		unaudited				unaudited				unaudited				unaudited				unaudited
		USD				USD				USD				USD				USD
Operating revenues
Digital entertainment service revenues			769				721				1,071				2,214				3,421
			769				721				1,071				2,214				3,421
Operating costs
Cost of digital entertainment service revenues			397				361				488				1,137				1,480
			397				361				488				1,137				1,480
Gross profit			372				360				583				1,077				1,941
Operating expenses
Product development and engineering expenses			170				175				183				530				550
Selling and marketing expenses			375				348				441				1,101				1,279
General and administrative expenses			835				885				846				2,615				2,616
Other			—				—				6				1				7
			1,380				1,408				1,476				4,247				4,452
Loss from operations			(1,008	)			(1,048	)			(893	)			(3,170	)			(2,511	)
Non-operating income (expense)
Interest income			504				518				453				1,492				1,293
Foreign exchange loss - net			182				(87	)			(236	)			(180	)			(372	)
Gain on disposal of investments			—				—				77				—				77
Changes in the fair value of an instrument recognized at fair value			(6	)			3				86				7				119
Other-net			8				2				6				18				13
			688				436				386				1,337				1,130
Loss from continuing operations before income taxes			(320	)			(612	)			(507	)			(1,833	)			(1,381	)
Income tax expense			—				—				—				—				—
Net loss attributable to shareholders of GigaMedia			(320	)			(612	)			(507	)			(1,833	)			(1,381	)
Loss per share attributable to GigaMedia:
Basic			(0.03	)			(0.06	)			(0.05	)			(0.17	)			(0.12	)
Diluted			(0.03	)			(0.06	)			(0.05	)			(0.17	)			(0.12	)
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

 

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GIGAMEDIA LIMITED

CONSOLIDATED BALANCE SHEETS

		9/30/2024				6/30/2024				9/30/2023
		unaudited				unaudited				unaudited
		USD				USD				USD
Assets
Current assets
Cash and cash equivalents			35,015				36,030				38,510
Accounts receivable - net			157				198				253
Prepaid expenses			123				226				123
Restricted cash			313				313				313
Other receivables			392				496				364
Other current assets			144				142				145
Total current assets			36,144				37,405				39,708
Investment in securities - noncurrent			6,840				5,819				9,433
Property, plant & equipment - net			102				109				116
Intangible assets - net			5				8				10
Prepaid licensing and royalty fees			179				215				65
Other assets			1,244				1,264				1,348
Total assets			44,514				44,820				50,680
Liabilities and equity
Accounts payable			27				23				30
Accrued compensation			350				250				321
Accrued expenses			912				778				1,005
Unearned revenue			608				565				812
Other current liabilities			691				686				720
Total current liabilities			2,588				2,302				2,888
Other liabilities			154				254				562
Total liabilities			2,742				2,556				3,450
Total equity			41,772				42,264				47,230
Total liabilities and equity			44,514				44,820				50,680

 

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GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

 

		Three months ended												Six months ended
		9/30/2024				6/30/2024				9/30/2023				9/30/2024				9/30/2023
		unaudited				unaudited				unaudited				unaudited				unaudited
		USD				USD				USD				USD				USD
Reconciliation of Net Loss to EBITDA
Net loss attributable to GigaMedia			(320	)			(612	)			(507	)			(1,833	)			(1,381	)
Depreciation			12				12				11				36				32
Amortization			2				2				3				7				9
Interest income			(504	)			(518	)			(453	)			(1,492	)			(1,293	)
Interest expense			—				—				—				—				—
Income tax expense			—				—				—				—				—
EBITDA			(810	)			(1,116	)			(946	)			(3,282	)			(2,633	)

 

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