TAIPEI, Oct. 30,
2024 /PRNewswire/ -- 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
- Revenues increased by 6.7% quarter-on-quarter to approximately
$0.77 million from $0.72 million last quarter.
- Consolidated loss from operations for the third quarter of 2024
amounted to $1.01 million, slightly
reduced from a loss of $1.05 million
last quarter.
- The net asset value was around $3.78 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Third Quarter
|
GIGAMEDIA 3Q24
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
|
(unaudited, all
figures in US$ 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
|
) %
|
(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 third quarter of 2024 were
$0.77 million, representing an
increase of 6.7% compared to $0.72
million in the prior quarter, but decreased by 28.2%
year-over-year from $1.01 million the
same quarter last year.
- Consolidated gross profit increased by 3.3%
quarter-on-quarter to $0.37 million
from $0.36 million last quarter, but
decreased by 36.2% year-over-year from $0.58
million in the third quarter last year.
- Consolidated loss from operation of the third quarter of
2024 was $1.01 million, representing
a slight decrease in loss from $1.05
million from last quarter.
- Consolidated net loss of the third quarter of 2024 was
$0.32 million compared to
$0.61 million in last quarter.
- Cash, cash equivalents and restricted cash at the end of
the third quarter of 2024 was $35.3
million.
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.
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.
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)
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
|
|
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
|
|
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
|
)
|
View original
content:https://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2024-financial-results-302291489.html
SOURCE GigaMedia
