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 $3.78 per share.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia's digital entertainment service business FunTown develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in the table below.
(unaudited, all figures in US$ 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
(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
