EX-99

EX-99 2 gigm-ex99.htm EX-99 EX-99

Exhibit 99.1


FOR IMMEDIATE RELEASE	For further information contact:

	Investor Relations Department
	Country/City Code 8862 Tel: 2656-8096
	IR@gigamedia.com.tw

GigaMedia Announces Third-Quarter 2023

Financial Results

TAIPEI, Taiwan, October 31, 2023 – GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2023 unaudited financial results.

Comments from Management

In the third quarter of 2023, GigaMedia reported revenues of $1.07 million, with a gross profit of $0.58 million, an operating loss of $0.89 million and a net loss of $0.51 million. Total revenues increased by 4.5% and gross profit by 3.0% if compared to last quarter, while gross profit margin at 54.4% was slightly lower than 55.2% last quarter.

While this quarter saw the first post-COVID summer vacation in Taiwan and Hong Kong, where people tended to travel more and spent less time on digital entertainments, we managed to keep growth from last quarter and have the net loss reduced.

Third Quarter Overview

•

Revenues increased by 4.5% quarter-on-quarter to approximately $1.07 million from $1.03 million last quarter.

•

Consolidated loss from operations for the third quarter of 2023 amounted to $0.89 million, representing a reduction of loss from $0.92 million last quarter.

•

The net asset value was around $4.27 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 3Q23 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)	3Q23			2Q23			Change (%)			3Q23			3Q22			Change (%)
Revenues		1,071			1,025			4.49	%		1,071			1,575			-32.00	%
Gross Profit		583			566			3.00	%		583			949			-38.57	%
Loss from Operations		(893	)		(919	)	NM				(893	)		(674	)	NM
Net Loss Attributable to GigaMedia		(507	)		(562	)	NM				(507	)		(869	)	NM
Net Loss Per Share Attributable to GigaMedia, Diluted		(0.05	)		(0.05	)	NM				(0.05	)		(0.08	)	NM
EBITDA (A)		(946	)		(982	)	NM				(946	)		(1,106	)	NM
Cash, Cash Equivalent and Restricted Cash		38,823			37,775			2.77	%		38,823			39,556			-1.85	%

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 2023 were $1.07 million, representing an increase of 4.5% compared to $1.03 million in the prior quarter, but decreased by 32.0% year-over-year from $1.58 million the same quarter last year.

•

Consolidated gross profit increased by 3.0% quarter-on-quarter to $0.58 million from $0.57 million last quarter, but decreased by 38.6% year-over-year from $0.95 million in the third quarter last year.

•

Consolidated loss from operation of the third quarter of 2023 was $0.89 million, representing a slight decrease in loss from $0.92 million from last quarter.

•

Consolidated net loss of the third quarter of 2023 was $0.51 million compared to $0.56 million in last quarter.

•

Cash, cash equivalents and restricted cash at the end of the third quarter of 2023 was $38.8 million.

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $38.8 million as of September 30, 2023, or $3.51 per share.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of October 31, 2023. 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 2022 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

"While the inflation is forecast to decline steadily, consumer sentiment still appears slow to recover," said GigaMedia CEO James Huang. "But we are cautiously optimistic for the coming quarter, where

we will be dedicated to reaching a broader customer base and improving our revenue generation mechanism.”

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 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 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 2023 and its other filings with the United States Securities and Exchange Commission.

# # #

(Tables to follow)

GIGAMEDIA LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS


	Three months ended									Nine months ended
	09/30/2023			06/30/2023			09/30/2022			09/30/2023			09/30/2022
	unaudited			unaudited			unaudited			unaudited			unaudited
	USD			USD			USD			USD			USD
Operating revenues
Digital entertainment service revenues		1,071,363			1,025,056			1,574,971			3,421,771			4,483,833
		1,071,363			1,025,056			1,574,971			3,421,771			4,483,833
Operating costs
Cost of Digital entertainment service revenues		488,665			458,667			625,992			1,480,467			1,859,268
		488,665			458,667			625,992			1,480,467			1,859,268
Gross profit		582,698			566,389			948,979			1,941,304			2,624,565
Operating expenses
Product development and engineering expenses		183,682			188,457			303,838			550,331			947,241
Selling and marketing expenses		440,845			406,876			425,498			1,278,811			1,237,602
General and administrative expenses and others		845,761			890,636			892,368			2,616,052			2,783,658
Other		5,774			(101	)		820			6,755			1,758
		1,476,062			1,485,868			1,622,524			4,451,949			4,970,259
Loss from operations		(893,364	)		(919,479	)		(673,545	)		(2,510,645	)		(2,345,694	)
Non-operating income (expense)
Interest income		453,205			435,038			245,113			1,292,793			374,523
Foreign exchange loss - net		(236,221	)		(135,898	)		(635,103	)		(372,946	)		(1,354,774	)
Gain on disposal of investments		76,885			—			—			76,885			—
Changes in the fair value of an instrument recognized at fair value		86,123			52,092			170,010			119,486			181,148
Other - net		6,336			6,659			24,785			13,103			46,056
		386,328			357,891			(195,195	)		1,129,321			(753,047	)
Loss from continuing operations before income taxes		(507,036	)		(561,588	)		(868,740	)		(1,381,324	)		(3,098,741	)
Income tax expense		—			—			—			—			—
Net loss attributable to shareholders of GigaMedia		(507,036	)		(561,588	)		(868,740	)		(1,381,324	)		(3,098,741	)
Loss per share attributable to GigaMedia
Basic:		(0.05	)		(0.05	)		(0.08	)		(0.12	)		(0.28	)
Diluted:		(0.05	)		(0.05	)		(0.08	)		(0.12	)		(0.28	)
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


	09/30/2023		06/30/2023		09/30/2022
	unaudited		unaudited		unaudited
	USD		USD		USD
Assets
Current assets
Cash and cash equivalents		38,510,253		37,462,050		39,243,562
Marketable securities-current		—		7,950,000		8,132,000
Accounts receivable - net		252,757		187,385		193,988
Prepaid expenses		122,981		225,334		479,308
Restricted cash		312,777		312,762		312,737
Other receivables		364,671		765,741		397,454
Other current assets		144,963		118,950		142,483
Total current assets		39,708,402		47,022,222		48,901,532

Marketable securities - noncurrent		9,432,596		2,371,000		2,190,000
Property, plant & equipment - net		116,433		131,758		69,648
Intangible assets - net		9,849		13,188		4,313
Prepaid licensing and royalty fees		64,788		101,919		214,820
Other assets		1,347,570		1,510,307		1,638,755
Total assets		50,679,638		51,150,394		53,019,068

Liabilities and equity
Accounts payable		29,348		28,747		39,304
Accrued compensation		320,722		230,931		327,625
Accrued expenses		1,005,141		855,201		1,269,049
Unearned revenue		812,083		847,887		864,491
Other current liabilities		720,223		718,266		785,621
Total current liabilities		2,887,517		2,681,032		3,286,090

Other liabilities		562,396		714,650		857,277
Total liabilities		3,449,913		3,395,682		4,143,367
Total equity		47,229,725		47,754,712		48,875,701
Total liabilities and equity		50,679,638		51,150,394		53,019,068

GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS


	Three months ended									Nine months ended
	09/30/2023			06/30/2023			09/30/2022			09/30/2023			09/30/2022
	unaudited			unaudited			unaudited			unaudited			unaudited
	USD			USD			USD			USD			USD
Reconciliation of Net Income (Loss) to EBITDA
Net income (loss) attributable to GigaMedia		(507,036	)		(561,588	)		(868,740	)		(1,381,324	)		(3,098,741	)
Depreciation		10,894			11,259			5,681			32,479			16,917
Amortization		2,924			3,024			2,055			9,003			6,419
Interest income		(453,205	)		(435,038	)		(245,113	)		(1,292,793	)		(374,522	)
Interest expense		—			—			—			—			—
Income tax (benefit) expense		—			—			—			—			—
EBITDA		(946,423	)		(982,343	)		(1,106,117	)		(2,632,635	)		(3,449,927	)