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 April, 2020
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 Fourth-Quarter and the Full Year 2019 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.
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GigaMedia Limited |
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(Registrant) |
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Date: April 07, 2020 |
By: /s/ HUANG, CHENG-MING |
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(Signature) |
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Name: HUANG, CHENG-MING |
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Title: Chief Executive Officer |
Exhibit 99.1
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FOR IMMEDIATE RELEASE |
For further information contact: |
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Investor Relations Department |
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Country/City Code 8862 Tel: 2656-8096 |
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IR@gigamedia.com.tw |
GigaMedia Announces Fourth-Quarter and Full Year 2019 Financial Results
TAIPEI, Taiwan, April 7, 2020 – GigaMedia Limited (NASDAQ: GIGM) today announced its unaudited financial results for the fourth quarter and full year of 2019.
Highlights for Year Ended December 31, 2019
For 2019, GigaMedia reported revenues of $6.6 million, with a gross profit of $3.6 million, an operating loss of $2.9 million and the net loss of $1.5 million.
“In spite of the mild decrease in revenues,” said GigaMedia CEO James Huang, “in 2019 we continued improving our cost structure through strategic cost management, and applied effective KPIs to drive performance of departments across our Company.”
Compared to the prior year, the 2019 results exhibited overall improvements. Our gross margin rate has risen by 4.4% to 53.9% from 49.5% in 2018, and consequently the gross profit was even slightly higher than $3.5 million in the prior year, in spite of the decrease in revenues. The loss from operations was also cut by 40.1% from $4.8 million in 2018, and the net loss approximately halved.
“In the past year of 2019, we kept emphasizing on developing our in-house offerings,” continued GigaMedia CEO James Huang, “and in the fourth quarter, our new mobile platform of casual games passed the closed and open beta testing tracks. It is now in trial operations, through which we are establishing marketing rhythm, expanding product lines, and strengthening customer’s loyalty.”
As for the current coronavirus (COVID-19) pandemic, CEO James Huang said, “While the virus ravages many countries in the world, our operations in Taiwan and Hong Kong have so far not been affected severely. Nonetheless, we have implemented strict hygiene and social distancing practices in our daily operations in order to protect the safety and health of our employees. We have also drawn up a contingency plan to ensure our business continuity against the escalating coronavirus situation.”
Fourth Quarter and Full Year Overview
-1-
|
l |
Loss from operations for 4Q was $0.3 million, representing a loss reduction from $0.5 million in 3Q, mainly due to a decrease in general and administrative expenses. Full year operating loss was $2.9 million, representing a loss reduction of $1.9 million from approximately $4.8 million for 2018. |
|
l |
The net asset value was approximately $5.04 per share as of the end of 2019. |
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia’s digital entertainment service business FunTown develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Full Year 2019
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GIGAMEDIA FY19 UNAUDITED CONSOLIDATED FINANCIAL RESULTS |
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|||||||||||
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(unaudited, all figures in US$ thousands, except per share amounts) |
|
FY19 |
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FY18 |
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Change (%) |
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|||
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Revenues |
|
|
6,645 |
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|
7,101 |
|
|
|
-6.4 |
% |
|
Gross Profit |
|
|
3,581 |
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|
|
3,516 |
|
|
|
1.8 |
% |
|
Loss from Operations |
|
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(2,891 |
) |
|
|
(4,823 |
) |
|
NM |
|
|
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Net Loss Attributable to GigaMedia |
|
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(1,535 |
) |
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(3,193 |
) |
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NM |
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Net Loss Per Share Attributable to GigaMedia, Diluted |
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(0.14 |
) |
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(0.29 |
) |
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NM |
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EBITDA (A) |
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(2,896 |
) |
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(4,360 |
) |
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NM |
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Cash, Restricted Cash and Cash Equivalents |
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58,274 |
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59,826 |
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-2.6 |
% |
NM= Not Meaningful
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(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.) |
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• |
Consolidated revenues for the year ended December 31, 2019 was $6.6 million, decreased from $7.1 million in the prior year. The decrease was mainly due to a decline in our licensed mobile games. |
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• |
Consolidated loss from operations for 2019 was $2.9 million, compared to a loss of $4.8 million in the last year. The decrease of loss was due to improved cost-effectiveness across the Company. |
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• |
Consolidated net loss for 2019 was $1.5 million, compared to a net loss of $3.2 million in the prior year. Loss per share for 2019 was $0.14 per share, compared to a loss of $0.29 per share for the prior year. |
For the Fourth Quarter
-2-
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GIGAMEDIA 4Q19 UNAUDITED CONSOLIDATED FINANCIAL RESULTS |
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(unaudited, all figures in US$ thousands, except per share amounts) |
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4Q19 |
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3Q19 |
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Change (%) |
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4Q19 |
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4Q18 |
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Change (%) |
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Revenues |
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1,504 |
|
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1,908 |
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-21.17 |
% |
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1,504 |
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1,619 |
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-7.10 |
% |
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Gross Profit |
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1,025 |
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1,049 |
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-2.29 |
% |
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1,025 |
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|
880 |
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16.48 |
% |
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Loss from Operations |
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(276 |
) |
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(544 |
) |
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NM |
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(276 |
) |
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(1,021 |
) |
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NM |
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Net Loss Attributable to GigaMedia |
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(148 |
) |
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(242 |
) |
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NM |
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(148 |
) |
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(503 |
) |
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NM |
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Net Loss Per Share Attributable to GigaMedia, Diluted |
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(0.01 |
) |
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(0.02 |
) |
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NM |
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(0.01 |
) |
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(0.05 |
) |
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NM |
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EBITDA (A) |
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(435 |
) |
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(585 |
) |
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NM |
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(435 |
) |
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(806 |
) |
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NM |
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Cash, Restricted Cash and Cash Equivalents |
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58,274 |
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58,164 |
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0.19 |
% |
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58,274 |
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59,826 |
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-2.59 |
% |
NM= Not Meaningful
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(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
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• |
Consolidated revenues for the fourth quarter of 2019 decreased by 21.2% quarter-on-quarter from $1.9 million to $1.5 million mainly due to seasonality, and decreased by 7.1% year-over-year mainly as revenues from certain licensed games dwindled. |
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Consolidated loss from operations of the fourth quarter of 2019 was $0.3 million, compared to a loss of $0.5 million in the last quarter. |
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• |
Consolidated net loss of the fourth quarter of 2019 was $0.1 million, slightly improved from a net loss of $0.2 million in the last quarter. |
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• |
Cash, restricted cash and cash equivalents at the end of the fourth quarter of 2019 amounted to $58.3 million, which slightly increased from $58.2 million at the end of the prior quarter. |
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• |
Consolidated EBITDA for the fourth quarter of 2019 was a loss of $0.4 million compared to a loss of $0.6 million in the third quarter of 2019. |
Financial Position
GigaMedia maintained its solid financial position. Cash, restricted cash and cash equivalents amounted to $58.3 million, or approximately $5.27 per share, along with zero bank loan and $55.7 million of shareholders’ equity, as of December 31, 2019.
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of April 7, 2020. 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 2018 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.
“It is very difficult to foretell anything in current global economic turmoil, even for our digital entertainment business, which is comparatively less affected,” said GigaMedia CEO James Huang, “but reassuringly, we have kept
-3-
abundant financial resources to weather the storm, and we will continue to boost productivities by improving existing products and services, introducing own offerings, along with adopting strategies of promoting customer relationships.”
In the meantime, the global economic downturn may exhibit good M&A chances for us, as potential targets may be available at bargain prices. Therefore, we will continue, very cautiously, seeking suitable strategic investment and acquisition targets for increasing corporate growth and maximizing shareholder value.
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 2019 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
-4-
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 2019 and its other filings with the United States Securities and Exchange Commission.
# # #
(Tables to follow)
-5-
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three months ended |
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Twelve months ended |
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12/31/2019 |
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09/30/2019 |
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12/31/2018 |
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12/31/2019 |
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12/31/2018 |
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unaudited |
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unaudited |
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unaudited |
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unaudited |
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audited |
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USD |
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USD |
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USD |
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USD |
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USD |
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Operating revenues |
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Digital entertainment service revenues |
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1,503,848 |
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1,908,261 |
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1,618,931 |
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6,644,924 |
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7,100,636 |
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Operating costs |
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|
|
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Cost of digital entertainment service revenues |
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479,341 |
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|
859,511 |
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739,324 |
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3,064,201 |
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|
|
3,584,875 |
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Gross profit |
|
|
1,024,507 |
|
|
|
1,048,750 |
|
|
|
879,607 |
|
|
|
3,580,723 |
|
|
|
3,515,761 |
|
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Operating expenses |
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Product development and engineering expenses |
|
|
213,241 |
|
|
|
326,419 |
|
|
|
215,625 |
|
|
|
1,185,299 |
|
|
|
1,091,445 |
|
|
Selling and marketing expenses |
|
|
427,090 |
|
|
|
461,653 |
|
|
|
576,256 |
|
|
|
1,995,285 |
|
|
|
3,296,636 |
|
|
General and administrative expenses |
|
|
571,563 |
|
|
|
800,015 |
|
|
|
860,903 |
|
|
|
3,182,212 |
|
|
|
3,684,054 |
|
|
Impairment losses |
|
|
85,199 |
|
|
|
— |
|
|
|
243,966 |
|
|
|
85,199 |
|
|
|
243,966 |
|
|
Other |
|
|
2,957 |
|
|
|
4,723 |
|
|
|
3,946 |
|
|
|
24,060 |
|
|
|
22,510 |
|
|
|
|
|
1,300,050 |
|
|
|
1,592,810 |
|
|
|
1,900,696 |
|
|
|
6,472,055 |
|
|
|
8,338,611 |
|
|
Loss from operations |
|
|
(275,543 |
) |
|
|
(544,060 |
) |
|
|
(1,021,089 |
) |
|
|
(2,891,332 |
) |
|
|
(4,822,850 |
) |
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Interest income |
|
|
322,587 |
|
|
|
364,539 |
|
|
|
333,338 |
|
|
|
1,483,375 |
|
|
|
1,302,145 |
|
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Interest expense |
|
|
(14,866 |
) |
|
|
— |
|
|
|
— |
|
|
|
(14,866 |
) |
|
|
— |
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Foreign exchange (loss) gain - net |
|
|
(84,774 |
) |
|
|
(62,487 |
) |
|
|
129,052 |
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|
|
(67,741 |
) |
|
|
266,255 |
|
|
Gain on disposal of property, plant and equipment |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
31 |
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Other - net |
|
|
(95,154 |
) |
|
|
119 |
|
|
|
56,162 |
|
|
|
(44,705 |
) |
|
|
61,358 |
|
|
|
|
|
127,793 |
|
|
|
302,171 |
|
|
|
518,552 |
|
|
|
1,356,063 |
|
|
|
1,629,789 |
|
|
Loss before income taxes |
|
|
(147,750 |
) |
|
|
(241,889 |
) |
|
|
(502,537 |
) |
|
|
(1,535,269 |
) |
|
|
(3,193,061 |
) |
|
Income tax benefit (expense) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
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Net loss attributable to shareholders of GigaMedia |
|
|
(147,750 |
) |
|
|
(241,889 |
) |
|
|
(502,537 |
) |
|
|
(1,535,269 |
) |
|
|
(3,193,061 |
) |
|
Loss per share attributable to GigaMedia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Basic: |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.05 |
) |
|
|
(0.14 |
) |
|
|
(0.29 |
) |
|
Diluted: |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.05 |
) |
|
|
(0.14 |
) |
|
|
(0.29 |
) |
|
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 |
|
-6-
CONSOLIDATED BALANCE SHEETS
|
|
|
12/31/2019 |
|
|
09/30/2019 |
|
|
12/31/2018 |
|
|||
|
|
|
unaudited |
|
|
unaudited |
|
|
audited |
|
|||
|
|
|
USD |
|
|
USD |
|
|
USD |
|
|||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
57,742,696 |
|
|
|
57,635,576 |
|
|
|
59,307,829 |
|
|
Accounts receivable - net |
|
|
368,445 |
|
|
|
591,302 |
|
|
|
523,004 |
|
|
Prepaid expenses |
|
|
112,243 |
|
|
|
142,819 |
|
|
|
122,434 |
|
|
Restricted cash |
|
|
530,984 |
|
|
|
528,387 |
|
|
|
517,815 |
|
|
Other receivables |
|
|
261 |
|
|
|
457,168 |
|
|
|
2,998 |
|
|
Other current assets |
|
|
138,601 |
|
|
|
165,295 |
|
|
|
120,802 |
|
|
Total current assets |
|
|
58,893,230 |
|
|
|
59,520,547 |
|
|
|
60,594,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant & equipment - net |
|
|
111,770 |
|
|
|
101,998 |
|
|
|
121,585 |
|
|
Intangible assets - net |
|
|
15,551 |
|
|
|
78,828 |
|
|
|
37,726 |
|
|
Prepaid licensing and royalty fees |
|
|
43,915 |
|
|
|
468,722 |
|
|
|
435,156 |
|
|
Other assets |
|
|
285,072 |
|
|
|
918,556 |
|
|
|
255,604 |
|
|
Total assets |
|
|
59,349,538 |
|
|
|
61,088,651 |
|
|
|
61,444,953 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
64,337 |
|
|
|
140,676 |
|
|
|
104,030 |
|
|
Accrued compensation |
|
|
200,455 |
|
|
|
371,212 |
|
|
|
170,470 |
|
|
Accrued expenses |
|
|
1,178,363 |
|
|
|
1,470,179 |
|
|
|
1,262,707 |
|
|
Unearned revenue |
|
|
1,364,749 |
|
|
|
1,504,176 |
|
|
|
1,369,769 |
|
|
Other current liabilities |
|
|
775,305 |
|
|
|
241,789 |
|
|
|
366,167 |
|
|
Total current liabilities |
|
|
3,583,209 |
|
|
|
3,728,032 |
|
|
|
3,273,143 |
|
|
Other liabilities |
|
|
94,385 |
|
|
|
662,530 |
|
|
|
— |
|
|
Total liabilities |
|
|
3,677,594 |
|
|
|
4,390,562 |
|
|
|
3,273,143 |
|
|
GigaMedia’s shareholders’ equity |
|
|
55,671,944 |
|
|
|
56,698,089 |
|
|
|
58,171,810 |
|
|
Total liabilities and equity |
|
|
59,349,538 |
|
|
|
61,088,651 |
|
|
|
61,444,953 |
|
-7-
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
|
|
|
Three months ended |
|
|
Twelve months ended |
|
||||||||||||||
|
|
|
12/31/2019 |
|
|
9/30/2019 |
|
|
12/31/2018 |
|
|
12/31/2019 |
|
|
12/31/2018 |
|
|||||
|
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|||||
|
|
|
USD |
|
|
USD |
|
|
USD |
|
|
USD |
|
|
USD |
|
|||||
|
Reconciliation of Net Income (Loss) to EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to GigaMedia |
|
|
(147,750 |
) |
|
|
(241,889 |
) |
|
|
(502,537 |
) |
|
|
(1,535,269 |
) |
|
|
(3,193,061 |
) |
|
Depreciation |
|
|
10,888 |
|
|
|
9,919 |
|
|
|
25,301 |
|
|
|
60,964 |
|
|
|
99,635 |
|
|
Amortization |
|
|
9,669 |
|
|
|
11,126 |
|
|
|
4,137 |
|
|
|
46,523 |
|
|
|
36,013 |
|
|
Interest income |
|
|
(322,587 |
) |
|
|
(364,539 |
) |
|
|
(333,338 |
) |
|
|
(1,483,375 |
) |
|
|
(1,302,145 |
) |
|
Interest expense |
|
|
14,866 |
|
|
|
— |
|
|
|
— |
|
|
|
14,866 |
|
|
|
— |
|
|
Income tax (benefit) expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
EBITDA |
|
|
(434,914 |
) |
|
|
(585,383 |
) |
|
|
(806,437 |
) |
|
|
(2,896,291 |
) |
|
|
(4,359,558 |
) |
-8-