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 First-Quarter 2020 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: April 30, 2020 |
By: /s/ HUANG, CHENG-MING |
|
|
(Signature) |
|
|
Name: HUANG, CHENG-MING |
|
|
Title: Chief Executive Officer |
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 First-Quarter 2020 Financial Results
TAIPEI, Taiwan, April 30, 2020 – GigaMedia Limited (NASDAQ: GIGM) today announced its first-quarter 2020 unaudited financial results.
Comments from Management
For the first quarter of 2020, GigaMedia reported revenues of $1.60 million, with a gross profit of $0.93 million, an operating loss of $0.64 million and the net loss of $0.29 million. Total revenues increased by 6.6% if compared to the previous quarter, and net loss was similar.
“The pandemic of COVID-19 only mildly affected our operations in Taiwan and Hong Kong,” said GigaMedia CEO James Huang. “While it has indeed caused disruptions to our offline marketing and operating activities, we managed to mitigate its impact, and continued improving the productivity in our existing products and making progress in developing new offerings.”
First Quarter Overview
|
|
● |
Operating revenue increased by $0.10 million or 6.6% in quarter-on-quarter comparison, and increased by 8.2% in year-over-year comparison. |
|
|
● |
Loss from operations amounted to approximately $0.64 million and net loss approximately $0.29 million, comparable to the fourth quarter of 2019 and slightly improved when compared with the same quarter last year. |
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia’s digital entertainment service business FunTown develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on mobile games and casual games. Unaudited consolidated results of GigaMedia are summarized in the table below.
For the First Quarter
|
GIGAMEDIA 1Q20 UNAUDITED CONSOLIDATED FINANCIAL RESULTS |
|
|||||||||||||||||||||||
|
(unaudited, in US$ thousands, except for percentages and per share amounts) |
|
1Q20 |
|
|
4Q19 |
|
|
Change (%) |
|
|
1Q20 |
|
|
1Q19 |
|
|
Change (%) |
|
||||||
|
Revenues |
|
$ |
1,604 |
|
|
$ |
1,504 |
|
|
|
6.6 |
% |
|
$ |
1,604 |
|
|
$ |
1,483 |
|
|
|
8.2 |
% |
|
Gross Profit |
|
|
927 |
|
|
|
1,025 |
|
|
|
(9.6 |
)% |
|
|
927 |
|
|
|
738 |
|
|
|
25.6 |
% |
|
Loss from Operations |
|
|
(640 |
) |
|
|
(399 |
) |
|
NM |
|
|
|
(640 |
) |
|
|
(949 |
) |
|
NM |
|
||
|
Net Loss Attributable to GigaMedia |
|
|
(286 |
) |
|
|
(271 |
) |
|
NM |
|
|
|
(286 |
) |
|
|
(532 |
) |
|
NM |
|
||
|
Loss Per Share Attributable to GigaMedia, Diluted |
|
|
(0.03 |
) |
|
|
(0.02 |
) |
|
NM |
|
|
|
(0.03 |
) |
|
|
(0.05 |
) |
|
NM |
|
||
|
EBITDA (A) |
|
|
(536 |
) |
|
|
(574 |
) |
|
NM |
|
|
|
(536 |
) |
|
|
(876 |
) |
|
NM |
|
||
|
Cash, Cash Equivalents and Restricted Cash |
|
|
57,311 |
|
|
|
58,274 |
|
|
|
(1.7 |
)% |
|
|
57,311 |
|
|
|
58,494 |
|
|
|
(2.0 |
)% |
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.) |
First-Quarter Financial Results
|
|
● |
Consolidated revenues for the first quarter of 2020 increased by 6.6% quarter-on-quarter to $1.60 million, from $1.50 million in the fourth quarter of 2019, or by 8.2% year-over-year from $1.48 million in the first quarter of 2019. |
|
|
● |
Consolidated gross profit decreased to $0.93 million from $1.03 million in last quarter but increased by 25.6% from $0.74 million in the same quarter last year. |
|
|
● |
Consolidated operating expenses were $1.57 million in the first quarter of 2020, representing an increase by $0.14 million quarter-on-quarter, or a decrease by $0.12 million from $1.69 million year-over-year. |
|
|
● |
Loss from operation for the first quarter of 2020 was approximately $0.64 million, comparable to a loss of $0.40 million last quarter and approximately a loss of $0.95 million in the first quarter of 2019. |
|
|
● |
Net loss for the first quarter of 2020 was $0.29 million, approximately comparable to such amount in the fourth quarter of 2019, and improved by $0.25 million when compared with the net loss of $0.53 million in the same quarter last year. |
|
|
● |
Cash, cash equivalents and restricted cash at the first quarter-end of 2020 accounted for $57.31 million, which decreased by $0.96 million from the end of 2019. |
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $57.31 million, or approximately $5.19 per share as of March 31, 2020.
Business Outlook
The following forward-looking statements reflect GigaMedia’s expectations as of April 30, 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 2019 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.
In following quarters, we will continue developing new offerings to enhance the variety of our product lines, while our marketing strategies will adjust swiftly, as in the current coronavirus situation, stay-home requirement may boost sales of online business on the one hand, but prevailing economic uncertainties and weakened consumer confidence may discourage spending on entertainment on the other hand.
“In this time of uncertainty, we don’t just wait out the storm. We practice frugality and adapt proactively while focusing on sharpening our core competence,” stated CEO James Huang, “so that we will get well prepared when the storm is over.”
Meanwhile, our business strategies always include expanding through mergers and acquisitions. “We will also continue reviewing potential targets that have strategic capacity to accelerate our growth and enhance shareholders’ value,” said CEO James Huang.
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
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.
For Q&A regarding the first quarter 2020 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. GigaMedia’s digital entertainment service business develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on browser/mobile games and casual games. More information on GigaMedia can be obtained from www.gigamedia.com.
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 2020 and its other filings with the United States Securities and Exchange Commission.
# # #
(Tables to follow)
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
Three months ended |
|
|||||||||||
|
|
|
3/31/2020 |
|
|
12/31/2019 |
|
|
|
|
3/31/2019 |
|
|||
|
|
|
unaudited |
|
|
unaudited |
|
|
|
|
unaudited |
|
|||
|
|
|
USD |
|
|
USD |
|
|
|
|
USD |
|
|||
|
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment service revenues |
|
$ |
1,603,904 |
|
|
$ |
1,503,848 |
|
|
|
|
$ |
1,483,233 |
|
|
Operating costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of digital entertainment service revenues |
|
|
677,194 |
|
|
|
479,341 |
|
|
|
|
|
744,901 |
|
|
Gross profit |
|
|
926,710 |
|
|
|
1,024,507 |
|
|
|
|
|
738,332 |
|
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development and engineering expenses |
|
|
328,815 |
|
|
|
213,241 |
|
|
|
|
|
320,494 |
|
|
Selling and marketing expenses |
|
|
410,475 |
|
|
|
427,090 |
|
|
|
|
|
526,003 |
|
|
General and administrative expenses |
|
|
824,442 |
|
|
|
571,562 |
|
|
|
|
|
835,987 |
|
|
Impairment losses |
|
|
— |
|
|
|
208,921 |
|
|
|
|
|
— |
|
|
Other |
|
|
2,984 |
|
|
|
2,957 |
|
|
|
|
|
5,214 |
|
|
|
|
|
1,566,716 |
|
|
|
1,423,771 |
|
|
|
|
|
1,687,698 |
|
|
Loss from operations |
|
|
(640,006 |
) |
|
|
(399,264 |
) |
|
|
|
|
(949,366 |
) |
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income |
|
|
255,719 |
|
|
|
322,587 |
|
|
|
|
|
381,799 |
|
|
Foreign exchange (loss) gain - net |
|
|
98,887 |
|
|
|
(84,774 |
) |
|
|
|
|
(11,402 |
) |
|
Other - net |
|
|
(298 |
) |
|
|
(110,020 |
) |
|
|
|
|
46,912 |
|
|
|
|
|
354,308 |
|
|
|
127,793 |
|
|
|
|
|
417,309 |
|
|
Loss before income taxes |
|
|
(285,698 |
) |
|
|
(271,471 |
) |
|
|
|
|
(532,057 |
) |
|
Income tax benefit (expense) |
|
|
— |
|
|
|
— |
|
|
|
|
|
— |
|
|
Net loss attributable to shareholders of GigaMedia |
|
$ |
(285,698 |
) |
|
$ |
(271,471 |
) |
|
|
|
$ |
(532,057 |
) |
|
Loss per share attributable to GigaMedia |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted: |
|
$ |
(0.03 |
) |
|
$ |
(0.02 |
) |
|
|
|
$ |
(0.05 |
) |
|
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
11,052,235 |
|
|
|
11,052,235 |
|
|
|
|
|
11,052,235 |
|
|
Diluted |
|
|
11,052,235 |
|
|
|
11,052,235 |
|
|
|
|
|
11,052,235 |
|
CONSOLIDATED BALANCE SHEETS
|
|
|
3/31/2020 |
|
|
12/31/2019 |
|
|
3/31/2019 |
|
|||
|
|
|
unaudited |
|
|
audited |
|
|
unaudited |
|
|||
|
|
|
USD |
|
|
USD |
|
|
USD |
|
|||
|
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
56,777,472 |
|
|
$ |
57,742,696 |
|
|
$ |
57,976,503 |
|
|
Accounts receivable - net |
|
|
355,225 |
|
|
|
368,445 |
|
|
|
589,520 |
|
|
Prepaid expenses |
|
|
276,010 |
|
|
|
112,243 |
|
|
|
208,919 |
|
|
Restricted cash |
|
|
533,436 |
|
|
|
530,984 |
|
|
|
517,815 |
|
|
Other receivables |
|
|
238,396 |
|
|
|
261 |
|
|
|
375,192 |
|
|
Other current assets |
|
|
148,757 |
|
|
|
138,601 |
|
|
|
127,377 |
|
|
Total current assets |
|
|
58,329,296 |
|
|
|
58,893,230 |
|
|
|
59,795,326 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant & equipment - net |
|
|
8,117 |
|
|
|
— |
|
|
|
100,148 |
|
|
Intangible assets - net |
|
|
17,965 |
|
|
|
— |
|
|
|
32,492 |
|
|
Prepaid licensing and royalty fees |
|
|
210,530 |
|
|
|
43,915 |
|
|
|
383,681 |
|
|
Other assets |
|
|
285,319 |
|
|
|
285,071 |
|
|
|
1,034,278 |
|
|
Total assets |
|
$ |
58,851,227 |
|
|
$ |
59,222,216 |
|
|
$ |
61,345,925 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
Short-term borrowings |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Accounts payable |
|
|
60,405 |
|
|
|
64,337 |
|
|
|
98,921 |
|
|
Accrued compensation |
|
|
156,948 |
|
|
|
200,455 |
|
|
|
134,243 |
|
|
Accrued expenses |
|
|
1,449,553 |
|
|
|
1,079,234 |
|
|
|
1,228,483 |
|
|
Unearned revenue |
|
|
1,285,399 |
|
|
|
1,364,749 |
|
|
|
1,290,792 |
|
|
Other current liabilities |
|
|
715,877 |
|
|
|
874,434 |
|
|
|
177,073 |
|
|
Total current liabilities |
|
|
3,668,182 |
|
|
|
3,583,209 |
|
|
|
2,929,512 |
|
|
Other liabilities |
|
|
7,337 |
|
|
|
94,385 |
|
|
|
779,919 |
|
|
Total liabilities |
|
|
3,675,519 |
|
|
|
3,677,594 |
|
|
|
3,709,431 |
|
|
Total equity |
|
|
55,175,708 |
|
|
|
55,544,622 |
|
|
|
57,636,494 |
|
|
Total liabilities and equity |
|
$ |
58,851,227 |
|
|
$ |
59,222,216 |
|
|
$ |
61,345,925 |
|
Reconciliations of Non-GAAP Results of Operations
|
|
|
Three months ended |
|
|||||||||
|
|
|
3/31/2020 |
|
|
12/31/2019 |
|
|
3/31/2019 |
|
|||
|
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|||
|
|
|
USD |
|
|
USD |
|
|
USD |
|
|||
|
Reconciliation of Net Income (Loss) to EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable to GigaMedia |
|
$ |
(285,698 |
) |
|
$ |
(271,471 |
) |
|
$ |
(532,057 |
) |
|
Depreciation |
|
|
354 |
|
|
|
10,888 |
|
|
|
25,388 |
|
|
Amortization |
|
|
4,657 |
|
|
|
9,669 |
|
|
|
12,899 |
|
|
Interest income |
|
|
(255,719 |
) |
|
|
(322,587 |
) |
|
|
(381,799 |
) |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
Income tax (benefit) expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
EBITDA |
|
$ |
(536,406 |
) |
|
$ |
(573,501 |
) |
|
$ |
(875,569 |
) |