EX-99.1 2 gigm-ex991_6.htm EX-99.1 gigm-ex991_6.htm

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 Second-Quarter 2021

Financial Results

 

TAIPEI, Taiwan, July 30, 2021 – GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2021 unaudited financial results.

Comments from Management

 

In the second quarter of 2021, GigaMedia reported revenues of $1.23 million, with a gross profit $0.63 million, an operating loss of $1.08 million and the net loss of $0.84 million. Total revenues decreased by 15.3% if compared to the previous quarter.

 

The decrease in revenues was mainly due to seasonality and the dwindling in certain licensed games. While Taiwan experienced an outbreak of the COVID-19 pandemic in mid-May, we managed to minimize the disruption caused to our business operations.

 

“The first half year of 2021 was indeed tough for us,” said GigaMedia CEO James Huang, “but after weathering all these, we have gathered pace and are confident for a brighter second half year.”

 

Second Quarter Overview

•

Operating revenues decreased by approximately 15.3% quarter-on-quarter, to $1.23 million from $1.45 million in last quarter, and decreased by 32.9% year-over-year from $1.83 million the same period last year. The decrease was mainly due to seasonality and the slowdown of the upgrades and supports form our licensors affected by the COVID-19 pandemic.

•

Gross profit decreased by 20% to $0.63 million from $0.79 million in last quarter, and decreased by 35.3% compared to $0.98 million in the same period last year.

•

The net asset value was $4.73 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 browser/mobile games and casual games.

Unaudited consolidated results of GigaMedia are summarized in the table below.

For the Second Quarter

 

GIGAMEDIA 2Q21 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

 

(unaudited, all figures in US$ thousands, except per share amounts)

 

2Q21

 

 

1Q21

 

 

Change

(%)

 

 

2Q21

 

 

 

 

2Q20

 

 

Change

(%)

 

Revenues

 

 

1,225

 

 

 

1,446

 

 

 

-15.28

%

 

 

1,225

 

 

 

 

 

1,826

 

 

 

-32.91

%

Gross Profit

 

 

633

 

 

 

791

 

 

 

-19.97

%

 

 

633

 

 

 

 

 

978

 

 

 

-35.28

%

Loss from Operations

 

 

(1,079

)

 

 

(901

)

 

NM

 

 

 

(1,079

)

 

 

 

 

(549

)

 

NM

 

Net Loss Attributable to GigaMedia

 

 

(836

)

 

 

(875

)

 

NM

 

 

 

(836

)

 

 

 

 

(419

)

 

NM

 

Net Loss Per Share Attributable to GigaMedia, Diluted

 

 

(0.08

)

 

 

(0.08

)

 

NM

 

 

 

(0.08

)

 

 

 

 

(0.04

)

 

NM

 

EBITDA (A)

 

 

(911

)

 

 

(949

)

 

NM

 

 

 

(911

)

 

 

 

 

(634

)

 

NM

 

Cash , Cash Equivalents and Restricted Cash

 

 

43,650

 

 

 

44,446

 

 

 

-1.79

%

 

 

43,650

 

 

 

 

 

56,783

 

 

 

-23.12

%

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.)

 

Second-Quarter Financial Results

•

Consolidated revenues for the second quarter of 2021 decreased by 15.3% quarter-on-quarter to $1.23 million from $1.45 million in last quarter, and by 32.9% year-over-year from $1.83 million the same period last year.

•

Consolidated gross profit was $0.63 million, decreased by 20.0% quarter-on-quarter and 35.3% year-over-year.

•

Consolidated operating expenses were $1.71 million increased by 1.2% if compared to the first quarter of 2021, and increased by 12.2% if compared to the same period last year.

•

Consolidated loss from operation of the second quarter of 2021 was a loss of $1.08 million, increased from a loss of $0.90 million in the first quarter.

•

Net loss in the second quarter of 2021 was $0.84 million, decreased from a net loss of $0.87 million in the first quarter.

•

Cash, cash equivalents and restricted cash at the end of the second quarter of 2021 amounted to $43.7 million, slightly decreased by 1.8% from $44.4 million as of the end of the first quarter.

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounted to $43.7 million, or $3.95 per share, as of June 30, 2021.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of July 30, 2021. 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 2020 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

 

“In the second half of 2021, we will be committing ourselves to boosting the productivity of our in-house developed casual games, mainly by introducing fast-paced playability, building gamers’ sense of community to improve stickiness, and enhancing marketing effectiveness,” stated GigaMedia CEO James Huang.

 

Meanwhile, our management continues evaluating and pursuing prospects of strategic investment opportunities which are with potential to expand our business and create greater 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 second quarter 2021 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 2021 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

 

 

 

06/30/2021

 

 

03/31/2021

 

 

06/30/2020

 

 

06/30/2021

 

 

06/30/2020

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital entertainment service revenues

 

 

1,224,749

 

 

 

1,446,276

 

 

 

1,825,547

 

 

 

2,671,025

 

 

 

3,429,450

 

Operating costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of digital entertainment service revenues

 

 

591,687

 

 

 

655,757

 

 

 

847,906

 

 

 

1,247,444

 

 

 

1,525,099

 

Gross profit

 

 

633,062

 

 

 

790,519

 

 

 

977,641

 

 

 

1,423,581

 

 

 

1,904,351

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product development and engineering expenses

 

 

373,057

 

 

 

345,898

 

 

 

332,745

 

 

 

718,955

 

 

 

661,560

 

Selling and marketing expenses

 

 

376,914

 

 

 

397,033

 

 

 

367,529

 

 

 

773,947

 

 

 

778,004

 

General and administrative expenses

 

 

960,474

 

 

 

946,192

 

 

 

825,998

 

 

 

1,906,666

 

 

 

1,650,440

 

Other

 

 

2,103

 

 

 

2,599

 

 

 

(42

)

 

 

4,703

 

 

 

2,942

 

 

 

 

1,712,548

 

 

 

1,691,722

 

 

 

1,526,230

 

 

 

3,404,271

 

 

 

3,092,946

 

Loss from operations

 

 

(1,079,486

)

 

 

(901,203

)

 

 

(548,589

)

 

 

(1,980,690

)

 

 

(1,188,595

)

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

80,184

 

 

 

78,595

 

 

 

212,881

 

 

 

158,779

 

 

 

468,600

 

Foreign exchange (loss) gain - net

 

 

163,139

 

 

 

(49,357

)

 

 

(82,357

)

 

 

113,782

 

 

 

16,529

 

Other - net

 

 

176

 

 

 

(2,809

)

 

 

(1,404

)

 

 

(2,633

)

 

 

(1,702

)

 

 

 

243,499

 

 

 

26,429

 

 

 

129,120

 

 

 

269,928

 

 

 

483,427

 

Loss from continuing operations before income taxes

 

 

(835,987

)

 

 

(874,774

)

 

 

(419,469

)

 

 

(1,710,762

)

 

 

(705,168

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net loss attributable to shareholders of GigaMedia

 

 

(835,987

)

 

 

(874,774

)

 

 

(419,469

)

 

 

(1,710,762

)

 

 

(705,168

)

Loss per share attributable to GigaMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

(0.08

)

 

 

(0.08

)

 

 

(0.04

)

 

 

(0.15

)

 

 

(0.06

)

Diluted

 

 

(0.08

)

 

 

(0.08

)

 

 

(0.04

)

 

 

(0.15

)

 

 

(0.06

)

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 SHEET

 

 

06/30/2021

 

 

03/31/2021

 

 

06/30/2020

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

43,350,182

 

 

 

44,146,308

 

 

 

56,247,678

 

Accounts receivable - net

 

 

282,780

 

 

 

281,945

 

 

 

349,450

 

Prepaid expenses

 

 

242,488

 

 

 

393,587

 

 

 

228,794

 

Restricted cash

 

 

300,000

 

 

 

300,000

 

 

 

535,153

 

Other receivables

 

 

52,422

 

 

 

25,937

 

 

 

203,671

 

Other current assets

 

 

154,622

 

 

 

156,622

 

 

 

142,230

 

Total current assets

 

 

44,382,494

 

 

 

45,304,399

 

 

 

57,706,976

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities - noncurrent

 

 

10,000,000

 

 

 

10,000,000

 

 

 

—

 

Property, plant & equipment - net

 

 

48,349

 

 

 

38,860

 

 

 

7,740

 

Intangible assets - net

 

 

9,625

 

 

 

11,596

 

 

 

17,111

 

Prepaid licensing and royalty fees

 

 

73,762

 

 

 

108,878

 

 

 

184,365

 

Other assets

 

 

2,586,685

 

 

 

2,481,910

 

 

 

290,687

 

Total assets

 

 

57,100,915

 

 

 

57,945,643

 

 

 

58,206,879

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

44,870

 

 

 

88,009

 

 

 

69,147

 

Accrued compensation

 

 

279,896

 

 

 

161,287

 

 

 

278,622

 

Accrued expenses

 

 

1,138,777

 

 

 

1,083,293

 

 

 

1,321,262

 

Unearned revenue

 

 

930,026

 

 

 

949,396

 

 

 

1,058,940

 

Other current liabilities

 

 

787,009

 

 

 

740,286

 

 

 

627,162

 

Total current liabilities

 

 

3,180,578

 

 

 

3,022,271

 

 

 

3,355,133

 

Other liabilities

 

 

1,636,271

 

 

 

1,655,437

 

 

 

3,653

 

Total liabilities

 

 

4,816,849

 

 

 

4,677,708

 

 

 

3,358,786

 

Total equity

 

 

52,284,066

 

 

 

53,267,935

 

 

 

54,848,093

 

Total liabilities and equity

 

 

57,100,915

 

 

 

57,945,643

 

 

 

58,206,879

 

 

 

 

 

GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

 

 

 

 

Three months ended

 

 

Six months ended

 

 

 

06/30/2021

 

 

03/31/2021

 

 

06/30/2020

 

 

06/30/2021

 

 

06/30/2020

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Reconciliation of Net Loss to EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to GigaMedia

 

 

(835,987

)

 

 

(874,774

)

 

 

(419,469

)

 

 

(1,710,762

)

 

 

(705,168

)

Depreciation

 

 

2,920

 

 

 

1,902

 

 

 

535

 

 

 

4,822

 

 

 

889

 

Amortization

 

 

2,242

 

 

 

2,010

 

 

 

(2,257

)

 

 

4,252

 

 

 

2,400

 

Interest income

 

 

(80,184

)

 

 

(78,595

)

 

 

(212,881

)

 

 

(158,779

)

 

 

(468,600

)

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax (benefit) expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

EBITDA

 

 

(911,009

)

 

 

(949,457

)

 

 

(634,072

)

 

 

(1,860,467

)

 

 

(1,170,479

)