EX-99.1 2 gigm-ex991_23.htm EX-99.1 gigm-ex991_23.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 Third-Quarter 2021

Financial Results

 

TAIPEI, Taiwan, October 28, 2021 – GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2021 unaudited financial results.

Comments from Management

In the third quarter of 2021, GigaMedia reported revenues of $1.56 million, with a gross profit of $0.88 million, an operating loss of $0.84 million and a net loss of $0.73 million. Total revenues increased by 27.7% if compared to last quarter, and gross profit margin improved to 56.1% from 51.7% last quarter.

This third quarter saw a rebound of our revenues due to seasonality exhibited in certain of our licensed games. And the operating expenses were kept in check, resulting to a mild improvement in operating loss.

Meanwhile, we are closing to complete the development of our fast-paced remake of legacy casual games. We believe the remake, as a sustainable business model, will contribute to our steady growth and enhanced profitability for future years.

 

Third Quarter Overview

•

Revenues increased by 27.7% quarter-on-quarter to approximately $1.56 million from $1.23 million last quarter. The increase was mainly due to our efforts in promoting Tales Runner, a 15-year-old licensed game, during the summer vacation.

•

Consolidated loss from operations for the third quarter of 2021 amounted to $0.84 million, representing a reduction of loss from $1.08 million last quarter.

•

The net asset value was around $4.67 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

 

GIGAMEDIA3Q21 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

 

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

 

3Q21

 

 

2Q21

 

 

Change

(%)

 

 

3Q21

 

 

 

 

3Q20

 

 

Change

(%)

 

Revenues

 

 

1,564

 

 

 

1,225

 

 

 

27.7

%

 

 

1,564

 

 

 

 

 

2,028

 

 

 

-22.9

%

Gross Profit

 

 

877

 

 

 

633

 

 

 

38.6

%

 

 

877

 

 

 

 

 

1,196

 

 

 

-26.7

%

Loss from Operations

 

 

(842

)

 

 

(1,079

)

 

NM

 

 

 

(842

)

 

 

 

 

(357

)

 

NM

 

Net Loss Attributable to GigaMedia

 

 

(728

)

 

 

(836

)

 

NM

 

 

 

(728

)

 

 

 

 

(248

)

 

NM

 

Loss Per Share Attributable to GigaMedia, Diluted

 

 

(0.07

)

 

 

(0.08

)

 

NM

 

 

 

(0.07

)

 

 

 

 

(0.02

)

 

NM

 

EBITDA (A)

 

 

(791

)

 

 

(911

)

 

NM

 

 

 

(791

)

 

 

 

 

(317

)

 

NM

 

Cash, Cash Equivalents and Restricted Cash

 

 

43,152

 

 

 

43,650

 

 

 

-1.1

%

 

 

43,152

 

 

 

 

 

46,869

 

 

 

-7.9

%

 

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 2021 were $1.56 million, representing an increase of 27.7% compared to $1.23 million in the prior quarter, but decreased by 22.9% year-over-year from $2.03 million the same quarter last year.

•

Consolidated gross profit increased by 38.6% quarter-on-quarter to $0.88 million from $0.63 million last quarter, or decreased by 26.7% year-over-year from $1.20 million in the third quarter last year.

•

Consolidated loss from operation of the third quarter of 2021 was $0.84 million, representing a decrease in loss by approximately $0.24 million from last quarter.

•

Consolidated net loss of the third quarter of 2021 was $0.73 million compared to $0.84 million in last quarter.

•

Cash, cash equivalents and restricted cash at the end of the third quarter of 2021 was $43.2 million, decreasing by 1.1% from $43.7 million last quarter.

 

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $43.2 million as of September 30, 2021, or $3.90 per share.

 

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of October 28, 2021. 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 2020 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 productivities of the existing games, executing effective marketing, and pursuing a steady expansion of customer base.

 

 

"Meanwhile, we are also exploring possibilities of expanding our business through strategic investments to maximize shareholders' value," stated CEO James Huang.

 

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 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

 

 

Nine months ended

 

 

 

9/30/2021

 

 

6/30/2021

 

 

9/30/2020

 

 

9/30/2021

 

 

9/30/2020

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital entertainment service revenues

 

 

1,564,208

 

 

 

1,224,749

 

 

 

2,028,138

 

 

 

4,235,233

 

 

 

5,457,589

 

Other revenues

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

1,564,208

 

 

 

1,224,749

 

 

 

2,028,138

 

 

 

4,235,233

 

 

 

5,457,589

 

Operating costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of digital entertainment service revenues

 

 

687,198

 

 

 

591,687

 

 

 

831,732

 

 

 

1,934,642

 

 

 

2,356,831

 

Cost of other revenues

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

687,198

 

 

 

591,687

 

 

 

831,732

 

 

 

1,934,642

 

 

 

2,356,831

 

Gross profit

 

 

877,010

 

 

 

633,062

 

 

 

1,196,406

 

 

 

2,300,591

 

 

 

3,100,758

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product development and engineering expenses

 

 

365,732

 

 

 

373,057

 

 

 

341,023

 

 

 

1,084,686

 

 

 

1,002,584

 

Selling and marketing expenses

 

 

459,519

 

 

 

376,914

 

 

 

374,462

 

 

 

1,233,467

 

 

 

1,152,466

 

General and administrative expenses

 

 

893,651

 

 

 

960,474

 

 

 

836,107

 

 

 

2,800,317

 

 

 

2,486,547

 

Other

 

 

33

 

 

 

2,103

 

 

 

2,157

 

 

 

4,735

 

 

 

5,099

 

 

 

 

1,718,935

 

 

 

1,712,548

 

 

 

1,553,749

 

 

 

5,123,205

 

 

 

4,646,696

 

Loss from operations

 

 

(841,925

)

 

 

(1,079,486

)

 

 

(357,343

)

 

 

(2,822,614

)

 

 

(1,545,938

)

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

68,084

 

 

 

80,184

 

 

 

71,014

 

 

 

226,863

 

 

 

539,613

 

Foreign exchange (loss) gain - net

 

 

(32,305

)

 

 

163,139

 

 

 

39,214

 

 

 

81,477

 

 

 

55,744

 

Gain on disposal of investments

 

 

79,411

 

 

 

—

 

 

 

—

 

 

 

79,411

 

 

 

—

 

Other - net

 

 

(1,292

)

 

 

176

 

 

 

(1,132

)

 

 

(3,925

)

 

 

(2,834

)

 

 

 

113,898

 

 

 

243,499

 

 

 

109,096

 

 

 

383,826

 

 

 

592,523

 

Loss from continuing operations before income taxes

 

 

(728,027

)

 

 

(835,987

)

 

 

(248,247

)

 

 

(2,438,788

)

 

 

(953,415

)

Income tax benefit (expense)

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Net loss attributable to shareholders of GigaMedia

 

 

(728,027

)

 

 

(835,987

)

 

 

(248,247

)

 

 

(2,438,788

)

 

 

(953,415

)

Loss per share attributable to GigaMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

(0.07

)

 

 

(0.08

)

 

 

(0.02

)

 

 

(0.22

)

 

 

(0.09

)

Diluted:

 

 

(0.07

)

 

 

(0.08

)

 

 

(0.02

)

 

 

(0.22

)

 

 

(0.09

)

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

 

 

 

9/30/2021

 

 

6/30/2021

 

 

9/30/2020

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

42,851,769

 

 

 

43,350,182

 

 

 

46,333,621

 

Accounts receivable - net

 

 

300,895

 

 

 

282,780

 

 

 

322,000

 

Prepaid expenses

 

 

436,201

 

 

 

242,488

 

 

 

155,357

 

Restricted cash

 

 

300,000

 

 

 

300,000

 

 

 

535,605

 

Other receivables

 

 

15,463

 

 

 

52,422

 

 

 

36,450

 

Other current assets

 

 

158,342

 

 

 

154,622

 

 

 

165,411

 

Total current assets

 

 

44,062,670

 

 

 

44,382,494

 

 

 

47,548,444

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities - noncurrent

 

 

10,000,000

 

 

 

10,000,000

 

 

 

10,000,000

 

Property, plant & equipment - net

 

 

45,427

 

 

 

48,349

 

 

 

22,580

 

Intangible assets - net

 

 

7,376

 

 

 

9,625

 

 

 

16,186

 

Prepaid licensing and royalty fees

 

 

57,030

 

 

 

73,762

 

 

 

142,860

 

Other assets

 

 

2,518,871

 

 

 

2,586,685

 

 

 

312,013

 

Total assets

 

 

56,691,374

 

 

 

57,100,915

 

 

 

58,042,083

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

40,154

 

 

 

44,870

 

 

 

74,138

 

Accrued compensation

 

 

395,323

 

 

 

279,896

 

 

 

403,753

 

Accrued expenses

 

 

1,396,646

 

 

 

1,138,777

 

 

 

1,397,399

 

Unearned revenue

 

 

912,399

 

 

 

930,026

 

 

 

1,041,862

 

Other current liabilities

 

 

842,110

 

 

 

787,009

 

 

 

545,974

 

Total current liabilities

 

 

3,586,632

 

 

 

3,180,578

 

 

 

3,463,126

 

Other liabilities

 

 

1,518,425

 

 

 

1,636,271

 

 

 

3,379

 

Total liabilities

 

 

5,105,057

 

 

 

4,816,849

 

 

 

3,466,505

 

Total equity

 

 

51,586,317

 

 

 

52,284,066

 

 

 

54,575,578

 

Total liabilities and equity

 

 

56,691,374

 

 

 

57,100,915

 

 

 

58,042,083

 

 

GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

 

 

 

Three months ended

 

 

Nine months ended

 

 

 

9/30/2021

 

 

6/30/2021

 

 

9/30/2020

 

 

9/30/2021

 

 

9/30/2020

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Reconciliation of Net Loss to EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to GigaMedia

 

 

(728,027

)

 

 

(835,987

)

 

 

(248,247

)

 

 

(2,438,788

)

 

 

(953,415

)

Depreciation

 

 

2,936

 

 

 

2,920

 

 

 

752

 

 

 

7,759

 

 

 

1,641

 

Amortization

 

 

2,252

 

 

 

2,242

 

 

 

1,224

 

 

 

6,503

 

 

 

3,624

 

Interest income

 

 

(68,084

)

 

 

(80,184

)

 

 

(71,014

)

 

 

(226,863

)

 

 

(539,613

)

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

Income tax (benefit) expense

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

EBITDA

 

 

(790,923

)

 

 

(911,009

)

 

 

(317,285

)

 

 

(2,651,389

)

 

 

(1,487,763

)