TAIPEI, March 24, 2016 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its fourth-quarter and full-year 2015 unaudited financial results.
Message from Management
Fourth quarter was crucial for our company as we completed the restructuring of the organization. Both the management and the board agreed to remain the Company in good financial health. Therefore, in 2015, the Company endeavored to clean up the underperforming business and investment assets, and streamline the mobile game business.
In the fourth quarter, the operating revenues generated from the online and mobile game business were $2.2 million, and its gross profit was $1.1 million and gross margin accounted for about 50%, of which improved adequately compared with 28% of gross margin in 1Q15.
In 2015, the annual operating revenues were $10.3 million, up by 4.8% from $9.8 million of 2014. However, the Company recognized $4.3 million of impairment losses in 2015 mainly for prepaid license and royalty fees of ArcheAge as a result of an evaluation of its possible profitability upon release. The short-term borrowings decreased from $18.6 million in 2014 to $6.1 million in 2015; besides, given the market volatility, the Company disposed most of its marketable securities and realized a capital gain at the amount of approximately $20 million.
At the end of September last year, the Company launched a new mobile game namely "Yume100" licensed from Japan. With this game, the Company started to find a niche market, targeting female players in the age range of 20 to 40. Up to now, it's been six months upon its release in Taiwan and its revenue generation continues to be consistent. As of the end of 2015, the sales revenues generated by Yume100 were about $1 million. Due to the success of Yume100 launch in Taiwan, more and more well-known developers get to approach us for cooperation.
Looking forward to 2016, the Company plans to penetrate the female niche market and meanwhile, expects for collaboration with more renowned game developers aiming at publishing more popular games with good quality and good monetization. Besides, while the Company continues to look for investment opportunities, the management still remains conservative views on the global economic outlook, and carefully evaluates the investment potential.
Consolidated Financial Results
GigaMedia Limited is a diversified provider of online games and cloud computing services. GigaMedia's online game business, FunTown, develops and operates a suite of games in Taiwan and Hong Kong, with focus on browser/mobile games and social casino games. GigaMedia's cloud computing business, GigaCloud, was launched in early April 2013 and is focused on providing small and medium-sized enterprises in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Fourth Quarter
GIGAMEDIA 4Q15 UNAUDITED CONSOLIDATED FINANCIAL RESULTS |
||||||
(unaudited, all |
4Q15 |
3Q15 |
Change (%) |
4Q15 |
4Q14 |
Change (%) |
Revenues |
2,356 |
2,006 |
17.4% |
2,356 |
2,660 |
-11.4% |
Gross Profit |
1,005 |
-598 |
268.1% |
1,005 |
-94 |
1169.1% |
Loss from Operations |
-5,478 |
-5,240 |
-4.5% |
-5,478 |
-4,330 |
-26.5% |
Net Income |
-8,903 |
-301 |
-2857.8% |
-8,903 |
5,437 |
-263.8% |
Net Income |
-0.81 |
-0.03 |
-2600.0% |
-0.81 |
0.49 |
-265.3% |
EBITDA (A) |
-8,815 |
-207 |
-4258.5% |
-8,815 |
5,675 |
-255.3% |
Cash and |
71,436 |
74,824 |
-4.5% |
71,436 |
79,980 |
-10.7% |
(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
Financial Position
GigaMedia maintained its solid financial position with cash and cash equivalents, marketable securities-current and restricted cash accounted for $72.4 million as of December 31, 2015, or approximately $6.55 per share. In consideration of short-term borrowings, its net cash was estimated at $66.3 million as of December 31, 2015, or approximately $5.91 per share.
For the Full Year 2015
(all figures in US$ |
FY15 (unaudited) |
FY14 (audited) |
Change (%) |
Revenues |
10,251 |
9,779 |
4.8% |
Gross Profit |
1,362 |
1,944 |
-29.9% |
Loss from Operations |
-17,935 |
-13,473 |
-33.1% |
Net Loss Attributable |
-2,588 |
-5,155 |
49.8% |
Net Loss Per Share |
-0.23 |
-0.48 |
52.1% |
EBITDA (A) |
-2,223 |
-4,168 |
46.7% |
Consolidated revenues increased to $10.3 million in 2015 from $9.8 million in 2014, up by 4.8% mainly due to the growth of overall business.
Consolidated gross profit decreased to $1.4 million in 2015 from $1.9 million in 2014 (-29.9% year-over-year) attributable to an increase in operating costs and lowered operating leverage. The gross margin dropped to 13.3% in 2015, down from 19.9% in 2014.
Consolidated loss from operations for 2015 was $17.9 million, up from $13.5 million in 2014 as a result of the impairment losses for ArcheAge and the expenses accrued for the restructuring of the Company's underperforming business units in 4Q15.
Consolidated net loss attributable to the shareholders of the Company amounts to $2.6 million in 2015 compared to a loss of $5.2 million in 2014.
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
Full-year and quarterly results
All 2015 quarterly and full-year figures and all 2014 quarterly results referred to in the text, tables and attachments to this release are unaudited; all full-year 2014 amounts are audited. 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.
Webcast
Management will not hold an investor conference call and webcast for a discussion about the financial results of the fourth quarter and full year 2015 as the release dates of the financial results of the first quarter 2016 and the 2015 annual report are close. However, investors may still send the questions via email to IR@gigamedia.com.tw, and the responses will be replied individually.
An announcement for the next webcast will be made along with the release of the financial results of the first quarter of 2016.
About GigaMedia
Headquartered in Taipei, Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is a diversified provider of online games and cloud computing services. GigaMedia's online games business develops and operates a suite of games in Taiwan and Hong Kong, with focus on browser/mobile games and social casino games. The company's cloud computing business is focused on providing SMEs in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness. 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 2015 and its other filings with the United States Securities and Exchange Commission.
(Tables to follow)
GIGAMEDIA LIMITED |
|||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||
Three months ended |
Twelve months ended |
||||||||||||
12/31/2015 |
9/30/2015 |
12/31/2014 |
12/31/2015 |
12/31/2014 |
|||||||||
unaudited |
unaudited |
unaudited |
unaudited |
audited |
|||||||||
USD |
USD |
USD |
USD |
USD |
|||||||||
Operating revenues |
|||||||||||||
Asian online game and service revenues |
2,151,598 |
1,660,013 |
1,739,623 |
8,544,926 |
8,199,393 |
||||||||
Other revenues |
204,215 |
345,516 |
920,732 |
1,706,069 |
1,579,551 |
||||||||
2,355,813 |
2,005,529 |
2,660,355 |
10,250,995 |
9,778,944 |
|||||||||
Operating costs |
|||||||||||||
Cost of Asian online game and service revenues |
1,043,327 |
2,230,148 |
1,833,963 |
7,017,451 |
6,010,149 |
||||||||
Cost of other revenues |
307,688 |
373,245 |
920,471 |
1,871,227 |
1,824,573 |
||||||||
1,351,015 |
2,603,393 |
2,754,434 |
8,888,678 |
7,834,722 |
|||||||||
Gross profit (loss) |
1,004,798 |
(597,864) |
(94,079) |
1,362,317 |
1,944,222 |
||||||||
Operating expenses |
|||||||||||||
Product development and engineering expenses |
190,547 |
151,621 |
220,748 |
687,961 |
892,331 |
||||||||
Selling and marketing expenses |
2,057,035 |
1,649,356 |
1,697,665 |
8,655,713 |
6,707,346 |
||||||||
General and administrative expenses |
1,152,772 |
1,997,787 |
915,407 |
5,701,793 |
6,415,549 |
||||||||
Impairment losses |
3,446,056 |
805,746 |
1,401,667 |
4,251,803 |
1,401,667 |
||||||||
Other |
(363,885) |
37,291 |
0 |
0 |
0 |
||||||||
6,482,525 |
4,641,801 |
4,235,487 |
19,297,270 |
15,416,893 |
|||||||||
Loss from operations |
(5,477,727) |
(5,239,665) |
(4,329,566) |
(17,934,953) |
(13,472,671) |
||||||||
Non-operating income (expense) |
|||||||||||||
Interest income |
62,201 |
62,153 |
146,579 |
333,207 |
682,163 |
||||||||
(Loss) gain on sales of marketable securities |
(812) |
5,844,306 |
6,011,518 |
20,020,057 |
8,620,875 |
||||||||
Interest expense |
(27,413) |
(24,142) |
(80,344) |
(181,892) |
(243,037) |
||||||||
Foreign exchange loss - net |
(17,113) |
(346,248) |
(244,306) |
(397,259) |
(556,061) |
||||||||
Equity in net (loss) earnings on equity method investments |
(52,011) |
(615,990) |
3,538,522 |
(604,947) |
(530,801) |
||||||||
Changes in the fair value of an instrument recognized at fair value |
699 |
637 |
74,213 |
(70,853) |
74,213 |
||||||||
(Loss) gain on disposal of investments |
(365) |
37,364 |
0 |
37,000 |
0 |
||||||||
Impairment loss on marketable securities and investments |
(1,289,779) |
0 |
0 |
(1,289,779) |
0 |
||||||||
Other |
(2,100,315) |
33,477 |
263,660 |
(2,557,390) |
362,055 |
||||||||
(3,424,908) |
4,991,557 |
9,709,842 |
15,288,144 |
8,409,407 |
|||||||||
(Loss) Income from continuing operations before income taxes |
(8,902,635) |
(248,108) |
5,380,276 |
(2,646,809) |
(5,063,264) |
||||||||
Income tax benefit (expense) |
429 |
(125) |
13,005 |
13,824 |
73,258 |
||||||||
(Loss) Income from continuing operations |
(8,902,206) |
(248,233) |
5,393,281 |
(2,632,985) |
(4,990,006) |
||||||||
Net (loss) income |
(8,902,206) |
(248,233) |
5,393,281 |
(2,632,985) |
(4,990,006) |
||||||||
Less: Net (income) loss attributable to noncontrolling interest |
(445) |
(53,111) |
43,639 |
45,100 |
(164,780) |
||||||||
Net (loss) income attributable to shareholders of GigaMedia |
(8,902,651) |
(301,344) |
5,436,920 |
(2,587,885) |
(5,154,786) |
||||||||
(Loss) earnings per share attributable to GigaMedia |
|||||||||||||
Basic: |
|||||||||||||
(Loss) income from continuing operations |
(0.81) |
(0.03) |
0.49 |
(0.23) |
(0.48) |
||||||||
Loss from discontinued operations |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
||||||||
(0.81) |
(0.03) |
0.49 |
(0.23) |
(0.48) |
|||||||||
Diluted: |
|||||||||||||
(Loss) income from continuing operations |
(0.81) |
(0.03) |
0.49 |
(0.23) |
(0.48) |
||||||||
Loss from discontinued operations |
0.00 |
0.00 |
0.00 |
0.00 |
0.00 |
||||||||
(0.81) |
(0.03) |
0.49 |
(0.23) |
(0.48) |
|||||||||
Weighted average shares outstanding: |
|||||||||||||
Basic |
11,052,332 |
11,052,332 |
11,052,332 |
11,052,332 |
10,785,393 |
||||||||
Diluted |
11,052,332 |
11,052,332 |
11,056,966 |
11,052,332 |
10,785,393 |
||||||||
GIGAMEDIA LIMITED |
|||||||
CONSOLIDATED BALANCE SHEETS |
|||||||
12/31/2015 |
9/30/2015 |
12/31/2014 |
|||||
unaudited |
unaudited |
audited |
|||||
USD |
USD |
USD |
|||||
Assets |
|||||||
Current assets |
|||||||
Cash and cash equivalents |
71,432,293 |
74,818,341 |
50,640,355 |
||||
Marketable securities - current |
3,830 |
5,307 |
29,339,926 |
||||
Accounts receivable - net |
1,246,371 |
982,186 |
1,297,785 |
||||
Prepaid expenses |
545,200 |
420,918 |
564,080 |
||||
Restricted cash |
1,000,000 |
1,000,000 |
8,990,666 |
||||
Other receivables |
112,993 |
74,327 |
129,126 |
||||
Other current assets |
225,086 |
258,117 |
195,998 |
||||
Total current assets |
74,565,773 |
77,559,196 |
91,157,936 |
||||
Marketable securities - noncurrent |
0 |
0 |
4,744,000 |
||||
Investments |
4,519,147 |
5,798,904 |
5,780,778 |
||||
Property, plant & equipment - net |
1,390,711 |
1,502,697 |
1,663,424 |
||||
Intangible assets - net |
87,710 |
137,532 |
221,630 |
||||
Prepaid licensing and royalty fees |
238,611 |
3,150,519 |
4,382,772 |
||||
Other assets |
388,193 |
333,006 |
353,258 |
||||
Total assets |
81,190,145 |
88,481,854 |
108,303,798 |
||||
Liabilities and equity |
|||||||
Short-term borrowings |
6,092,917 |
5,780,347 |
18,641,390 |
||||
Accounts payable |
319,601 |
280,738 |
770,965 |
||||
Accrued compensation |
759,260 |
672,966 |
795,431 |
||||
Accrued expenses |
2,978,563 |
2,233,313 |
3,464,652 |
||||
Unearned revenue |
1,750,253 |
1,591,386 |
1,945,945 |
||||
Other current liabilities |
1,701,754 |
1,632,963 |
1,718,709 |
||||
Total current liabilities |
13,602,348 |
12,191,713 |
27,337,092 |
||||
Other liabilities |
1,937,878 |
1,937,864 |
1,938,256 |
||||
Total liabilities |
15,540,226 |
14,129,577 |
29,275,348 |
||||
GigaMedia's shareholders' equity |
65,649,919 |
74,352,277 |
79,017,995 |
||||
Noncontrolling interest |
0 |
0 |
10,455 |
||||
Total equity |
65,649,919 |
74,352,277 |
79,028,450 |
||||
Total liabilities and equity |
81,190,145 |
88,481,854 |
108,303,798 |
||||
GIGAMEDIA LIMITED |
|||||||||||
Reconciliations of Non-GAAP Results of Operations |
|||||||||||
Three months ended |
Twelve months ended |
||||||||||
12/31/2015 |
9/30/2015 |
12/31/2014 |
12/31/2015 |
12/31/2014 |
|||||||
unaudited |
unaudited |
audited |
unaudited |
audited |
|||||||
USD |
USD |
USD |
USD |
USD |
|||||||
Reconciliation of Net (Loss) Income to EBITDA |
|||||||||||
Net (loss) income attributable to GigaMedia |
(8,902,651) |
(301,344) |
5,436,920 |
(2,587,885) |
(5,154,786) |
||||||
Depreciation |
66,455 |
73,079 |
76,309 |
294,042 |
305,779 |
||||||
Amortization |
56,793 |
59,838 |
241,060 |
236,076 |
1,192,629 |
||||||
Interest income |
(62,201) |
(62,153) |
(146,450) |
(333,186) |
(681,833) |
||||||
Interest expense |
27,418 |
23,934 |
80,344 |
181,429 |
243,037 |
||||||
Income tax (benefit) expense |
(429) |
125 |
(13,005) |
(13,824) |
(73,258) |
||||||
EBITDA |
(8,814,615) |
(206,521) |
5,675,178 |
(2,223,348) |
(4,168,432) |
||||||
For further information contact:
Annie Sun
Investor Relations Services
Country/City Code 8862 Tel: 2656-8096
IR@gigamedia.com.tw
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2015-financial-results-300241011.html
