omniture

GigaMedia Announces Second-Quarter 2020 Financial Results

2020-07-31 09:39 19229

TAIPEI, July 31, 2020 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2020 unaudited financial results.

Comments from Management

In the second quarter of 2020, GigaMedia reported revenues of $1.83 million, with a gross profit $0.98 million, an operating loss of $0.55 million and the net loss of $0.42 million. Total revenues increased by 13.8% if compared to the previous quarter.

"In spite of the ongoing disruption of the pandemic to our operations, we have achieved clear improvements," said GigaMedia CEO James Huang. "We have reshaped our cost structure and remodeled our marketing strategies, thereby approximately halved the operating loss if comparing to the same quarter last year."

"And we are also enhancing the playability and stickiness of FunTown M, our in-house developed mobile platform of casual games," continued GigaMedia CEO James Huang, "which will be the most crucial piece to fall in place for our turning profitable beyond just break-even."

Second Quarter Overview

  • Operating revenues increased by approximately 13.8% quarter-on-quarter, to $1.83 million from $1.60 million in last quarter, and 4.3% year-over-year from $1.75 million the same period last year. The increase was mainly attributable to our efforts in revitalizing Tales Runner, a 14-year-old licensed game we operate in Hong Kong.
  • Gross profit increased slightly by 5.5% to $0.98 million from $0.93 million in last quarter, and increased by 27.2% compared to $0.77 million in the same period last year.
  • The net asset value was $4.96 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 2Q20 UNAUDITED CONSOLIDATED FINANCIAL RESULTS


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


2Q20


1Q20


Change

(%)



2Q20


2Q19


Change

(%)


Revenues



1,826



1,604



13.8

%



1,826



1,750



4.3

%

Gross Profit



978



927



5.5

%



978



769



27.2

%

Loss from Operations



(549)



(640)


NM




(549)



(1,122)


NM


Net Loss Attributable to GigaMedia



(419)



(286)


NM




(419)



(614)


NM


Net Loss Per Share Attributable to

   GigaMedia, Diluted



(0.04)



(0.03)


NM




(0.04)



(0.06)


NM


EBITDA (A)



(634)



(536)


NM




(634)



(1,000)


NM


Cash, Cash Equivalents and

   Restricted Cash



56,783



57,311



(0.9)

%



56,783



58,015



(2.1)

%

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 2020 increased by 13.8% quarter-on-quarter to $1.83 million from $1.60 million in last quarter, and by 4.3% year-over-year from $1.75 million the same period last year.
  • Consolidated gross profit was $0.98 million, increased by 5.5% quarter-on-quarter and 27.2% year-over-year.
  • Consolidated operating expenses were $1.53 million, comparable to the first quarter of 2020 and decreased by 19.3% if compared to the same period last year, which reflected a decrease in marketing expenses and general expenses.
  • Consolidated loss from operation of the second quarter of 2020 was a loss of $0.55 million, reflecting an improvement from a loss of $0.64 million in the first quarter.
  • Net loss in the second quarter of 2020 was $0.42 million, increasing from a net loss of $0.29 million in the first quarter this year mainly due to lower interest income and exchange loss in this quarter. 
  • Cash, cash equivalents and restricted cash at the end of the second quarter of 2020 amounted to $56.8 million, slightly decreased by 0.9% from $57.3 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 $56.8 million, or $5.14 per share, as of June 30, 2020.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of July 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 the second half of 2020, we will continue improving productivities of the existing games, in which FunTown M, our own mobile platform of casual games, is expected to begin contributing to our revenues. Along with our various product lines and customer platform, we will gradually accumulate the momentum to an upward trend.  

Meanwhile, our management continues evaluating and pursuing prospects of strategic investment targets that 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 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 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 2020 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



06/30/2020


03/31/2020


06/30/2019


06/30/2020


06/30/2019



unaudited


unaudited


unaudited


unaudited


unaudited



USD


USD


USD


USD


USD

Operating revenues
















Digital entertainment service revenues



1,825,547



1,603,904



1,749,583



3,429,450



3,232,816

Other revenues














1,825,547



1,603,904



1,749,583



3,429,450



3,232,816

Operating costs
















Cost of digital entertainment service

    revenues



847,906



677,194



980,448



1,525,099



1,725,350

Cost of other revenues














847,906



677,194



980,448



1,525,099



1,725,350

Gross profit



977,641



926,710



769,135



1,904,351



1,507,466

Operating expenses
















Product development and engineering

   expenses



332,745



328,815



325,144



661,560



645,638

Selling and marketing expenses



367,529



410,475



580,539



778,004



1,106,542

General and administrative expenses



825,998



824,442



974,648



1,650,440



1,810,634

Other



(42)



2,984



11,165



2,942



16,380




1,526,230



1,566,716



1,891,496



3,092,946



3,579,194

Loss from operations



(548,589)



(640,006)



(1,122,361)



(1,188,595)



(2,071,728)

Non-operating income (expense)
















Interest income



212,881



255,719



414,450



468,600



796,250

Foreign exchange (loss) gain - net



(82,357)



98,887



90,922



16,529



79,520

Other - net



(1,404)



(298)



3,416



(1,702)



50,328




129,120



354,308



508,788



483,427



926,098

Loss before income taxes



(419,469)



(285,698)



(613,573)



(705,168)



(1,145,630)

Income tax benefit (expense)











Net loss attributable to shareholders of
GigaMedia



(419,469)



(285,698)



(613,573)



(705,168)



(1,145,630)

Loss per share attributable to GigaMedia
















   Basic



(0.04)



(0.03)



(0.06)



(0.06)



(0.10)

   Diluted



(0.04)



(0.03)



(0.06)



(0.06)



(0.10)

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




06/30/2020


03/31/2020


06/30/2019



unaudited


unaudited


unaudited



USD


USD


USD

Assets










Current assets










Cash and cash equivalents



56,247,678



56,777,472



57,489,563

Accounts receivable - net



349,450



355,225



591,905

Prepaid expenses



228,794



276,010



275,551

Restricted cash



535,153



533,436



525,354

Other receivables



203,671



238,396



458,383

Other current assets



142,230



148,757



131,150

Total current assets



57,706,976



58,329,296



59,471,906











Property, plant & equipment - net



7,740



8,117



92,580

Intangible assets - net



17,111



17,965



23,545

Prepaid licensing and royalty fees



184,365



210,530



574,274

Other assets



290,687



285,319



1,035,529

Total assets



58,206,879



58,851,227



61,197,834











Liabilities and equity










Accounts payable



69,147



60,405



119,597

Accrued compensation



278,622



156,948



253,262

Accrued expenses



1,321,262



1,449,553



1,340,539

Unearned revenue



1,058,940



1,285,399



1,617,881

Other current liabilities



627,162



715,877



197,776

Total current liabilities



3,355,133



3,668,182



3,529,055

Other liabilities



3,653



7,337



781,187

Total liabilities



3,358,786



3,675,519



4,310,242

GigaMedia's shareholders' equity



54,848,093



55,175,708



56,887,592

Total liabilities and equity



58,206,879



58,851,227



61,197,834


GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS








Three months ended


Six months ended



06/30/2020


03/31/2020


06/30/2019


06/30/2020


06/30/2019



unaudited


unaudited


unaudited


unaudited


unaudited



USD


USD


USD


USD


USD

Reconciliation of Net Loss to EBITDA
















Net loss attributable to GigaMedia



(419,469)



(285,698)



(613,573)



(705,168)



(1,145,630)

Depreciation



535



354



14,769



889



40,156

Amortization



(2,257)



4,657



12,830



2,400



25,729

Interest income



(212,881)



(255,719)



(414,450)



(468,600)



(796,250)

Interest expense











Income tax (benefit) expense











EBITDA



(634,072)



(536,406)



(1,000,424)



(1,170,479)



(1,875,995)

 

 

Cision View original content:http://www.prnewswire.com/news-releases/gigamedia-announces-second-quarter-2020-financial-results-301103636.html

Source: GigaMedia Limited
Related Stocks:
NASDAQ:GIGM
collection