TAIPEI, April 7, 2020 /PRNewswire/ -- GigaMedia Limited
(NASDAQ: GIGM) today announced its unaudited financial results for
the fourth quarter and full year of 2019.
Highlights for Year Ended December 31,
2019
For 2019, GigaMedia reported revenues of $6.6 million, with a gross profit of $3.6 million, an operating loss of $2.9 million and the net loss of $1.5 million.
"In spite of the mild decrease in revenues," said GigaMedia CEO
James Huang, "in 2019 we continued
improving our cost structure through strategic cost management, and
applied effective KPIs to drive performance of departments across
our Company."
Compared to the prior year, the 2019 results exhibited overall
improvements. Our gross margin rate has risen by 4.4% to 53.9% from
49.5% in 2018, and consequently the gross profit was even slightly
higher than $3.5 million in the prior
year, in spite of the decrease in revenues. The loss from
operations was also cut by 40.1% from $4.8
million in 2018, and the net loss approximately halved.
"In the past year of 2019, we kept emphasizing on developing our
in-house offerings," continued GigaMedia CEO James Huang, "and in the fourth quarter, our new
mobile platform of casual games passed the closed and open beta
testing tracks. It is now in trial operations, through which we are
establishing marketing rhythm, expanding product lines, and
strengthening customer's loyalty."
As for the current coronavirus (COVID-19) pandemic, CEO
James Huang said, "While the virus
ravages many countries in the world, our operations in Taiwan and Hong
Kong have so far not been affected severely. Nonetheless, we
have implemented strict hygiene and social distancing practices in
our daily operations in order to protect the safety and health of
our employees. We have also drawn up a contingency plan to ensure
our business continuity against the escalating coronavirus
situation."
Fourth Quarter and Full Year Overview
- Consolidated 4Q revenues decreased 21.2% quarter-on-quarter,
mainly due to seasonality. The year-over-year comparison was a
decrease of 7.1%, mainly in licensed games, partly offset by
increase in in-house casual games. Full year revenues decreased
6.4% to $6.6 million from
$7.1 million in 2018.
- Loss from operations for 4Q was $0.3
million, representing a loss reduction from $0.5 million in 3Q, mainly due to a decrease in
general and administrative expenses. Full year operating loss was
$2.9 million, representing a loss
reduction of $1.9 million from
approximately $4.8 million for
2018.
- The net asset value was approximately $5.04 per share as of the end of 2019.
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital
entertainment services. GigaMedia's digital entertainment service
business FunTown develops and operates a suite of digital
entertainments in Taiwan and
Hong Kong, with focus on mobile
games and casual games.
Unaudited consolidated results of GigaMedia are summarized in
the table below.
For the Full Year 2019
GIGAMEDIA FY19
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
(unaudited, all
figures in US$ thousands, except per share amounts)
|
|
FY19
|
|
FY18
|
|
Change
(%)
|
|
Revenues
|
|
|
6,645
|
|
|
7,101
|
|
-6.4
|
%
|
Gross
Profit
|
|
|
3,581
|
|
|
3,516
|
|
1.8
|
%
|
Loss from
Operations
|
|
|
(2,891)
|
|
|
(4,823)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(1,535)
|
|
|
(3,193)
|
|
NM
|
|
Net Loss Per Share
Attributable to GigaMedia, Diluted
|
|
|
(0.14)
|
|
|
(0.29)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(2,896)
|
|
|
(4,360)
|
|
NM
|
|
Cash, Restricted
Cash and Cash Equivalents
|
|
|
58,274
|
|
|
59,826
|
|
-2.6
|
%
|
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 year ended December 31, 2019 was $6.6
million, decreased from $7.1
million in the prior year. The decrease was mainly due to a
decline in our licensed mobile games.
- Consolidated loss from operations for 2019 was
$2.9 million, compared to a loss of
$4.8 million in the last year. The
decrease of loss was due to improved cost-effectiveness across the
Company.
- Consolidated net loss for 2019 was $1.5 million, compared to a net loss of
$3.2 million in the prior year. Loss
per share for 2019 was $0.14 per
share, compared to a loss of $0.29
per share for the prior year.
For the Fourth Quarter
GIGAMEDIA 4Q19
UNAUDITED CONSOLIDATED FINANCIAL RESULTS
|
|
(unaudited, all
figures in US$ thousands, except
per share amounts)
|
|
4Q19
|
|
3Q19
|
|
Change
(%)
|
|
|
4Q19
|
|
4Q18
|
|
Change
(%)
|
|
Revenues
|
|
|
1,504
|
|
|
1,908
|
|
|
-21.17
|
%
|
|
|
1,504
|
|
|
1,619
|
|
|
-7.10
|
%
|
Gross
Profit
|
|
|
1,025
|
|
|
1,049
|
|
|
-2.29
|
%
|
|
|
1,025
|
|
|
880
|
|
|
16.48
|
%
|
Loss from
Operations
|
|
|
(276)
|
|
|
(544)
|
|
NM
|
|
|
|
(276)
|
|
|
(1,021)
|
|
NM
|
|
Net Loss
Attributable to GigaMedia
|
|
|
(148)
|
|
|
(242)
|
|
NM
|
|
|
|
(148)
|
|
|
(503)
|
|
NM
|
|
Net Loss Per Share
Attributable to
GigaMedia, Diluted
|
|
|
(0.01)
|
|
|
(0.02)
|
|
NM
|
|
|
|
(0.01)
|
|
|
(0.05)
|
|
NM
|
|
EBITDA
(A)
|
|
|
(435)
|
|
|
(585)
|
|
NM
|
|
|
|
(435)
|
|
|
(806)
|
|
NM
|
|
Cash, Restricted
Cash and Cash
Equivalents
|
|
|
58,274
|
|
|
58,164
|
|
|
0.19
|
%
|
|
|
58,274
|
|
|
59,826
|
|
|
-2.59
|
%
|
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.)
|
Fourth-Quarter Financial Results
- Consolidated revenues for the fourth quarter of 2019
decreased by 21.2% quarter-on-quarter from $1.9 million to $1.5
million mainly due to seasonality, and decreased by 7.1%
year-over-year mainly as revenues from certain licensed games
dwindled.
- Consolidated loss from operations of the fourth quarter of
2019 was $0.3 million, compared to a
loss of $0.5 million in the last
quarter.
- Consolidated net loss of the fourth quarter of 2019 was
$0.1 million, slightly improved from
a net loss of $0.2 million in the
last quarter.
- Cash, restricted cash and cash equivalents at the end of
the fourth quarter of 2019 amounted to $58.3
million, which slightly increased from $58.2 million at the end of the prior
quarter.
- Consolidated EBITDA for the fourth quarter of 2019 was a
loss of $0.4 million compared to a
loss of $0.6 million in the third
quarter of 2019.
Financial Position
GigaMedia maintained its solid financial position. Cash,
restricted cash and cash equivalents amounted to $58.3 million, or approximately $5.27 per share, along with zero bank loan and
$55.7 million of shareholders'
equity, as of December 31, 2019.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of
April 7, 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 2018 Annual Report on
Form 20-F filed with the U.S.
Securities and Exchange Commission as referenced
below, actual results may differ materially.
"It is very difficult to foretell anything in current global
economic turmoil, even for our digital entertainment business,
which is comparatively less affected," said GigaMedia CEO
James Huang, "but reassuringly, we
have kept abundant financial resources to weather the storm, and we
will continue to boost productivities by improving existing
products and services, introducing own offerings, along with
adopting strategies of promoting customer relationships."
In the meantime, the global economic downturn may exhibit good
M&A chances for us, as potential targets may be available at
bargain prices. Therefore, we will continue, very cautiously,
seeking suitable strategic investment and acquisition targets for
increasing corporate growth and maximizing shareholder value.
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
Unaudited results
All quarterly and certain annual 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 fourth quarter and full year 2019
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 digital
entertainment products or services that are appealing to users, our
ability to retain existing users and attract new users, and our
ability to launch digital entertainment products and services 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 2019 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
|
|
|
|
12/31/2019
|
|
|
09/30/2019
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
12/31/2018
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Operating
revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Digital entertainment
service revenues
|
|
|
1,503,848
|
|
|
|
1,908,261
|
|
|
|
1,618,931
|
|
|
|
6,644,924
|
|
|
|
7,100,636
|
|
Operating
costs
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of digital
entertainment service
revenues
|
|
|
479,341
|
|
|
|
859,511
|
|
|
|
739,324
|
|
|
|
3,064,201
|
|
|
|
3,584,875
|
|
Gross
profit
|
|
|
1,024,507
|
|
|
|
1,048,750
|
|
|
|
879,607
|
|
|
|
3,580,723
|
|
|
|
3,515,761
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product development
and engineering
expenses
|
|
|
213,241
|
|
|
|
326,419
|
|
|
|
215,625
|
|
|
|
1,185,299
|
|
|
|
1,091,445
|
|
Selling and marketing
expenses
|
|
|
427,090
|
|
|
|
461,653
|
|
|
|
576,256
|
|
|
|
1,995,285
|
|
|
|
3,296,636
|
|
General and
administrative expenses
|
|
|
571,563
|
|
|
|
800,015
|
|
|
|
860,903
|
|
|
|
3,182,212
|
|
|
|
3,684,054
|
|
Impairment
losses
|
|
|
85,199
|
|
|
|
—
|
|
|
|
243,966
|
|
|
|
85,199
|
|
|
|
243,966
|
|
Other
|
|
|
2,957
|
|
|
|
4,723
|
|
|
|
3,946
|
|
|
|
24,060
|
|
|
|
22,510
|
|
|
|
|
1,300,050
|
|
|
|
1,592,810
|
|
|
|
1,900,696
|
|
|
|
6,472,055
|
|
|
|
8,338,611
|
|
Loss from
operations
|
|
|
(275,543)
|
|
|
|
(544,060)
|
|
|
|
(1,021,089)
|
|
|
|
(2,891,332)
|
|
|
|
(4,822,850)
|
|
Non-operating
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
322,587
|
|
|
|
364,539
|
|
|
|
333,338
|
|
|
|
1,483,375
|
|
|
|
1,302,145
|
|
Interest
expense
|
|
|
(14,866)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(14,866)
|
|
|
|
—
|
|
Foreign exchange
(loss) gain - net
|
|
|
(84,774)
|
|
|
|
(62,487)
|
|
|
|
129,052
|
|
|
|
(67,741)
|
|
|
|
266,255
|
|
Gain on disposal of
property, plant
and equipment
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
31
|
|
Other -
net
|
|
|
(95,154)
|
|
|
|
119
|
|
|
|
56,162
|
|
|
|
(44,705)
|
|
|
|
61,358
|
|
|
|
|
127,793
|
|
|
|
302,171
|
|
|
|
518,552
|
|
|
|
1,356,063
|
|
|
|
1,629,789
|
|
Loss before income
taxes
|
|
|
(147,750)
|
|
|
|
(241,889)
|
|
|
|
(502,537)
|
|
|
|
(1,535,269)
|
|
|
|
(3,193,061)
|
|
Income tax benefit
(expense)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Net loss attributable
to shareholders of
GigaMedia
|
|
|
(147,750)
|
|
|
|
(241,889)
|
|
|
|
(502,537)
|
|
|
|
(1,535,269)
|
|
|
|
(3,193,061)
|
|
Loss per share
attributable to
GigaMedia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
|
|
(0.01)
|
|
|
|
(0.02)
|
|
|
|
(0.05)
|
|
|
|
(0.14)
|
|
|
|
(0.29)
|
|
Diluted:
|
|
|
(0.01)
|
|
|
|
(0.02)
|
|
|
|
(0.05)
|
|
|
|
(0.14)
|
|
|
|
(0.29)
|
|
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
|
|
|
|
12/31/2019
|
|
|
09/30/2019
|
|
|
12/31/2018
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
audited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
57,742,696
|
|
|
|
57,635,576
|
|
|
|
59,307,829
|
|
Accounts receivable -
net
|
|
|
368,445
|
|
|
|
591,302
|
|
|
|
523,004
|
|
Prepaid
expenses
|
|
|
112,243
|
|
|
|
142,819
|
|
|
|
122,434
|
|
Restricted
cash
|
|
|
530,984
|
|
|
|
528,387
|
|
|
|
517,815
|
|
Other
receivables
|
|
|
261
|
|
|
|
457,168
|
|
|
|
2,998
|
|
Other current
assets
|
|
|
138,601
|
|
|
|
165,295
|
|
|
|
120,802
|
|
Total current
assets
|
|
|
58,893,230
|
|
|
|
59,520,547
|
|
|
|
60,594,882
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant &
equipment - net
|
|
|
111,770
|
|
|
|
101,998
|
|
|
|
121,585
|
|
Intangible assets -
net
|
|
|
15,551
|
|
|
|
78,828
|
|
|
|
37,726
|
|
Prepaid licensing and
royalty fees
|
|
|
43,915
|
|
|
|
468,722
|
|
|
|
435,156
|
|
Other
assets
|
|
|
285,072
|
|
|
|
918,556
|
|
|
|
255,604
|
|
Total
assets
|
|
|
59,349,538
|
|
|
|
61,088,651
|
|
|
|
61,444,953
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
equity
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
|
64,337
|
|
|
|
140,676
|
|
|
|
104,030
|
|
Accrued
compensation
|
|
|
200,455
|
|
|
|
371,212
|
|
|
|
170,470
|
|
Accrued
expenses
|
|
|
1,178,363
|
|
|
|
1,470,179
|
|
|
|
1,262,707
|
|
Unearned
revenue
|
|
|
1,364,749
|
|
|
|
1,504,176
|
|
|
|
1,369,769
|
|
Other current
liabilities
|
|
|
775,305
|
|
|
|
241,789
|
|
|
|
366,167
|
|
Total current
liabilities
|
|
|
3,583,209
|
|
|
|
3,728,032
|
|
|
|
3,273,143
|
|
Other
liabilities
|
|
|
94,385
|
|
|
|
662,530
|
|
|
|
—
|
|
Total
liabilities
|
|
|
3,677,594
|
|
|
|
4,390,562
|
|
|
|
3,273,143
|
|
GigaMedia's
shareholders' equity
|
|
|
55,671,944
|
|
|
|
56,698,089
|
|
|
|
58,171,810
|
|
Total liabilities and
equity
|
|
|
59,349,538
|
|
|
|
61,088,651
|
|
|
|
61,444,953
|
|
GIGAMEDIA
LIMITED
|
RECONCILIATIONS OF
NON-GAAP RESULTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
|
Twelve months
ended
|
|
|
|
12/31/2019
|
|
|
9/30/2019
|
|
|
12/31/2018
|
|
|
12/31/2019
|
|
|
12/31/2018
|
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
unaudited
|
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
|
USD
|
|
Reconciliation of
Net Income (Loss) to
EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to GigaMedia
|
|
|
(147,750)
|
|
|
|
(241,889)
|
|
|
|
(502,537)
|
|
|
|
(1,535,269)
|
|
|
|
(3,193,061)
|
|
Depreciation
|
|
|
10,888
|
|
|
|
9,919
|
|
|
|
25,301
|
|
|
|
60,964
|
|
|
|
99,635
|
|
Amortization
|
|
|
9,669
|
|
|
|
11,126
|
|
|
|
4,137
|
|
|
|
46,523
|
|
|
|
36,013
|
|
Interest
income
|
|
|
(322,587)
|
|
|
|
(364,539)
|
|
|
|
(333,338)
|
|
|
|
(1,483,375)
|
|
|
|
(1,302,145)
|
|
Interest
expense
|
|
|
14,866
|
|
|
|
—
|
|
|
|
—
|
|
|
|
14,866
|
|
|
|
—
|
|
Income tax (benefit)
expense
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
EBITDA
|
|
|
(434,914)
|
|
|
|
(585,383)
|
|
|
|
(806,437)
|
|
|
|
(2,896,291)
|
|
|
|
(4,359,558)
|
|
View original
content:http://www.prnewswire.com/news-releases/gigamedia-announces-fourth-quarter-and-full-year-2019-financial-results-301036584.html
SOURCE GigaMedia Limited