EX-99.1 2 gigm-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

For further information contact:

 

 

 

 

 

Investor Relations Department

 

 

Country/City Code 8862 Tel: 2656-8000

 

 

IR@gigamedia.com.tw

 

GigaMedia Announces First-Quarter 2025 Financial Results

 

TAIPEI, Taiwan, May 5, 2025 – GigaMedia Limited (NASDAQ: GIGM) today announced its first quarter 2025 unaudited financial results.

Comments from Management

For the first quarter of 2025, GigaMedia reported revenues of $0.86 million with a gross profit of $0.46 million, an operating loss of $0.97 million and the net loss of $0.68 million.

 

If compared to the previous quarter, the revenues increased by 13.8%. In this quarter, we continued rightsizing our workforce and consolidating resources to enhance productivity.

 

For the following quarters, we plan to continue our exploration of digital entertainment to further develop and promote our own products and services.

First Quarter Overview

•
Operating revenues increased by 13.8% in quarter-on-quarter comparison.
•
Loss from operations was $0.97 million, increased from $0.53 million last quarter, but decreased year-over-year from $1.11 million the same quarter last year, and net loss of $0.68 million represented an increase from $0.46 million last quarter, but narrowed by $0.22 million if compared to $0.90 million the same quarter last year.

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 First Quarter

 

GIGAMEDIA 1Q25 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

 

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

 

1Q25

 

 

4Q24

 

 

Change
(%)

 

 

1Q25

 

 

1Q24

 

 

Change
(%)

 

Revenues

 

 

859

 

 

 

755

 

 

 

13.8

%

 

 

859

 

 

 

725

 

 

 

18.5

%

Gross Profit

 

 

460

 

 

 

398

 

 

 

15.6

%

 

 

460

 

 

 

346

 

 

 

32.9

%

Loss from Operations

 

 

(970

)

 

 

(531

)

 

NM

 

 

 

(970

)

 

 

(1,114

)

 

NM

 

Net Loss Attributable to GigaMedia

 

 

(677

)

 

 

(462

)

 

NM

 

 

 

(677

)

 

 

(902

)

 

NM

 

Loss Per Share Attributable to GigaMedia, Diluted

 

 

(0.06

)

 

 

(0.04

)

 

NM

 

 

 

(0.06

)

 

 

(0.08

)

 

NM

 

EBITDA (A)

 

 

(1,086

)

 

 

(918

)

 

NM

 

 

 

(1,086

)

 

 

(1,358

)

 

NM

 

Cash, Cash Equivalents and Restricted Cash

 

 

31,400

 

 

 

35,094

 

 

 

(10.5

)%

 

 

31,400

 

 

 

36,815

 

 

 

(14.7

)%

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.)

 

First-Quarter Financial Results

•
Consolidated revenues for the first quarter of 2025 increased by 13.8% quarter-on-quarter to $0.86 million, from $0.76 million in the fourth quarter of 2024, and by 18.5% year-over-year from $0.73 million in the first quarter of 2024.
•
Consolidated gross profit increased to $0.46 million from $0.40 million in last quarter and by 32.9% from $0.35 million in the same quarter last year.
•
Consolidated operating expenses were $1.43 million in the first quarter of 2025, approximately increased by $0.50 million when compared to prior quarter, but slightly reduced if compared to the same quarter last year.
•
Net loss for the first quarter of 2025 was $0.68 million, increased from $0.46 million net loss last quarter, but narrowed by $0.22 million if compared to $0.90 million the same quarter last year.
•
Cash, cash equivalents and restricted cash at the first quarter-end of 2025 amounted to $31.40 million, decreased by approximately $3.69 million from $35.09 million at the fourth quarter-end of 2024.

 

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $31.40 million, or approximately $2.84 per share as of March 31, 2025.

 

Business Outlook

The following forward-looking statements reflect GigaMedia’s expectations as of May 5, 2025. 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 2024 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

 

“Current widespread economic uncertainty has certainly cast a long shadow on consumer sentiment, and specifically, entertainment spending,” said GigaMedia CEO James Huang. “but we are confident we can ride out the disruption with our strategy of boosting the productivity of our products and services with a leaner team, and expanding customer base with effective marketing strategies.”

 

Meanwhile, our management continues exploring possibilities of expanding our business through strategic investments to create greater shareholder value. We will pursue promising investment opportunities prudently but more aggressively.

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

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 first quarter 2025 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. GigaMedia’s digital entertainment service business develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on browser/mobile games and casual games. 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 2025 and its other filings with the United States Securities and Exchange Commission.

# # #

(Tables to follow)

GIGAMEDIA LIMITED

CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

Three months ended

 

 

 

3/31/2025

 

 

12/31/2024

 

 

3/31/2024

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

Operating revenues

 

 

 

 

 

 

 

 

 

Digital entertainment service revenues

 

 

859

 

 

 

755

 

 

 

725

 

 

 

 

859

 

 

 

755

 

 

 

725

 

Operating costs

 

 

 

 

 

 

 

 

 

Cost of digital entertainment service revenues

 

 

399

 

 

 

357

 

 

 

379

 

 

 

 

399

 

 

 

357

 

 

 

379

 

Gross profit

 

 

460

 

 

 

398

 

 

 

346

 

Operating expenses

 

 

 

 

 

 

 

 

 

Product development and engineering expenses

 

 

195

 

 

 

164

 

 

 

185

 

Selling and marketing expenses

 

 

394

 

 

 

351

 

 

 

378

 

General and administrative expenses

 

 

840

 

 

 

414

 

 

 

896

 

Other

 

 

1

 

 

 

—

 

 

 

1

 

 

 

 

1,430

 

 

 

929

 

 

 

1,460

 

Loss from operations

 

 

(970

)

 

 

(531

)

 

 

(1,114

)

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

Interest income

 

 

423

 

 

 

471

 

 

 

471

 

Foreign exchange (loss) gain - net

 

 

(133

)

 

 

(246

)

 

 

(276

)

Changes in the fair value of an instrument recognized at fair value

 

 

3

 

 

 

(167

)

 

 

9

 

Other-net

 

 

—

 

 

 

11

 

 

 

8

 

 

 

 

293

 

 

 

69

 

 

 

212

 

Loss from continuing operations before income taxes

 

 

(677

)

 

 

(462

)

 

 

(902

)

Income tax expense

 

 

—

 

 

 

—

 

 

 

—

 

Net loss attributable to shareholders of GigaMedia

 

 

(677

)

 

 

(462

)

 

 

(902

)

Loss per share attributable to GigaMedia:

 

 

 

 

 

 

 

 

 

Basic

 

 

(0.06

)

 

 

(0.04

)

 

 

(0.08

)

Diluted

 

 

(0.06

)

 

 

(0.04

)

 

 

(0.08

)

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

Basic

 

 

11,052

 

 

 

11,052

 

 

 

11,052

 

Diluted

 

 

11,052

 

 

 

11,052

 

 

 

11,052

 

 

GIGAMEDIA LIMITED

CONSOLIDATED BALANCE SHEETS

 

 

 

3/31/2025

 

 

12/31/2024

 

 

3/31/2024

 

 

 

unaudited

 

 

audited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

31,087

 

 

 

34,781

 

 

 

36,502

 

Accounts receivable - net

 

 

145

 

 

 

141

 

 

 

239

 

Prepaid expenses

 

 

376

 

 

 

69

 

 

 

374

 

Restricted cash

 

 

313

 

 

 

313

 

 

 

313

 

Other receivables

 

 

268

 

 

 

2

 

 

 

371

 

Other current assets

 

 

130

 

 

 

127

 

 

 

138

 

Total current assets

 

 

32,319

 

 

 

35,433

 

 

 

37,937

 

 

 

 

 

 

 

 

 

 

 

Investment in securities - noncurrent

 

 

8,094

 

 

 

5,441

 

 

 

5,798

 

Property, plant & equipment - net

 

 

99

 

 

 

101

 

 

 

112

 

Intangible assets - net

 

 

6

 

 

 

7

 

 

 

10

 

Prepaid licensing and royalty fees

 

 

118

 

 

 

147

 

 

 

250

 

Other assets

 

 

1,210

 

 

 

1,229

 

 

 

1,322

 

Total assets

 

 

41,846

 

 

 

42,358

 

 

 

45,429

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

37

 

 

 

38

 

 

 

22

 

Accrued expenses

 

 

888

 

 

 

745

 

 

 

941

 

Unearned revenue

 

 

575

 

 

 

578

 

 

 

579

 

Other current liabilities

 

 

525

 

 

 

570

 

 

 

688

 

Total current liabilities

 

 

2,025

 

 

 

1,931

 

 

 

2,230

 

Other liabilities

 

 

35

 

 

 

84

 

 

 

379

 

Total liabilities

 

 

2,060

 

 

 

2,015

 

 

 

2,609

 

Total equity

 

 

39,786

 

 

 

40,343

 

 

 

42,820

 

Total liabilities and equity

 

 

41,846

 

 

 

42,358

 

 

 

45,429

 

 

GIGAMEDIA LIMITED

Reconciliations of Non-GAAP Results of Operations

 

 

 

Three months ended

 

 

 

3/31/2025

 

 

12/31/2024

 

 

3/31/2024

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

Reconciliation of Net Loss to EBITDA

 

 

 

 

 

 

 

 

 

Net loss attributable to GigaMedia

 

 

(677

)

 

 

(462

)

 

 

(902

)

Depreciation

 

 

12

 

 

 

13

 

 

 

12

 

Amortization

 

 

2

 

 

 

2

 

 

 

3

 

Interest income

 

 

(423

)

 

 

(471

)

 

 

(471

)

Interest expense

 

 

—

 

 

 

—

 

 

 

—

 

Income tax expense

 

 

—

 

 

 

—

 

 

 

—

 

EBITDA

 

 

(1,086

)

 

 

(918

)

 

 

(1,358

)