gigm-ex991_24.htm

TAIPEI, Taiwan, May 3, 2022 – GigaMedia Limited (NASDAQ: GIGM) today announced its first quarter 2022 unaudited financial results.

For the first quarter of 2022, GigaMedia reported revenues of $1.55 million with a gross profit of $0.90 million, an operating loss of $0.83 million and the net loss of $1.10 million. Total revenues increased by 23.0% if compared to the previous quarter.

The improvement exhibited in revenues is mainly due to our efforts in promoting a licensed game amidst a long stay-home period in Hong Kong. Meanwhile, we continued fine-tuning our fast-paced remake of legacy casual games to increase players’ stickiness and average revenue per user. With a healthier operating model, we believe it will bring us a steady growth and enhanced profitability in the future

While many countries around the world began easing COVID-19 restrictions, Hong Kong and Taiwan, previously with comparatively few cases, have been facing a wave of outbreak recently, and certain disruptions to our operations were resulted. “We have taken measures to mitigate the impact of the pandemic on our business,” stated GigaMedia CEO James Huang.

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.

GIGAMEDIA 1Q22 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)	1Q22			4Q21			Change (%)			1Q22			1Q21			Change (%)
Revenues		1,546			1,257			23.0	%		1,546			1,446			6.9	%
Gross Profit		901			607			48.4	%		901			791			13.9	%
Loss from Operations		(828	)		(1,152	)	NM				(828	)		(901	)	NM
Net Loss Attributable to GigaMedia		(1,099	)		(986	)	NM				(1,099	)		(875	)	NM
Loss Per Share Attributable to GigaMedia, Diluted		(0.10	)		(0.09	)	NM				(0.10	)		(0.08	)	NM
EBITDA ^(A)		(1,154	)		(1,005	)	NM				(1,154	)		(949	)	NM
Cash, Cash Equivalent and Restricted Cash		40,534			41,762			(2.9	)%		40,534			44,446			(8.8	)%

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $40.5 million, or approximately $3.67 per share as of March 31, 2022.

The following forward-looking statements reflect GigaMedia’s expectations as of May 3, 2022. 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 2021 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

“Notwithstanding the disruption of the pandemic, we are making progress in developing and calibrating a robust business model for our in-house casual games,” said GigaMedia CEO James Huang. “We will continue executing our strategy of internally-driven growth by cultivating customer relationships, boosting productivity of the products and improving cost structure and effective marketing.”

Meanwhile, our business strategies always include expanding through mergers and acquisitions. We will keep pursuing investment opportunities that have strategic capacity to accelerate our growth and enhance shareholders’ value.

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.

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.

For Q&A regarding the first quarter 2022 performance upon the release, investors may send the questions via email to IR@gigamedia.com.tw, and the responses will be replied individually.

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 2022 and its other filings with the United States Securities and Exchange Commission.

	Three months ended
	3/31/2022			12/31/2021			3/31/2021
	unaudited			unaudited			unaudited
	USD			USD			USD
Operating revenues
Digital entertainment service revenues		1,545,575			1,257,099			1,446,276
Other revenues		—			—			—
		1,545,575			1,257,099			1,446,276
Operating costs
Cost of digital entertainment service revenues		644,369			649,791			655,757
Cost of other revenues		—			—			—
		644,369			649,791			655,757
Gross profit		901,206			607,308			790,519
Operating expenses
Product development and engineering expenses		322,438			363,917			345,898
Selling and marketing expenses		435,205			495,573			397,033
General and administrative expenses		971,101			897,473			946,192
Other		226			2,020			2,599
		1,728,970			1,758,983			1,691,722
Loss from operations		(827,764	)		(1,151,675	)		(901,203	)
Non-operating income (expense)
Interest income		62,835			24,951			78,595
Foreign exchange (loss) gain - net		(339,131	)		41,038			(49,357	)
Gain on disposal of investments		—			45,863			—
Other-net		4,922			53,605			(2,809	)
		(271,374	)		165,457			26,429
Loss from continuing operations before income taxes		(1,099,138	)		(986,218	)		(874,774	)
Income tax benefit (expense)		—			—			—
Net loss attributable to shareholders of GigaMedia		(1,099,138	)		(986,218	)		(874,774	)
Loss per share attributable to GigaMedia
Basic:		(0.10	)		(0.09	)		(0.08	)
Diluted:		(0.10	)		(0.09	)		(0.08	)
Weighted average shares outstanding:
Basic		11,052,235			11,052,235			11,052,235
Diluted		11,052,235			11,052,235			11,052,235

	3/31/2022		12/31/2021		3/31/2021
	unaudited		audited		unaudited
	USD		USD		USD
Assets
Current assets
Cash and cash equivalents		40,221,362		41,455,445		44,146,308
Accounts receivable - net		245,742		264,890		281,945
Prepaid expenses		728,280		400,954		393,587
Restricted cash		312,772		306,411		300,000
Other receivables		21,143		473		25,937
Other current assets		151,560		154,344		156,622
Total current assets		41,680,859		42,582,517		45,304,399

Marketable securities - noncurrent		10,322,000		10,322,000		10,000,000
Property, plant & equipment - net		79,266		87,806		38,860
Intangible assets - net		9,166		11,746		11,596
Prepaid licensing and royalty fees		299,117		35,017		108,878
Other assets		2,322,368		2,479,237		2,481,910
Total assets		54,712,776		55,518,323		57,945,643

Liabilities and equity
Accounts payable		47,916		118,343		88,009
Accrued compensation		188,353		236,316		161,287
Accrued expenses		1,436,606		1,199,039		1,083,293
Unearned revenue		890,395		880,203		949,396
Other current liabilities		820,580		782,630		740,286
Total current liabilities		3,383,850		3,216,531		3,022,271
Other liabilities		1,262,455		1,450,487		1,655,437
Total liabilities		4,646,305		4,667,018		4,677,708
Total equity		50,066,471		50,851,305		53,267,935
Total liabilities and equity		54,712,776		55,518,323		57,945,643

	Three months ended
	3/31/2022			12/31/2021			3/31/2021
	unaudited			unaudited			unaudited
	USD			USD			USD
Reconciliation of Net Income (Loss) to EBITDA
Net loss attributable to GigaMedia		(1,099,138	)		(986,218	)		(874,774	)
Depreciation		5,764			3,889			1,902
Amortization		2,239			2,254			2,010
Interest income		(62,835	)		(24,951	)		(78,595	)
Interest expense		—			—			—
Income tax (benefit) expense		—			—			—
EBITDA		(1,153,970	)		(1,005,026	)		(949,457	)

FOR IMMEDIATE RELEASE				For further information contact:

				Investor Relations Department
				Country/City Code 8862 Tel: 2656-8096
				IR@gigamedia.com.tw