EX-99.1 2 gigm-ex991_6.htm EX-99.1 gigm-ex991_6.htm

Exhibit 99.1

 

FOR IMMEDIATE RELEASE

  

 

  

For further information contact:

 

  

 

  

 

 

  

 

  

Investor Relations Department

 

  

 

  

Country/City Code 8862 Tel: 2656-8096

 

  

 

  

IR@gigamedia.com.tw

 

GigaMedia Announces Second-Quarter 2022

Financial Results

 

TAIPEI, Taiwan, July 29, 2022 GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2022 unaudited financial results.

Comments from Management

 

In the second quarter of 2022, GigaMedia reported revenues of $1.36 million, with a gross profit $0.77 million, an operating loss of $0.84 million and the net loss of $1.13 million. Total revenues decreased by 11.8% if compared to the previous quarter.

 

The decrease in revenues was mainly as a result of a weaker consumer sentiment on entertainment, which was undermined by inflation, downturn in financial markets, and an unprecedented COVID-19 upsurge in Taiwan.

 

“The first half of 2022 had posed challenges for us,” said GigaMedia CEO James Huang, “nonetheless, we managed to minimize the adverse impacts to our business and continued making progress in improving our products and services.”

 

Second Quarter Overview

Operating revenues decreased by approximately 11.8% quarter-on-quarter, to $1.36 million from $1.55 million in last quarter, but increased by 11.3% year-over-year from $1.22 million the same period last year. The decrease from last quarter was mainly due to reduced consumer spending on entertainment amid a worsening economic environment.

Gross profit decreased by 14.1% to $0.77 million from $0.90 million in last quarter, and increased by 22.3% compared to $0.63 million in the same period last year.

The net asset value was $4.46 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 2Q22 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

 

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

 

2Q22

 

 

1Q22

 

 

Change

(%)

 

 

2Q22

 

 

 

 

2Q21

 

 

Change

(%)

 

Revenues

 

 

1,363

 

 

 

1,546

 

 

 

-11.84

%

 

 

1,363

 

 

 

 

 

1,225

 

 

 

11.27

%

Gross Profit

 

 

774

 

 

 

901

 

 

 

-14.10

%

 

 

774

 

 

 

 

 

633

 

 

 

22.27

%

Loss from Operations

 

 

(844

)

 

 

(828

)

 

NM

 

 

 

(844

)

 

 

 

 

(1,079

)

 

NM

 

Net Loss Attributable to GigaMedia

 

 

(1,131

)

 

 

(1,099

)

 

NM

 

 

 

(1,131

)

 

 

 

 

(836

)

 

NM

 

Net Loss Per Share Attributable to GigaMedia, Diluted

 

 

(0.10

)

 

 

(0.10

)

 

NM

 

 

 

(0.10

)

 

 

 

 

(0.08

)

 

NM

 

EBITDA (A)

 

 

(1,190

)

 

 

(1,154

)

 

NM

 

 

 

(1,190

)

 

 

 

 

(911

)

 

NM

 

Cash, Cash Equivalent and Restricted Cash

 

 

39,631

 

 

 

40,534

 

 

 

-2.23

%

 

 

39,631

 

 

 

 

 

43,650

 

 

 

-9.21

%

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 2022 decreased by 11.8% quarter-on-quarter to $1.36 million from $1.55 million in last quarter, but increased by 11.3% year-over-year from $1.22 million the same period last year.

Consolidated gross profit was $0.77 million, decreased by 14.1% quarter-on-quarter but increased by 22.3% year-over-year.

Consolidated loss from operation of the second quarter of 2022 was a loss of $0.84 million, comparable to the operating loss in the first quarter.

Net loss in the second quarter of 2022 was $1.13 million, increased slightly from a net loss of $1.10 million in the first quarter.

Cash, cash equivalents and restricted cash at the end of the second quarter of 2022 amounted to $39.6 million, decreased by 2.2% from $40.5 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 $39.6 million, or $3.59 per share, as of June 30, 2022.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of July 29, 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.

 

“In the second half of 2022, we will be committing ourselves to boosting the productivity of our products and services by enhancing customer loyalty to our platforms, and expanding customer base with effective marketing strategies,” stated GigaMedia CEO James Huang.

 

Meanwhile, our management continues exploring possibilities of expanding our business through strategic investments to create greater shareholder value. And the recent upheaval in the global capital market may exhibit a chance of acquiring quality assets at a discount, for which we will pursue promising investment opportunities prudently but boldly.

 

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 2022 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 2022 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

 

 

 

06/30/2022

 

 

03/31/2022

 

 

06/30/2021

 

 

06/30/2022

 

 

06/30/2021

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital entertainment service revenues

 

 

1,363,287

 

 

 

1,545,575

 

 

 

1,224,749

 

 

 

2,908,862

 

 

 

2,671,025

 

Other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,363,287

 

 

 

1,545,575

 

 

 

1,224,749

 

 

 

2,908,862

 

 

 

2,671,025

 

Operating costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of Digital entertainment service revenues

 

 

588,907

 

 

 

644,369

 

 

 

591,687

 

 

 

1,233,276

 

 

 

1,247,444

 

Cost of other revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

588,907

 

 

 

644,369

 

 

 

591,687

 

 

 

1,233,276

 

 

 

1,247,444

 

Gross profit

 

 

774,380

 

 

 

901,206

 

 

 

633,062

 

 

 

1,675,586

 

 

 

1,423,581

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product development and engineering expenses

 

 

320,965

 

 

 

322,438

 

 

 

373,057

 

 

 

643,403

 

 

 

718,955

 

Selling and marketing expenses

 

 

376,899

 

 

 

435,205

 

 

 

376,914

 

 

 

812,104

 

 

 

773,947

 

General and administrative expenses

 

 

920,189

 

 

 

971,101

 

 

 

960,474

 

 

 

1,891,290

 

 

 

1,906,666

 

Other

 

 

712

 

 

 

226

 

 

 

2,103

 

 

 

938

 

 

 

4,703

 

 

 

 

1,618,765

 

 

 

1,728,970

 

 

 

1,712,548

 

 

 

3,347,735

 

 

 

3,404,271

 

Income (loss) from operations

 

 

(844,385

)

 

 

(827,764

)

 

 

(1,079,486

)

 

 

(1,672,149

)

 

 

(1,980,690

)

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

66,575

 

 

 

62,835

 

 

 

80,184

 

 

 

129,410

 

 

 

158,779

 

Foreign exchange (loss) gain - net

 

 

(380,540

)

 

 

(339,131

)

 

 

163,139

 

 

 

(719,671

)

 

 

113,782

 

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

 

 

11,138

 

 

 

 

 

 

 

 

 

11,138

 

 

 

 

Other - net

 

 

16,349

 

 

 

4,922

 

 

 

176

 

 

 

21,271

 

 

 

(2,633

)

 

 

 

(286,478

)

 

 

(271,374

)

 

 

243,499

 

 

 

(557,852

)

 

 

269,928

 

(Loss) Income from continuing operations before income taxes

 

 

(1,130,863

)

 

 

(1,099,138

)

 

 

(835,987

)

 

 

(2,230,001

)

 

 

(1,710,762

)

Income tax benefit (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Income from continuing operations

 

 

(1,130,863

)

 

 

(1,099,138

)

 

 

(835,987

)

 

 

(2,230,001

)

 

 

(1,710,762

)

Net (loss) income

 

 

(1,130,863

)

 

 

(1,099,138

)

 

 

(835,987

)

 

 

(2,230,001

)

 

 

(1,710,762

)

Less: Net loss attributable to noncontrolling interest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net (loss) income attributable to shareholders of GigaMedia

 

 

(1,130,863

)

 

 

(1,099,138

)

 

 

(835,987

)

 

 

(2,230,001

)

 

 

(1,710,762

)

(Loss) Earnings per share attributable to GigaMedia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Earnings from continuing operations

 

 

(0.10

)

 

 

(0.10

)

 

 

(0.08

)

 

 

(0.20

)

 

 

(0.15

)

Loss from discontinued operations

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

 

(0.10

)

 

 

(0.10

)

 

 

(0.08

)

 

 

(0.20

)

 

 

(0.15

)

Diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(Loss) Earnings from continuing operations

 

 

(0.10

)

 

 

(0.10

)

 

 

(0.08

)

 

 

(0.20

)

 

 

(0.15

)

Loss from discontinued operations

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

0.00

 

 

 

 

(0.10

)

 

 

(0.10

)

 

 

(0.08

)

 

 

(0.20

)

 

 

(0.15

)

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 SHEET

 

 

 

06/30/2022

 

 

03/31/2022

 

 

06/30/2021

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

39,317,946

 

 

 

40,221,362

 

 

 

43,350,182

 

Accounts receivable - net

 

 

192,716

 

 

 

245,742

 

 

 

282,780

 

Prepaid expenses

 

 

574,021

 

 

 

728,280

 

 

 

242,488

 

Restricted cash

 

 

312,746

 

 

 

312,772

 

 

 

300,000

 

Other receivables

 

 

42,222

 

 

 

21,143

 

 

 

52,422

 

Other current assets

 

 

144,983

 

 

 

151,560

 

 

 

154,622

 

Total current assets

 

 

40,584,634

 

 

 

41,680,859

 

 

 

44,382,494

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Marketable securities - noncurrent

 

 

10,322,000

 

 

 

10,322,000

 

 

 

10,000,000

 

Property, plant & equipment - net

 

 

70,913

 

 

 

79,266

 

 

 

48,349

 

Intangible assets - net

 

 

6,718

 

 

 

9,166

 

 

 

9,625

 

Prepaid licensing and royalty fees

 

 

249,965

 

 

 

299,117

 

 

 

73,762

 

Other assets

 

 

2,155,254

 

 

 

2,322,368

 

 

 

2,586,685

 

Total assets

 

 

53,389,484

 

 

 

54,712,776

 

 

 

57,100,915

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

31,757

 

 

 

47,916

 

 

 

44,870

 

Accrued compensation

 

 

268,124

 

 

 

188,353

 

 

 

279,896

 

Accrued expenses

 

 

1,104,625

 

 

 

1,436,606

 

 

 

1,138,777

 

Unearned revenue

 

 

824,361

 

 

 

890,395

 

 

 

930,026

 

Other current liabilities

 

 

819,888

 

 

 

820,580

 

 

 

787,009

 

Total current liabilities

 

 

3,048,755

 

 

 

3,383,850

 

 

 

3,180,578

 

Other liabilities

 

 

1,064,777

 

 

 

1,262,455

 

 

 

1,636,271

 

Total liabilities

 

 

4,113,532

 

 

 

4,646,305

 

 

 

4,816,849

 

GigaMedia’s shareholders’ equity

 

 

49,275,952

 

 

 

50,066,471

 

 

 

52,284,066

 

Noncontrolling interest

 

 

 

 

 

 

 

 

 

Total equity

 

 

49,275,952

 

 

 

50,066,471

 

 

 

52,284,066

 

Total liabilities and equity

 

 

53,389,484

 

 

 

54,712,776

 

 

 

57,100,915

 

 

 


 

GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

 

 

 

Three months ended

 

 

Six months ended

 

 

 

06/30/2022

 

 

03/31/2022

 

 

06/30/2021

 

 

06/30/2022

 

 

06/30/2021

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Reconciliation of Net Income (Loss) to EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to GigaMedia

 

 

(1,130,863

)

 

 

(1,099,138

)

 

 

(835,987

)

 

 

(2,230,001

)

 

 

(1,710,762

)

Depreciation

 

 

5,472

 

 

 

5,764

 

 

 

2,920

 

 

 

11,236

 

 

 

4,822

 

Amortization

 

 

2,125

 

 

 

2,239

 

 

 

2,242

 

 

 

4,364

 

 

 

4,252

 

Interest income

 

 

(66,574

)

 

 

(62,835

)

 

 

(80,184

)

 

 

(129,409

)

 

 

(158,779

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax (benefit) expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

(1,189,840

)

 

 

(1,153,970

)

 

 

(911,009

)

 

 

(2,343,810

)

 

 

(1,860,467

)