GigaMedia Announces Third-Quarter 2024 Financial Results
TAIPEI, Oct. 30, 2024 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2024 unaudited financial results.
Comments from Management
In the third quarter of 2024, GigaMedia reported revenues of $0.77 million, with a gross profit of $0.37 million, an operating loss of $1.01 million and a net loss of $0.32 million.
If compared to last quarter, the total revenues increased by 6.7% and gross profit by 3.3% , while gross profit margin at 48.4% was slightly lower than 49.9% last quarter.
In the following quarter, we will be enhancing the social networking function in our games to promote our players' community and to strengthen stickiness of our games.
Third Quarter Overview
-- Revenues increased by 6.7% quarter-on-quarter to approximately $0.77
million from $0.72 million last quarter.
-- Consolidated loss from operations for the third quarter of 2024 amounted
to $1.01 million, slightly reduced from a loss of $1.05 million last
quarter.
-- The net asset value was around $3.78 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 mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Third Quarter
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((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 third quarter of 2024 were $0.77 million,
representing an increase of 6.7% compared to $0.72 million in the prior
quarter, but decreased by 28.2% year-over-year from $1.01 million the
same quarter last year.
-- Consolidated gross profit increased by 3.3% quarter-on-quarter to $0.37
million from $0.36 million last quarter, but decreased by 36.2%
year-over-year from $0.58 million in the third quarter last year.
-- Consolidated loss from operation of the third quarter of 2024 was $1.01
million, representing a slight decrease in loss from $1.05 million from
last quarter.
-- Consolidated net loss of the third quarter of 2024 was $0.32 million
compared to $0.61 million in last quarter.
-- Cash, cash equivalents and restricted cash at the end of the third
quarter of 2024 was $35.3 million.
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $35.3 million as of September 30, 2024, or $3.20 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of October 30, 2024. Given potential changes in economic conditions and consumer spending, the evolving nature of online games, and various other risk factors, including those discussed in the Company's 2023 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.
"For the following quarter, GigaMedia will continue the strategies of internally-driven growth by improving productivity of the existing games, executing effective marketing, and pursuing a steady expansion of customer base," stated GigaMedia CEO James Huang.
In the meantime, we will continue reviewing suitable prospects for strategic investment and acquisition targets to increase corporate growth and maximize 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 third quarter 2024 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 2024 and its other filings with the United States Securities and Exchange Commission.
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
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GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
9/30/2024 6/30/2024 9/30/2023
unaudited unaudited unaudited
USD USD USD
Assets
Current assets
Cash and cash equivalents 35,015 36,030 38,510
Accounts receivable - net 157 198 253
Prepaid expenses 123 226 123
Restricted cash 313 313 313
Other receivables 392 496 364
Other current assets 144 142 145
Total current assets 36,144 37,405 39,708
Investment in securities - noncurrent 6,840 5,819 9,433
Property, plant & equipment - net 102 109 116
Intangible assets - net 5 8 10
Prepaid licensing and royalty fees 179 215 65
Other assets 1,244 1,264 1,348
Total assets 44,514 44,820 50,680
Liabilities and equity
Accounts payable 27 23 30
Accrued compensation 350 250 321
Accrued expenses 912 778 1,005
Unearned revenue 608 565 812
Other current liabilities 691 686 720
Total current liabilities 2,588 2,302 2,888
Other liabilities 154 254 562
Total liabilities 2,742 2,556 3,450
Total equity 41,772 42,264 47,230
Total liabilities and equity 44,514 44,820 50,680
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
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SOURCE GigaMedia
