PR Newswire
TAIPEI, Oct. 28, 2021
TAIPEI, Oct. 28, 2021 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its third-quarter 2021 unaudited financial results.
Comments from Management
In the third quarter of 2021, GigaMedia reported revenues of $1.56 million, with a gross profit of $0.88 million, an operating loss of $0.84 million and a net loss of $0.73 million. Total revenues increased by 27.7% if compared to last quarter, and gross profit margin improved to 56.1% from 51.7% last quarter.
This third quarter saw a rebound of our revenues due to seasonality exhibited in certain of our licensed games. And the operating expenses were kept in check, resulting to a mild improvement in operating loss.
Meanwhile, we are closing to complete the development of our fast-paced remake of legacy casual games. We believe the remake, as a sustainable business model, will contribute to our steady growth and enhanced profitability for future years.
Third Quarter Overview
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia's digital entertainment service business FunTown develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Third Quarter
GIGAMEDIA3Q21 UNAUDITED CONSOLIDATED FINANCIAL RESULTS | | |||||||||||||||||||||||||
(unaudited, all figures in US$ thousands, except per share amounts) | | 3Q21 | | | 2Q21 | | | Change (%) | | | 3Q21 | | | 3Q20 | | | Change (%) | |||||||||
Revenues | | | 1,564 | | | | 1,225 | | | | 27.7% | | | | 1,564 | | | | 2,028 | | | | -22.9% | |||
Gross Profit | | | 877 | | | | 633 | | | | 38.6% | | | | 877 | | | | 1,196 | | | | -26.7% | |||
Loss from Operations | | | (842) | | | | (1,079) | | | NM | | | | (842) | | | | (357) | | | NM | |||||
Net Loss Attributable to GigaMedia | | | (728) | | | | (836) | | | NM | | | | (728) | | | | (248) | | | NM | |||||
Loss Per Share Attributable to GigaMedia, Diluted | | | (0.07) | | | | (0.08) | | | NM | | | | (0.07) | | | | (0.02) | | | NM | |||||
EBITDA (A) | | | (791) | | | | (911) | | | NM | | | | (791) | | | | (317) | | | NM | |||||
Cash, Cash Equivalents and Restricted Cash | | | 43,152 | | | | 43,650 | | | | -1.1% | | | | 43,152 | | | | 46,869 | | | | -7.9% |
|
(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.) |
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $43.2 million as of September 30, 2021, or $3.90 per share.
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of October 28, 2021. 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 2020 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 productivities of the existing games, executing effective marketing, and pursuing a steady expansion of customer base.
"Meanwhile, we are also exploring possibilities of expanding our business through strategic investments to maximize shareholders' value," stated CEO James Huang.
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 2021 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 2021 and its other filings with the United States Securities and Exchange Commission.
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
| | Three months ended | | | Nine months ended | | ||||||||||||||
| | 9/30/2021 | | | 6/30/2021 | | | 9/30/2020 | | | 9/30/2021 | | | 9/30/2020 | | |||||
| | unaudited | | | unaudited | | | unaudited Werbung Mehr Nachrichten zur GigaMedia Aktie kostenlos abonnieren
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