GigaMedia Announces Second-Quarter 2024 Financial Results
Comments from Management
In the second quarter of 2024, GigaMedia reported revenues of
While the revenues were comparable to those in the first quarter 2024, both our gross profit and loss from operations were improved, and the net loss was slashed by
Currently we focused on fine-tuning the operation of our casual games and customer platform for upcoming summer vacation.
Second Quarter Overview
- Operating revenues slightly decreased by approximately 0.6% quarter-on-quarter, to
$0.72 million in last quarter, and decreased by 29.7% year-over-year from$1.03 million the same period last year. - Gross profit increased by 4.0% to
$0.36 million from$0.35 million in last quarter, and decreased by 36.4% compared to$0.57 million in the same period last year. - The net asset value was
$3.82 per share.
Unaudited Consolidated Financial Results
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Second Quarter
GIGAMEDIA 2Q24 UNAUDITED CONSOLIDATED FINANCIAL RESULTS |
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(unaudited, all figures in US$ thousands, except per share amounts) |
|
2Q24 |
|
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1Q24 |
|
|
Change |
|
|
2Q24 |
|
|
2Q23 |
|
|
Change |
|
||||||
Revenues |
|
|
721 |
|
|
|
725 |
|
|
|
(0.6) % |
|
|
|
721 |
|
|
|
1,025 |
|
|
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(29.7) % |
|
Gross Profit |
|
|
360 |
|
|
|
346 |
|
|
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4.0 % |
|
|
|
360 |
|
|
|
566 |
|
|
|
(36.4 |
|
Loss from Operations |
|
|
(1,048) |
|
|
|
(1,114) |
|
|
NM |
|
|
|
(1,048) |
|
|
|
(920) |
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|
NM |
|
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Net Loss Attributable to GigaMedia |
|
|
(612) |
|
|
|
(902) |
|
|
NM |
|
|
|
(612) |
|
|
|
(562) |
|
|
NM |
|
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Loss Per Share Attributable to GigaMedia, Diluted |
|
|
(0.06) |
|
|
|
(0.08) |
|
|
NM |
|
|
|
(0.06) |
|
|
|
(0.05) |
|
|
NM |
|
||
EBITDA (A) |
|
|
(1,116) |
|
|
|
(1,358) |
|
|
NM |
|
|
|
(1,116) |
|
|
|
(983) |
|
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NM |
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||
Cash, Cash Equivalents and Restricted Cash |
|
|
36,343 |
|
|
|
36,815 |
|
|
|
(1.3) % |
|
|
|
36,343 |
|
|
|
37,775 |
|
|
|
(3.8) % |
|
NM= Not Meaningful
(A) EBITDA (earnings before interest, taxes, depreciation, and amortization) is provided as a supplement to results provided in accordance with |
Second-Quarter Financial Results
-
Consolidated revenues for the second quarter of 2024 slightly decreased by 0.6% quarter-on-quarter to
$0.72 million in last quarter, and decreased by 29.7% year-over-year from$1.02 million the same period last year. -
Consolidated gross profit was
$0.36 million , increased by 4.0% quarter-on-quarter but decreased by 36.4% year-over-year. -
Consolidated loss from operation of the second quarter of 2024 was a loss of
$1.05 million , comparable to the operating loss of$1.11 in the first quarter. -
Net loss in the second quarter of 2024 was
$0.61 million , decreased from a net loss of$0.90 million in the first quarter. -
Cash, cash equivalents and restricted cash at the end of the second quarter of 2024 amounted to
$36.3 million , decreased by 1.3% from$36.8 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
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of
"In the second half of 2024, we will dedicate ourselves to boosting the productivity of our products and services. GigaMedia will stick to the strategy of pursuing healthy growth with a lean operation while seeking for strategic expansion and new business," stated GigaMedia CEO
As for new business, our management continues evaluating and pursuing prospects of strategic investment targets that are with potential to expand our business and create greater 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
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
Q&A
For Q&A regarding the second 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
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
(Tables to follow)
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three months ended |
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Six months ended |
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unaudited |
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|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
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|||||
|
|
USD |
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|
USD |
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|
USD |
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USD |
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|
USD |
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|||||
Operating revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Digital entertainment service revenues |
|
|
721 |
|
|
|
725 |
|
|
|
1,025 |
|
|
|
1,445 |
|
|
|
2,350 |
|
|
|
|
721 |
|
|
|
725 |
|
|
|
1,025 |
|
|
|
1,445 |
|
|
|
2,350 |
|
Operating costs |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Cost of digital entertainment service revenues |
|
|
361 |
|
|
|
379 |
|
|
|
459 |
|
|
|
741 |
|
|
|
991 |
|
|
|
|
361 |
|
|
|
379 |
|
|
|
459 |
|
|
|
741 |
|
|
|
991 |
|
Gross profit |
|
|
360 |
|
|
|
346 |
|
|
|
566 |
|
|
|
704 |
|
|
|
1,359 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product development and engineering expenses |
|
|
175 |
|
|
|
185 |
|
|
|
188 |
|
|
|
360 |
|
|
|
367 |
|
Selling and marketing expenses |
|
|
348 |
|
|
|
378 |
|
|
|
407 |
|
|
|
726 |
|
|
|
838 |
|
General and administrative expenses |
|
|
885 |
|
|
|
896 |
|
|
|
891 |
|
|
|
1,781 |
|
|
|
1,770 |
|
Other |
|
|
— |
|
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
1 |
|
|
|
|
1,408 |
|
|
|
1,460 |
|
|
|
1,486 |
|
|
|
2,868 |
|
|
|
2,976 |
|
Loss from operations |
|
|
(1,048) |
|
|
|
(1,114) |
|
|
|
(920) |
|
|
|
(2,164) |
|
|
|
(1,617) |
|
Non-operating income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Interest income |
|
|
518 |
|
|
|
471 |
|
|
|
435 |
|
|
|
989 |
|
|
|
840 |
|
Foreign exchange loss - net |
|
|
(87) |
|
|
|
(276) |
|
|
|
(136) |
|
|
|
(362) |
|
|
|
(137) |
|
Changes in the fair value of an instrument recognized at fair value |
|
|
3 |
|
|
|
9 |
|
|
|
52 |
|
|
|
13 |
|
|
|
33 |
|
Other-net |
|
|
2 |
|
|
|
8 |
|
|
|
7 |
|
|
|
10 |
|
|
|
7 |
|
|
|
|
436 |
|
|
|
212 |
|
|
|
358 |
|
|
|
650 |
|
|
|
743 |
|
Loss from continuing operations before income taxes |
|
|
(612) |
|
|
|
(902) |
|
|
|
(562) |
|
|
|
(1,514) |
|
|
|
(874) |
|
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss attributable to shareholders of GigaMedia |
|
|
(612) |
|
|
|
(902) |
|
|
|
(562) |
|
|
|
(1,514) |
|
|
|
(874) |
|
Loss per share attributable to GigaMedia: |
|
|
|
|
|
|
|
|
|
|
|
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|
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|||||
Basic |
|
|
(0.06) |
|
|
|
(0.08) |
|
|
|
(0.05) |
|
|
|
(0.14) |
|
|
|
(0.08) |
|
Diluted |
|
|
(0.06) |
|
|
|
(0.08) |
|
|
|
(0.05) |
|
|
|
(0.14) |
|
|
|
(0.08) |
|
Weighted average shares outstanding: |
|
|
|
|
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|
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|
|
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|
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|||||
Basic |
|
|
11,052 |
|
|
|
11,052 |
|
|
|
11,052 |
|
|
|
11,052 |
|
|
|
11,052 |
|
Diluted |
|
|
11,052 |
|
|
|
11,052 |
|
|
|
11,052 |
|
|
|
11,052 |
|
|
|
11,052 |
|
CONSOLIDATED BALANCE SHEET
|
|
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|
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|
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|||
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|||
|
|
USD |
|
|
USD |
|
|
USD |
|
|||
Assets |
|
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|
|
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|
|
|
|||
Current assets |
|
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|
|
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Cash and cash equivalents |
|
|
36,030 |
|
|
|
36,502 |
|
|
|
37,462 |
|
Investment in securities-current |
|
|
— |
|
|
|
— |
|
|
|
7,950 |
|
Accounts receivable - net |
|
|
198 |
|
|
|
239 |
|
|
|
187 |
|
Prepaid expenses |
|
|
226 |
|
|
|
374 |
|
|
|
225 |
|
Restricted cash |
|
|
313 |
|
|
|
313 |
|
|
|
313 |
|
Other receivables |
|
|
496 |
|
|
|
371 |
|
|
|
766 |
|
Other current assets |
|
|
142 |
|
|
|
138 |
|
|
|
119 |
|
Total current assets |
|
|
37,405 |
|
|
|
37,937 |
|
|
|
47,022 |
|
|
|
|
|
|
|
|
|
|
|
|||
Investment in securities - noncurrent |
|
|
5,819 |
|
|
|
5,798 |
|
|
|
2,371 |
|
Property, plant & equipment - net |
|
|
109 |
|
|
|
112 |
|
|
|
132 |
|
Intangible assets - net |
|
|
8 |
|
|
|
10 |
|
|
|
13 |
|
Prepaid licensing and royalty fees |
|
|
215 |
|
|
|
251 |
|
|
|
102 |
|
Other assets |
|
|
1,264 |
|
|
|
1,322 |
|
|
|
1,510 |
|
Total assets |
|
|
44,820 |
|
|
|
45,430 |
|
|
|
51,150 |
|
|
|
|
|
|
|
|
|
|
|
|||
Liabilities and equity |
|
|
|
|
|
|
|
|
|
|||
Accounts payable |
|
|
23 |
|
|
|
23 |
|
|
|
29 |
|
Accrued compensation |
|
|
250 |
|
|
|
157 |
|
|
|
231 |
|
Accrued expenses |
|
|
778 |
|
|
|
784 |
|
|
|
855 |
|
Unearned revenue |
|
|
565 |
|
|
|
579 |
|
|
|
848 |
|
Other current liabilities |
|
|
686 |
|
|
|
688 |
|
|
|
718 |
|
Total current liabilities |
|
|
2,302 |
|
|
|
2,231 |
|
|
|
2,681 |
|
Other liabilities |
|
|
254 |
|
|
|
379 |
|
|
|
714 |
|
Total liabilities |
|
|
2,556 |
|
|
|
2,610 |
|
|
|
3,395 |
|
Total equity |
|
|
42,264 |
|
|
|
42,820 |
|
|
|
47,755 |
|
Total liabilities and equity |
|
|
44,820 |
|
|
|
45,430 |
|
|
|
51,150 |
|
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
|
Three months ended |
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Six months ended |
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|
|||||
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|
unaudited |
|
|||||
|
|
USD |
|
|
USD |
|
|
USD |
|
|
USD |
|
|
USD |
|
|||||
Reconciliation of Net Loss to EBITDA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net loss attributable to GigaMedia |
|
|
(612) |
|
|
|
(902) |
|
|
|
(562) |
|
|
|
(1,514) |
|
|
|
(874) |
|
Depreciation |
|
|
12 |
|
|
|
12 |
|
|
|
11 |
|
|
|
24 |
|
|
|
22 |
|
Amortization |
|
|
2 |
|
|
|
3 |
|
|
|
3 |
|
|
|
5 |
|
|
|
6 |
|
Interest income |
|
|
(518) |
|
|
|
(471) |
|
|
|
(435) |
|
|
|
(989) |
|
|
|
(840) |
|
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
EBITDA |
|
|
(1,116) |
|
|
|
(1,358) |
|
|
|
(983) |
|
|
|
(2,474) |
|
|
|
(1,686) |
|
View original content:https://www.prnewswire.com/news-releases/gigamedia-announces-second-quarter-2024-financial-results-302211097.html
SOURCE GigaMedia