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GigaMedia Announces Fourth-Quarter and Full Year 2017 Financial Results

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GigaMedia Announces Fourth-Quarter and Full Year 2017 Financial Results

PR Newswire

TAIPEI, Taiwan, March 29, 2018 /PRNewswire/ -- GigaMedia Limited (NASDAQ:GIGM) today announced its unaudited financial results for the fourth quarter and full year of 2017.

"After the efforts in recent years in cleaning up the Company's balance sheet and streamlining its operations, GigaMedia is now operating with a healthy margin, efficient marketing expenditures and disciplined overhead costs," stated GigaMedia Limited Chief Executive Officer James Huang.

Fourth Quarter and Full Year Overview

  • Consolidated 4Q revenues decreased 11.98% quarter-over-quarter and 0.49% year-over-year. Full year revenues increased 29.26% to $11.6 million compared to $9.0 million in 2016.
  • Gross profit decreased 30.89% comparing to 3Q 2017, but increased 2.65% comparing to the prior year fourth quarter, to approximately $1.0 million. Full year gross profit increased by $1.7 million or 34.45% to $6.5 million. Gross margin rate for full year of 2017 was 56.04%, slightly increased from 53.87% last year.
  • Operating expenses in 4Q, excluding a reclassification from non-operating income of $1.7 million related to the ArcheAge transaction in 2Q 2017, slightly decreased 1.24% from prior quarter. Full year operating expenses, excluding impairment losses and the ArcheAge income, decreased by $1.3 million or 13.24% to $8.7 million from $10.0 million.
  • Income from operations for 4Q, excluding the reclassification from non-operating income of the $1.7 million ArcheAge income, decreased to a loss $0.7 million from a loss $0.3 million in 3Q, mainly due to lower revenues in 4Q. Full year operating loss, if excluding impairment losses and the ArcheAge income, were a loss of $2.2 million for 2017, representing a loss reduction of $3.0 million.
  • Consolidated general and administrative expenses in 4Q decreased by 17.31% quarter-on-quarter and by 10.89% year-over-year. Full year consolidated general and administrative expenses slightly increased by 2.07%.
  • Income tax benefit of $1.7 million in this quarter was related to a reversal of deferred income tax liabilities originally accrued for certain withholding obligations.
  • Adjusted EBITDA for the year ended December 31, 2017 was a loss of $1.1 million, compared to adjusted EBITA of $7.2 million loss in the prior year.

Unaudited Consolidated Financial Results

GigaMedia Limited is a diversified provider of online games. GigaMedia's online games business FunTown develops and operates a suite of games in Taiwan and Hong Kong, with focus on online games and other digital entertainments.

Unaudited consolidated results of GigaMedia are summarized in the table below.

For the Fourth Quarter

GIGAMEDIA4Q17 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

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


4Q17



3Q17



Change

(%)



4Q17



4Q16



Change

(%)

Revenues


2,028



2,304



-11.98%



2,028



2,038



-0.49%

Gross Profit


1,007



1,457



-30.89%



1,007



981



2.65%

Income (Loss) from Operations


988



(315)



NM



988



(4,422)



NM

Net Income (Loss) Attributable to GigaMedia


1,070



(129)



NM



1,070



(2,807)



NM

Net Income (Loss) Per Share Attributable to GigaMedia, Diluted


0.10



(0.01)



NM



0.10



(0.25)



NM

EBITDA (A)


(785)



(305)



NM



(785)



(3,948)



NM

Cash and Marketable Securities-Current


63,670



63,770



-0.16%



63,670



65,713



-3.11%


(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.)

 

Fourth-Quarter Financial Results

  • Consolidated revenues for the fourth quarter of 2017 decreased 11.98% quarter-on-quarter from $2.3 million to $2.0 million and slightly decreased by 0.49% year-over-year.
  • Consolidated gross profit decreased 30.89% quarter-on-quarter from $1.5 million to $1.0 million and increased 2.65% year-over-year.
  • Consolidated operating expenses were $0.02 mill
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