Market Overview

GigaMedia Announces First-Quarter 2019 Financial Results

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TAIPEI, Taiwan, May 2, 2019 /PRNewswire/ -- GigaMedia Limited (NASDAQ:GIGM) today announced its first-quarter 2019 unaudited financial results.

Comments from Management

In the first quarter of 2019, we continued our streamlined operations of licensed games while growing and developing our own offerings. In spite of an 8.4% decrease in revenues during this quarter, operating loss maintained at approximately $0.9 million, comparable to the previous quarter.

"The strategy we have adopted since 2018," said Giga GigaMedia CEO James Huang, "is making a difference. By trimming off or terminating underperforming products or services and selectively introducing new ones, an improved allocation of resources now delivers a more solid productivity and opens up possibilities for exploring a long-term growth path."

We prepared for in the first quarter, and launched in early the second quarter of 2019, Senran Kagura: New Link, a licensed card battle game. It is one of the popular Senran Kagura series that is developed by a subsidiary of Marvelous Inc., a Japanese game developer. By targeting a niche audience that loves the series, this game is well received. While we have just launched it and are still fine-tuning the operations, based on the initial results, we are very optimistic about its contribution to our following quarters.

Meanwhile, we were also making progress in renovating and developing our offerings, as well as building up an advanced framework for promoting customer relationships. We believe the cultivation of a loyal customer base on our own offerings will eventually further boost customer value and create revenues and profits

First Quarter Overview

  • Operating revenue decreased by $0.1 million or 8.4% in quarter-on-quarter comparison, and decreased by 0.7 million or 31.3% in year- over -year comparison.
  • Loss from operations amounted to approximately $0.9 million and net loss approximatley $0.5 million, comparable to the fourth quarter of 2018 and slightly improved when compared with the same quarter last year.

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 First Quarter

GIGAMEDIA 1Q19 UNAUDITED CONSOLIDATED FINANCIAL RESULTS


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


1Q19



4Q18



Change

(%)



1Q19



1Q18



Change

(%)


Revenues



1,483




1,619




(8.4)

%



1,483




2,160




(31.3)

%

Gross Profit



738




880




(16.1)

%



738




1,214




(39.2)

%

Loss from Operations



(949)




(1,021)



NM




(949)




(975)



NM


Net Loss Attributable to GigaMedia



(532)




(503)



NM




(532)




(853)



NM


Net Loss Per Share Attributable to GigaMedia, Diluted



(0.05)




(0.05)



NM




(0.05)




(0.08)



NM


EBITDA (A)



(876)




(806)



NM




(876)




(1,104)



NM


Cash and Restricted Cash and Cash Equivalents



58,494




59,826




(2.2)

%


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