Market Overview

GigaMedia Announces Second-Quarter 2019 Financial Results

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

Comments from Management

In the first half of year 2019, we continued devoting efforts to optimizing our product portfolio, building up brand strength and enhancing operational efficiency. For our business in licensed games, the successful launch of Senran Kagura: New Link in April has brought us a satisfactory amount of revenues in its introductory stage, while two underperforming games were terminated.

For in-house offerings, besides improving the existing self-developed games, we also have made progress in developing a new casual games platform, aiming to launch it in the second half of 2019. "As discussed in previous release guidance, we put emphasis on enhancing our in-house products. The direct investment into in-house product development was over $600 thousand in the first half of 2019, which was 9.5% higher than in the same period last year," said GigaMedia CEO James Huang.

We were also developing a customer platform, which will contribute to our operations in establishing relationships, saving marketing costs, and creating capacity for providing augmented products and services. "The customer platform is currently under small-scale test-run, but we believe the growing interaction of the customer platform and our wide range of diverse game offerings will generate synergistic effect for one another in the future," said CEO James Huang.

"The numbers might look similar as in prior quarters," stated CEO James Huang, "but the robustness is now exhibited in our operations, and momentums have gradually accumulated."

Second Quarter Overview

  • Operating revenues increased by approximately 18% quarter-on-quarter, to $1.8 million from $1.5 million last quarter, and 5.49% year-over-year from $1.7 million the same period last year. The increase was mainly attributable to Senran Kagura, a new game launched in April.
  • Gross profit increased slightly to $0.8 million from $0.7 million in the first quarter of 2019.
  • The net asset value was $5.15 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 browser/mobile games and casual games.

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

For the Second Quarter

GIGAMEDIA 2Q19 UNAUDITED CONSOLIDATED FINANCIAL RESULTS


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


2Q19


1Q19


Change

(%)



2Q19


2Q18


Change

(%)


Revenues


1,750


1,483


18.00

%


1,750


1,659


5.49

%

Gross Profit


769


738


4.20

%


769


728


5.63

%

Loss from Operations


(1,122)


(949)


NM



(1,122)


(1,342)


NM


Net Loss Attributable to GigaMedia


(614)


(532)


NM



(614)


(755)


NM


Net Loss Per Share Attributable to
GigaMedia, Diluted


(0.06)


(0.05)


NM



 

(0.06)


 

(0.07)


NM


EBITDA (A)


(1,000)


(876)


NM



(1,000)


(1,056)


NM


Cash, Restricted Cash and Cash
Equivalents


58,015


 

58,494


-0.82

%


 

58,015


 

61,244


 

-5.27

%
















NM= Not Meaningful





















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