Market Overview

GigaMedia Announces Third-Quarter 2019 Financial Results

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TAIPEI, Oct. 31, 2019 /PRNewswire/ -- GigaMedia Limited (NASDAQ:GIGM) today announced its third-quarter 2019 unaudited financial results.

Comments from Management

In the third quarter of 2019, total revenues increased by 9.0% to approximately $1.91 million, from $1.75 million last quarter. While the increase of revenues was mainly due to seasonalities exhibited in certain games for summer peak and anniversary promotions, the overall gross margin widened to 55.0%, compared to 44.0% in last quarter and 41.8% in the same quarter last year, as a result of an improved cost structure.

And we were also making progress in developing in-house offerings, among which a new casual game platform will be released to the closed and then open beta testing tracks in the next quarter.

"During past quarters in 2019, besides pursuing an internally-driven growth by developing our own offerings, we continued improving the cost structure of our licensed game operations, as well as calibrating our marketing and promotional strategies for better effectiveness," said GigaMedia CEO James Huang, "and the efforts now gradually began to bear fruits."

Third Quarter Overview

  • Revenues increased approximately by 9.0% quarter-on-quarter to $1.91 million from $1.75 million in the second quarter of this year, and by 14.8% year-over-year from $1.66 million in the same period last year.
  • Gross profit increased to $1.05 million from $0.77 million in the second quarter of 2019.
  • Net loss reduced considerably to $0.24 million from $0.61 million in last quarter, and from $1.08 million in the same period last year.
  • The net asset value was around $5.13 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 third Quarter

GIGAMEDIA3Q19 UNAUDITED CONSOLIDATED FINANCIAL RESULTS


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


3Q19


2Q19



Change

(%)



3Q19


3Q18


Change

(%)


Revenues



1,908



1,750



9.0

%



1,908



1,662


14.8

%

Gross Profit



1,049



769



36.4

%



1,049



694


51.2

%

Loss from Operations



(544)



(1,122)



NM




(544)



(1,484)


NM


Net Loss Attributable to GigaMedia



(242)



(614)



NM




(242)



(1,083)


NM


Loss Per Share Attributable to GigaMedia, Diluted



(0.02)



(0.06)



NM




(0.02)



(0.10)


NM


EBITDA (A)



(585)



(1,000)



NM




(585)



(1,393)


NM


CashRestricted Cash and Cash Equivalents



58,164



58,015



0.3

%



58,164



60,439


-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 U.S. generally accepted accounting principles ("GAAP"). (See, "Use of Non-GAAP Measures," for more details.) 

Third-Quarter Financial Results

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