GigaMedia Announces Fourth-Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

GigaMedia (NASDAQ: GIGM) has released its Q4 and full-year 2024 financial results, reporting annual revenues of $3.0 million, down 30.8% from 2023. The company posted a gross profit of $1.5 million and a net loss of $2.3 million, improved from a $3.4 million loss in 2023.

The revenue decline was primarily attributed to slowdown in licensed games. However, the company maintained a strong financial position with $35.1 million in cash and equivalents at year-end, representing approximately $3.175 per share, with zero bank loans. The net asset value stood at $3.69 per share.

Looking ahead to 2025, GigaMedia plans to focus on developing AI-based creation tools for social media content and explore potential commercialization opportunities. The company also continues to seek strategic merger and acquisition opportunities to accelerate growth and enhance shareholder value.

Positive

• Strong cash position of $35.1 million with zero bank loans
• Improved net loss to $2.3M from $3.4M in 2023
• Healthy net asset value of $3.69 per share
• Successfully reduced operating costs and expenses in Q4

Negative

• Revenue declined 30.8% to $3.0M in 2024
• Operating loss increased to $3.7M from $3.2M in 2023
• Licensed games business experiencing significant slowdown
• Q4 2024 revenues decreased 13.2% year-over-year

Insights

Financial Analyst

GigaMedia's 2024 financial results reveal concerning revenue deterioration with full-year figures dropping 30.8% to just $3.0 million. This dramatic decline stems primarily from underperforming licensed games, creating a challenging operational environment that expanded operating losses to $3.7 million from $3.2 million in 2023.

Despite revenue challenges, there are notable positives in GigaMedia's financial position. The company managed to reduce its net loss to $2.3 million from $3.4 million year-over-year, improving loss per share to $0.21 from $0.31. Most significantly, GigaMedia maintains substantial liquidity with $35.1 million in cash and equivalents (approximately $3.175 per share) against zero debt, creating a notable disconnect between its $3.69 per share net asset value and current $1.76 market price.

The company's cost-cutting initiatives are showing mixed results - while Q4 operating losses improved quarter-over-quarter from $1.0 million to $0.5 million, this hasn't translated into sustainable revenue growth. GigaMedia's pivot toward AI-based tools for social media content creation represents a strategic shift that could potentially open new revenue streams, but remains speculative without concrete results. Meanwhile, management's stated interest in M&A could leverage their substantial cash position, but the continued decline in core business revenue creates urgency for meaningful strategic action beyond incremental improvements.

TAIPEI, March 28, 2025 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its unaudited financial results for the fourth quarter and full year of 2024.

Highlights

For 2024, GigaMedia reported revenues of $3.0 million, with a gross profit of $1.5 million, an operating loss of $3.7 million and the net loss of $2.3 million.

The revenues decreased by 30.8% in 2024, mainly as our licensed games experienced slowdown. Meanwhile, we have re-constructed player's ecosystem in our legacy casual games to maintain steady revenue streams and a healthier margin in them. In 2024, we continued rightsizing our workforce and consolidating resources to mitigate the impact of declined revenues. As a result, the operating loss were mildly increased, whereas the net loss was reduced to $2.3 million, compared to a net loss of $3.4 million in 2023.

On the balance sheet side, we maintained a solid financial position with a small cash burn rate in 2024, and our cash, cash equivalents and restricted cash amounted to $35.1 million at the end of 2024.

In 2024, we have been establishing AI-competence in our product developing settings. We believe achieving sophistication in AI is very crucial in boosting our productivity and accelerate the growth of our business.

Fourth Quarter and Full Year Overview

• Consolidated 4Q revenues decreased slightly by 1.8% quarter-on-quarter , and by 13.2% year-over-year due to certain licensed games declined. Full year revenues decreased by 30.8% to $3.0 million from $4.3 million in 2023.
  
  
• Loss from operations for 4Q was $0.5 million, representing a loss reduction from $1.0 million in the third quarter in 2024, as we managed to reduce the operating costs and expenses. Full year operating loss was $3.7 million, increased from $3.2 million in 2023.
  
  
• The net asset value was approximately $3.69 per share as of the end of 2024.

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 mobile games and casual games.

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

For the Full Year 2024

GIGAMEDIA FY24 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)		FY24				FY23				Change (%)
Revenues			2,969				4,292				-30.8	%
Gross Profit			1,475				2,446				-39.7	%
Loss from Operations			(3,701)				(3,155)			NM
Net Loss Attributable to GigaMedia			(2,315)				(3,399)			NM
Net Loss Per Share Attributable to GigaMedia, Diluted			(0.21)				(0.31)			NM
EBITDA (A)			(4,219)				(5,155)			NM
Cash, Cash Equivalents and Restricted Cash			35,094				38,783				-9.5	%

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.) 

• Consolidated revenues for the year ended December 31, 2024 was $3.0 million, decreased from $4.3 million in the prior year. The decrease was mainly as revenues from certain licensed games declined.
  
  
• Consolidated loss from operations for 2024 was $3.7 million, compared to a loss of $3.2 million in the last year. The increase of loss was mainly due to the decline of revenues.
  
  
• Consolidated net loss for 2024 was $2.3 million, decreased from $3.4 million in the prior year. Loss per share for 2024 was $0.21 per share, compared to $0.31 last year.
  
  
• Cash, cash equivalents and restricted cash at the year end of 2024 amounted to $35.1 million.

For the Fourth Quarter

GIGAMEDIA 4Q24 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)		4Q24				3Q24				Change (%)				4Q24				4Q23				Change (%)
Revenues			755				769				-1.8	%			755				870				-13.2	%
Gross Profit			398				372				7.0	%			398				504				-21.0	%
Loss from Operations			(531)				(1,008)			NM					(531)				(645)			NM
Net Loss Attributable to GigaMedia			(481)				(320)			NM					(481)				(2,018)			NM
Net Loss Per Share Attributable to GigaMedia, Diluted			(0.04)				(0.03)			NM					(0.04)				(0.18)			NM
EBITDA (A)			(937)				(810)			NM					(937)				(2,522)			NM
Cash, Cash Equivalents and Restricted Cash			35,094				35,328				-0.7	%			35,094				38,783				-9.5	%

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.) 

Fourth-Quarter Financial Results

• Consolidated revenues for the fourth quarter of 2024 decreased slightly by 1.8% quarter-on-quarter, and decreased by 13.2% year-over-year mainly as revenues from licensed games declined.
  
  
• Consolidated loss from operations of the fourth quarter of 2024 was $0.5 million, compare to a loss of $1.0 million in the last quarter.
  
  
• Consolidated net loss of the fourth quarter of 2024 was $0.5 million, increased from a net loss of $0.3 million in the last quarter, mainly due to a valuation loss of $0.2 million in investments.
  
  
• Cash, cash equivalents and restricted cash at the end of the fourth quarter of 2024 amounted to $35.1 million, slightly decreased from the prior quarter.

Financial Position

GigaMedia maintained its solid financial position. Cash, cash equivalents and restricted cash amounted to $35.1 million, or approximately $3.175 per share, along with zero bank loan. Our shareholders' equity was approximately $40.8 million of as of December 31, 2024.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of March 28, 2025. Given potential changes in economic conditions and consumer spending, the evolving nature of digital entertainments, and various other risk factors, including those discussed in the Company's 2023 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

In 2025, we will be devoted in developing AI-based creation applet for producing well-featured personal social media materials. Besides in-house application, we will also explore potentials for the related tools to become a commercialized solution of platform for publishing AI-assisted creation of products.

Meanwhile, our business strategies always include expanding through mergers and acquisitions. "We will actively pursue suitable strategic opportunities that would enable us to accelerate our growth and enhance shareholders' value," stated CEO James Huang.

Use of Non-GAAP Measures

To supplement GigaMedia's consolidated financial statements presented in accordance with U.S. GAAP, the Company uses the following measure defined as non-GAAP by the SEC: EBITDA. Management believes that EBITDA (earnings before interest, taxes, depreciation, and amortization) is a useful supplemental measure of performance because it excludes certain non-cash items such as depreciation and amortization and that EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. EBITDA is not a recognized earnings measure under GAAP and does not have a standardized meaning. Non-GAAP measures such as EBITDA should be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, other financial measures prepared in accordance with GAAP. A limitation of using EBITDA is that it does not include all items that impact the Company's net income for the period. Reconciliations to the GAAP equivalents of the non-GAAP financial measures are provided on the attached unaudited financial statements.

About the Numbers in This Release

Unaudited results

All quarterly and certain annual 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 U.S. GAAP, unless otherwise noted as "non-GAAP," and are presented in U.S. dollars.

Q&A

For Q&A regarding the fourth quarter and full year 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 Taipei, Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is a diversified provider of digital entertainment services in Taiwan and Hong Kong. GigaMedia's digital entertainment service business is an innovative leader in Asia with growing capabilities of development, distribution and operation of digital entertainments, as well as platform services for games with a focus on mobile games and casual games. More information on GigaMedia can be obtained from www.gigamedia.com.tw.  

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 digital entertainment products or services that are appealing to users, our ability to retain existing users and attract new users, and our ability to launch digital entertainment products and services 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 April  2024 and its other filings with the United States Securities and Exchange Commission.

(Tables to follow)

 

GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands of US dollars, except for earnings per share amounts)
		Three months ended												Twelve months ended
		2024/12/31				2024/9/30				2023/12/31				2024/12/31				2023/12/31
		unaudited				unaudited				unaudited				unaudited				audited
Operating revenues
Digital entertainment service revenues			755				769				870				2,969				4,292
			755				769				870				2,969				4,292
Operating costs
Cost of Digital entertainment service revenues			357				397				366				1,494				1,846
			357				397				366				1,494				1,846
Gross profit			398				372				504				1,475				2,446
Operating expenses
Product development and engineering expenses			164				170				179				694				729
Selling and marketing expenses			351				375				344				1,451				1,623
General and administrative expenses and others			414				835				626				3,030				3,242
Other			—				—				—				1				7
			929				1,380				1,149				5,176				5,601
Loss from operations			(531)				(1,008)				(645)				(3,701)				(3,155)
Non-operating income (expense)
Interest income			471				504				518				1,963				1,811
Foreign exchange gain (loss) - net			(246)				182				339				(427)				(34)
Gain on disposal of investments			—				—				(1)				—				76
Changes in the fair value of investment in equity securities recognized at fair value			(186)				(6)				(2,229)				(179)				(2,110)
Other - net			11				8				—				29				13
			50				688				(1,373)				1,386				(244)
Loss before income taxes			(481)				(320)				(2,018)				(2,315)				(3,399)
Income tax expense			—				—				—				—				—
Net loss attributable to shareholders of GigaMedia			(481)				(320)				(2,018)				(2,315)				(3,399)
Loss per share attributable to GigaMedia
Basic:			(0.04)				(0.03)				(0.18)				(0.21)				(0.31)
Diluted:			(0.04)				(0.03)				(0.18)				(0.21)				(0.31)
Weighted average shares outstanding:
Basic			11,052				11,052				11,052				11,052				11,052
Diluted			11,052				11,052				11,052				11,052				11,052

 

GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
(in thousands of US dollars)
		2024/12/31				2024/9/30				2023/12/31
		unaudited				unaudited				audited
Assets
Current assets
Cash and cash equivalents			34,781				35,015				38,470
Marketable securities - current			—				—				—
Accounts receivable - net			141				157				227
Prepaid expenses			69				123				54
Restricted cash			313				313				313
Other receivables			2				392				2
Other current assets			127				144				141
Total current assets			35,433				36,144				39,207
Marketable securities - noncurrent			5,855				6,840				5,777
Property, plant & equipment - net			101				102				111
Intangible assets - net			7				5				13
Prepaid licensing and royalty fees			147				179				24
Other assets			1,229				1,244				1,365
Total assets			42,772				44,514				46,497
Liabilities and equity
Accounts payable			38				27				44
Accrued compensation			174				350				396
Accrued expenses			571				912				786
Unearned revenue			578				608				573
Other current liabilities			570				691				665
Total current liabilities			1,931				2,588				2,464
Other liabilities			84				154				495
Total liabilities			2,015				2,742				2,959
Total equity			40,757				41,772				43,538
Total liabilities and equity			42,772				44,514				46,497

 

GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
(in thousands of US dollars)
		Three months ended												Twelve months ended
		2024/12/31				2024/9/30				2023/12/31				2024/12/31				2023/12/31
		unaudited				unaudited				unaudited				unaudited				unaudited
Reconciliation of Net Income (Loss) to EBITDA
Net loss attributable to GigaMedia			(481)				(320)				(2,018)				(2,315)				(3,399)
Depreciation			13				12				11				49				43
Amortization			2				2				3				10				12
Interest income			(471)				(504)				(518)				(1,963)				(1,811)
Interest expense			—				—				—				—				—
Income tax expense			—				—				—				—				—
EBITDA			(937)				(810)				(2,522)				(4,219)				(5,155)

 

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SOURCE GigaMedia

FAQ

What caused GigaMedia (GIGM) revenue decline in 2024?

GigaMedia's revenue declined 30.8% in 2024 primarily due to slowdown in licensed games performance.

How much cash does GIGM have on its balance sheet at the end of 2024?

GigaMedia had $35.1 million in cash, cash equivalents and restricted cash as of December 31, 2024.

What is GigaMedia's (GIGM) strategic focus for 2025?

GigaMedia plans to develop AI-based creation tools for social media content and pursue strategic M&A opportunities.

How did GIGM's net loss change from 2023 to 2024?

GigaMedia's net loss improved to $2.3 million in 2024 from $3.4 million in 2023.

What is GigaMedia's (GIGM) net asset value per share in 2024?

GigaMedia's net asset value was approximately $3.69 per share at the end of 2024.