GigaMedia Announces Second-Quarter 2024 Financial Results
GigaMedia (NASDAQ: GIGM) announced its Q2 2024 unaudited financial results. The company reported revenues of $0.72 million, a gross profit of $0.36 million, an operating loss of $1.05 million, and a net loss of $0.61 million. While revenues slightly decreased by 0.6% quarter-on-quarter and 29.7% year-over-year, gross profit increased by 4.0% from the previous quarter. The net loss decreased from $0.90 million in Q1 to $0.61 million in Q2.
GigaMedia's net asset value was $3.82 per share. The company maintained a solid financial position with cash, cash equivalents, and restricted cash amounting to $36.3 million, or $3.29 per share, as of June 30, 2024. The company is currently focusing on fine-tuning its casual games and customer platform for the upcoming summer vacation.
GigaMedia (NASDAQ: GIGM) ha annunciato i risultati finanziari non verificati per il secondo trimestre del 2024. L'azienda ha riportato ricavi di 0,72 milioni di dollari, un utile lordo di 0,36 milioni di dollari, una perdita operativa di 1,05 milioni di dollari e una perdita netta di 0,61 milioni di dollari. Anche se i ricavi sono diminuiti leggermente dello 0,6% rispetto al trimestre precedente e del 29,7% rispetto all'anno precedente, l'utile lordo è aumentato del 4,0% rispetto al trimestre precedente. La perdita netta è scesa da 0,90 milioni di dollari nel primo trimestre a 0,61 milioni di dollari nel secondo trimestre.
Il valore patrimoniale netto di GigaMedia era di 3,82 dollari per azione. L'azienda ha mantenuto una solida posizione finanziaria, con liquidità, equivalenti di liquidità e liquidità vincolata per un totale di 36,3 milioni di dollari, ovvero 3,29 dollari per azione, al 30 giugno 2024. Attualmente, l'azienda si sta concentrando sulla messa a punto dei suoi giochi casual e della piattaforma per i clienti in vista delle prossime vacanze estive.
GigaMedia (NASDAQ: GIGM) anunció sus resultados financieros no auditados para el segundo trimestre de 2024. La empresa reportó ingresos de 0,72 millones de dólares, una ganancia bruta de 0,36 millones de dólares, una pérdida operativa de 1,05 millones de dólares y una pérdida neta de 0,61 millones de dólares. Aunque los ingresos disminuyeron ligeramente en un 0,6% en comparación con el trimestre anterior y un 29,7% en comparación con el año anterior, la ganancia bruta aumentó un 4,0% respecto al trimestre anterior. La pérdida neta se redujo de 0,90 millones de dólares en el primer trimestre a 0,61 millones de dólares en el segundo trimestre.
El valor neto de los activos de GigaMedia era de 3,82 dólares por acción. La empresa mantuvo una sólida posición financiera, con efectivo, equivalentes de efectivo y efectivo restringido por un total de 36,3 millones de dólares, o 3,29 dólares por acción, al 30 de junio de 2024. Actualmente, la empresa se está enfocando en afinar sus juegos casuales y su plataforma para clientes de cara a las próximas vacaciones de verano.
기가미디어(GigaMedia) (NASDAQ: GIGM)는 2024년 2분기 감사 전 재무 결과를 발표했습니다. 이 회사는 72만 달러의 수익, 36만 달러의 총 이익, 105만 달러의 영업 손실 및 61만 달러의 순 손실을 보고했습니다. 수익은 전 분기 대비 0.6% 및 전년 대비 29.7% 감소했지만, 총 이익은 전 분기보다 4.0% 증가했습니다. 순 손실은 1분기 90만 달러에서 2분기 61만 달러로 감소했습니다.
기가미디어의 순 자산 가치는 주당 3.82달러였습니다. 이 회사는 2024년 6월 30일 기준으로 현금, 현금성 자산 및 제한된 현금이 총 3630만 달러 또는 주당 3.29달러로 실적을 유지하며 강력한 재무 상태를 유지하고 있습니다. 현재 회사는 다가오는 여름 휴가를 위해 캐주얼 게임과 고객 플랫폼을 조정하는 데 집중하고 있습니다.
GigaMedia (NASDAQ: GIGM) a annoncé ses résultats financiers non audités pour le deuxième trimestre de 2024. La société a rapporté des revenus de 0,72 million de dollars, un bénéfice brut de 0,36 million de dollars, une perte d'exploitation de 1,05 million de dollars et une perte nette de 0,61 million de dollars. Bien que les revenus aient légèrement diminué de 0,6 % par rapport au trimestre précédent et de 29,7 % par rapport à l'année précédente, le bénéfice brut a augmenté de 4,0 % par rapport au trimestre précédent. La perte nette est passée de 0,90 million de dollars au premier trimestre à 0,61 million de dollars au deuxième trimestre.
La valeur nette des actifs de GigaMedia était de 3,82 dollars par action. L'entreprise a maintenu une solide position financière avec des liquidités, des équivalents de liquidités et des liquidités restreintes s'élevant à 36,3 millions de dollars, soit 3,29 dollars par action, au 30 juin 2024. L'entreprise se concentre actuellement sur le perfectionnement de ses jeux casual et de sa plateforme client en vue des prochaines vacances d'été.
GigaMedia (NASDAQ: GIGM) hat seine ungeprüften Finanzzahlen für das 2. Quartal 2024 bekannt gegeben. Das Unternehmen berichtete von Einnahmen in Höhe von 0,72 Millionen Dollar, einem Bruttogewinn von 0,36 Millionen Dollar, einem operativen Verlust von 1,05 Millionen Dollar und einem Nettoverlust von 0,61 Millionen Dollar. Während die Einnahmen im Vergleich zum Vorquartal um 0,6 % und im Vergleich zum Vorjahr um 29,7 % leicht gesunken sind, stieg der Bruttogewinn im Vergleich zum vorherigen Quartal um 4,0 %. Der Nettoverlust verringerte sich von 0,90 Millionen Dollar im 1. Quartal auf 0,61 Millionen Dollar im 2. Quartal.
Der Nettovermögenswert von GigaMedia betrug 3,82 Dollar pro Aktie. Das Unternehmen hielt eine solide Finanzlage mit liquiden Mitteln, liquiden Mitteln gleichgestellten Mitteln und eingeschränkt verfügbaren Mitteln in Höhe von insgesamt 36,3 Millionen Dollar, oder 3,29 Dollar pro Aktie, zum 30. Juni 2024. Das Unternehmen konzentriert sich derzeit darauf, seine Casual Games und Kundenplattform für die bevorstehenden Sommerferien zu optimieren.
- Gross profit increased by 4.0% quarter-on-quarter to $0.36 million
- Net loss decreased from $0.90 million in Q1 to $0.61 million in Q2
- Solid financial position with $36.3 million in cash and equivalents
- Revenues decreased by 29.7% year-over-year to $0.72 million
- Operating loss of $1.05 million in Q2 2024
- Net loss of $0.61 million in Q2 2024
Insights
GigaMedia's Q2 2024 results paint a mixed picture, with some improvements quarter-over-quarter but continued year-over-year declines. The company's revenue of
On a positive note, gross profit saw a
The reduction in net loss from
GigaMedia's balance sheet remains strong, with
The company's focus on "fine-tuning" operations for the summer vacation period could be crucial. Given the seasonal nature of the gaming industry, successful execution during this peak period could help reverse the negative revenue trend.
Key takeaway: While GigaMedia shows some signs of operational improvement, the company needs to address its declining revenue to achieve sustainable profitability. The strong cash position provides time for strategic pivots, but investors should watch closely for signs of revenue growth in upcoming quarters.
GigaMedia's Q2 2024 results reflect broader challenges in the casual gaming market, particularly in Taiwan and Hong Kong. The
The company's focus on browser and mobile casual games puts it in a highly competitive space. With giants like Tencent and NetEase dominating the Asian gaming market, smaller players like GigaMedia face an uphill battle for market share. The company's strategy of "fine-tuning" operations for the summer vacation period is important but may not be sufficient to drive substantial growth.
GigaMedia's net asset value of
- Skepticism about the company's ability to turn around its core business
- Potential for activist investor interest, given the significant cash reserves
- Opportunities for strategic pivots or acquisitions to utilize the cash effectively
The gaming market in Asia remains robust, with mobile gaming continuing to grow. However, GigaMedia's inability to capitalize on this trend is concerning. The company may need to consider more drastic measures, such as exploring emerging technologies (e.g., AI-driven gaming experiences) or potential M&A activities to remain relevant in the evolving digital entertainment landscape.
Market outlook: While the broader gaming market in Asia shows promise, GigaMedia's position within it appears precarious. The company's ability to innovate and differentiate its offerings will be critical in reversing the current downward trend.
Comments from Management
In the second quarter of 2024, GigaMedia reported revenues of
While the revenues were comparable to those in the first quarter 2024, both our gross profit and loss from operations were improved, and the net loss was slashed by
Currently we focused on fine-tuning the operation of our casual games and customer platform for upcoming summer vacation.
Second Quarter Overview
- Operating revenues slightly decreased by approximately
0.6% quarter-on-quarter, to$0.72 million 29.7% year-over-year from$1.03 million - Gross profit increased by
4.0% to$0.36 million $0.35 million 36.4% compared to$0.57 million - The net asset value was
$3.82
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia's digital entertainment service business FunTown develops and operates a suite of digital entertainments in
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Second Quarter
GIGAMEDIA 2Q24 UNAUDITED CONSOLIDATED FINANCIAL RESULTS | ||||||||||||||||||||||||
(unaudited, all figures in US$ thousands, except per share amounts) | 2Q24 | 1Q24 | Change | 2Q24 | 2Q23 | Change | ||||||||||||||||||
Revenues | 721 | 725 | (0.6) % | 721 | 1,025 | (29.7) % | ||||||||||||||||||
Gross Profit | 360 | 346 | 4.0 % | 360 | 566 | (36.4 | ||||||||||||||||||
Loss from Operations | (1,048) | (1,114) | NM | (1,048) | (920) | NM | ||||||||||||||||||
Net Loss Attributable to GigaMedia | (612) | (902) | NM | (612) | (562) | NM | ||||||||||||||||||
Loss Per Share Attributable to GigaMedia, Diluted | (0.06) | (0.08) | NM | (0.06) | (0.05) | NM | ||||||||||||||||||
EBITDA (A) | (1,116) | (1,358) | NM | (1,116) | (983) | NM | ||||||||||||||||||
Cash, Cash Equivalents and Restricted Cash | 36,343 | 36,815 | (1.3) % | 36,343 | 37,775 | (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 |
Second-Quarter Financial Results
- Consolidated revenues for the second quarter of 2024 slightly decreased by
0.6% quarter-on-quarter to$0.72 million 29.7% year-over-year from$1.02 million - Consolidated gross profit was
$0.36 million 4.0% quarter-on-quarter but decreased by36.4% year-over-year. - Consolidated loss from operation of the second quarter of 2024 was a loss of
$1.05 million $1.11 - Net loss in the second quarter of 2024 was
$0.61 million $0.90 million - Cash, cash equivalents and restricted cash at the end of the second quarter of 2024 amounted to
$36.3 million 1.3% from$36.8 million
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounted to
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of July 31, 2024. 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
"In the second half of 2024, we will dedicate ourselves to boosting the productivity of our products and services. GigaMedia will stick to the strategy of pursuing healthy growth with a lean operation while seeking for strategic expansion and new business," stated GigaMedia CEO James Huang.
As for new business, our management continues evaluating and pursuing prospects of strategic investment targets that are with potential to expand our business and create greater shareholder value.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements presented in accordance with US 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
Quarterly results
All quarterly 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
Q&A
For Q&A regarding the second quarter 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
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 online games that are appealing to users, our ability to retain existing online game players and attract new players, and our ability to launch online games 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
Three months ended | Six months ended | |||||||||||||||||||
6/30/2024 | 3/31/2024 | 6/30/2023 | 6/30/2024 | 6/30/2023 | ||||||||||||||||
unaudited | unaudited | unaudited | unaudited | unaudited | ||||||||||||||||
USD | USD | USD | USD | USD | ||||||||||||||||
Operating revenues | ||||||||||||||||||||
Digital entertainment service revenues | 721 | 725 | 1,025 | 1,445 | 2,350 | |||||||||||||||
721 | 725 | 1,025 | 1,445 | 2,350 | ||||||||||||||||
Operating costs | ||||||||||||||||||||
Cost of digital entertainment service revenues | 361 | 379 | 459 | 741 | 991 | |||||||||||||||
361 | 379 | 459 | 741 | 991 | ||||||||||||||||
Gross profit | 360 | 346 | 566 | 704 | 1,359 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Product development and engineering expenses | 175 | 185 | 188 | 360 | 367 | |||||||||||||||
Selling and marketing expenses | 348 | 378 | 407 | 726 | 838 | |||||||||||||||
General and administrative expenses | 885 | 896 | 891 | 1,781 | 1,770 | |||||||||||||||
Other | — | 1 | — | 1 | 1 | |||||||||||||||
1,408 | 1,460 | 1,486 | 2,868 | 2,976 | ||||||||||||||||
Loss from operations | (1,048) | (1,114) | (920) | (2,164) | (1,617) | |||||||||||||||
Non-operating income (expense) | ||||||||||||||||||||
Interest income | 518 | 471 | 435 | 989 | 840 | |||||||||||||||
Foreign exchange loss - net | (87) | (276) | (136) | (362) | (137) | |||||||||||||||
Changes in the fair value of an instrument recognized at fair value | 3 | 9 | 52 | 13 | 33 | |||||||||||||||
Other-net | 2 | 8 | 7 | 10 | 7 | |||||||||||||||
436 | 212 | 358 | 650 | 743 | ||||||||||||||||
Loss from continuing operations before income taxes | (612) | (902) | (562) | (1,514) | (874) | |||||||||||||||
Income tax expense | — | — | — | — | — | |||||||||||||||
Net loss attributable to shareholders of GigaMedia | (612) | (902) | (562) | (1,514) | (874) | |||||||||||||||
Loss per share attributable to GigaMedia: | ||||||||||||||||||||
Basic | (0.06) | (0.08) | (0.05) | (0.14) | (0.08) | |||||||||||||||
Diluted | (0.06) | (0.08) | (0.05) | (0.14) | (0.08) | |||||||||||||||
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 SHEET
6/30/2024 | 3/31/2024 | 6/30/2023 | ||||||||||
unaudited | unaudited | unaudited | ||||||||||
USD | USD | USD | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 36,030 | 36,502 | 37,462 | |||||||||
Investment in securities-current | — | — | 7,950 | |||||||||
Accounts receivable - net | 198 | 239 | 187 | |||||||||
Prepaid expenses | 226 | 374 | 225 | |||||||||
Restricted cash | 313 | 313 | 313 | |||||||||
Other receivables | 496 | 371 | 766 | |||||||||
Other current assets | 142 | 138 | 119 | |||||||||
Total current assets | 37,405 | 37,937 | 47,022 | |||||||||
Investment in securities - noncurrent | 5,819 | 5,798 | 2,371 | |||||||||
Property, plant & equipment - net | 109 | 112 | 132 | |||||||||
Intangible assets - net | 8 | 10 | 13 | |||||||||
Prepaid licensing and royalty fees | 215 | 251 | 102 | |||||||||
Other assets | 1,264 | 1,322 | 1,510 | |||||||||
Total assets | 44,820 | 45,430 | 51,150 | |||||||||
Liabilities and equity | ||||||||||||
Accounts payable | 23 | 23 | 29 | |||||||||
Accrued compensation | 250 | 157 | 231 | |||||||||
Accrued expenses | 778 | 784 | 855 | |||||||||
Unearned revenue | 565 | 579 | 848 | |||||||||
Other current liabilities | 686 | 688 | 718 | |||||||||
Total current liabilities | 2,302 | 2,231 | 2,681 | |||||||||
Other liabilities | 254 | 379 | 714 | |||||||||
Total liabilities | 2,556 | 2,610 | 3,395 | |||||||||
Total equity | 42,264 | 42,820 | 47,755 | |||||||||
Total liabilities and equity | 44,820 | 45,430 | 51,150 | |||||||||
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
Three months ended | Six months ended | |||||||||||||||||||
6/30/2024 | 3/31/2024 | 6/30/2023 | 6/30/2024 | 6/30/2023 | ||||||||||||||||
unaudited | unaudited | unaudited | unaudited | unaudited | ||||||||||||||||
USD | USD | USD | USD | USD | ||||||||||||||||
Reconciliation of Net Loss to EBITDA | ||||||||||||||||||||
Net loss attributable to GigaMedia | (612) | (902) | (562) | (1,514) | (874) | |||||||||||||||
Depreciation | 12 | 12 | 11 | 24 | 22 | |||||||||||||||
Amortization | 2 | 3 | 3 | 5 | 6 | |||||||||||||||
Interest income | (518) | (471) | (435) | (989) | (840) | |||||||||||||||
Interest expense | — | — | — | — | — | |||||||||||||||
Income tax expense | — | — | — | — | — | |||||||||||||||
EBITDA | (1,116) | (1,358) | (983) | (2,474) | (1,686) | |||||||||||||||
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SOURCE GigaMedia
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