GigaMedia Announces Third-Quarter 2024 Financial Results
GigaMedia (NASDAQ: GIGM) reported its Q3 2024 financial results, showing mixed performance. Revenues increased 6.7% quarter-over-quarter to $0.77 million, with gross profit up 3.3% to $0.37 million. However, the company recorded an operating loss of $1.01 million and a net loss of $0.32 million. Year-over-year, revenues declined 28.2% from $1.07 million. The company maintains a strong financial position with $35.3 million in cash and equivalents, representing $3.20 per share. Management plans to enhance social networking features in their games to promote player community and strengthen game stickiness.
GigaMedia (NASDAQ: GIGM) ha riportato i risultati finanziari per il terzo trimestre del 2024, mostrando prestazioni miste. I ricavi sono aumentati del 6.7% rispetto al trimestre precedente, raggiungendo $0.77 milioni, con un profitto lordo in crescita del 3.3%, a $0.37 milioni. Tuttavia, la società ha registrato una perdita operativa di $1.01 milioni e una perdita netta di $0.32 milioni. Rispetto all'anno precedente, i ricavi sono diminuiti del 28.2%, rispetto a $1.07 milioni. L'azienda mantiene una solida posizione finanziaria con $35.3 milioni in contante e equivalenti, pari a $3.20 per azione. La direzione prevede di migliorare le funzionalità di social networking nei loro giochi per promuovere la comunità di giocatori e rafforzare la fidelizzazione al gioco.
GigaMedia (NASDAQ: GIGM) informó sus resultados financieros del tercer trimestre de 2024, mostrando un desempeño mixto. Los ingresos aumentaron un 6.7% con respecto al trimestre anterior, alcanzando $0.77 millones, mientras que la ganancia bruta subió un 3.3%, alcanzando $0.37 millones. Sin embargo, la empresa registró una pérdida operativa de $1.01 millones y una pérdida neta de $0.32 millones. Año tras año, los ingresos disminuyeron un 28.2%, desde $1.07 millones. La compañía mantiene una sólida posición financiera con $35.3 millones en efectivo y equivalentes, lo que representa $3.20 por acción. La dirección planea mejorar las características de redes sociales en sus juegos para promover la comunidad de jugadores y fortalecer la retención en sus juegos.
기가미디어(GigaMedia) (NASDAQ: GIGM)는 2024년 3분기 재무 결과를 발표하며 혼합된 성과를 보였습니다. 매출은 전분기 대비 6.7% 증가하여 $0.77백만에 달했으며, 매출 총이익도 3.3% 증가하여 $0.37백만에 도달했습니다. 그러나 회사는 $1.01백만의 운영 손실과 $0.32백만의 순손실을 기록했습니다. 전년도 대비 매출은 $1.07백만에서 28.2% 감소했습니다. 회사는 $35.3백만의 현금 및 현금성 자산을 보유하고 있어 주당 $3.20를 나타내며 강한 재무 상태를 유지하고 있습니다. 경영진은 플레이어 커뮤니티를 촉진하고 게임의 몰입도를 강화하기 위해 게임의 소셜 네트워킹 기능을 향상시킬 계획입니다.
GigaMedia (NASDAQ: GIGM) a communiqué ses résultats financiers pour le troisième trimestre de 2024, montrant des performances mixtes. Les revenus ont augmenté de 6,7 % par rapport au trimestre précédent, atteignant $0,77 million, avec un bénéfice brut en hausse de 3,3 % à $0,37 million. Cependant, la société a enregistré une perte d'exploitation de $1,01 million et une perte nette de $0,32 million. En glissement annuel, les revenus ont diminué de 28,2 % par rapport à $1,07 million. L'entreprise maintient une solide position financière avec $35,3 millions en liquidités et équivalents, représentant $3,20 par action. La direction prévoit d'améliorer les fonctionnalités de réseautage social dans leurs jeux pour promouvoir la communauté des joueurs et renforcer l'adhérence au jeu.
GigaMedia (NASDAQ: GIGM) hat die finanziellen Ergebnisse für das dritte Quartal 2024 veröffentlicht, die gemischte Leistungen zeigen. Die Einnahmen stiegen im Vergleich zum Vorquartal um 6,7% auf $0,77 Millionen, während der Bruttogewinn um 3,3% auf $0,37 Millionen anstieg. Das Unternehmen verzeichnete jedoch einen operativen Verlust von $1,01 Millionen und einen Nettoverlust von $0,32 Millionen. Im Jahresvergleich sanken die Einnahmen um 28,2% von $1,07 Millionen. Das Unternehmen verfügt über eine starke finanzielle Position mit $35,3 Millionen in Bargeld und Äquivalenten, was $3,20 pro Aktie entspricht. Das Management plant, die Funktionen des sozialen Netzwerks in ihren Spielen zu verbessern, um die Spieler-Community zu fördern und die Spielbindung zu stärken.
- Quarter-over-quarter revenue growth of 6.7%
- Strong cash position of $35.3 million ($3.20 per share)
- Reduced net loss from $0.61M in Q2 to $0.32M in Q3 2024
- Operating loss of $1.01 million
- 28.2% year-over-year revenue decline
- 36.2% year-over-year decrease in gross profit
- Declining gross profit margin from 49.9% to 48.4%
Insights
The Q3 2024 results paint a concerning picture for GigaMedia. While quarterly revenue increased by
The company's saving grace is its strong balance sheet, with
The declining gross profit margins and persistent operational losses suggest structural issues in the business model. The planned enhancement of social networking features appears insufficient to address the fundamental challenge of revenue generation and cost management.
Comments from Management
In the third quarter of 2024, GigaMedia reported revenues of
If compared to last quarter, the total revenues increased by
In the following quarter, we will be enhancing the social networking function in our games to promote our players' community and to strengthen stickiness of our games.
Third Quarter Overview
- Revenues increased by
6.7% quarter-on-quarter to approximately$0.77 million $0.72 million - Consolidated loss from operations for the third quarter of 2024 amounted to
$1.01 million $1.05 million - The net asset value was around
$3.78
Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia's digital entertainment service business FunTown develops and operates a suite of digital entertainments in
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Third Quarter
GIGAMEDIA 3Q24 UNAUDITED CONSOLIDATED FINANCIAL RESULTS | ||||||||||||||||||||||||
(unaudited, all figures in US$ thousands, except per share amounts) | 3Q24 | 2Q24 | Change | 3Q24 | 3Q23 | Change | ||||||||||||||||||
Revenues | 769 | 721 | 6.7 | % | 769 | 1,071 | (28.2 | ) % | ||||||||||||||||
Gross Profit | 372 | 360 | 3.3 | % | 372 | 583 | (36.2 | ) % | ||||||||||||||||
Loss from Operations | (1,008 | ) | (1,048 | ) | NM | (1,008 | ) | (893 | ) | NM | ||||||||||||||
Net Loss Attributable to GigaMedia | (320 | ) | (612 | ) | NM | (320 | ) | (507 | ) | NM | ||||||||||||||
Loss Per Share Attributable to GigaMedia, Diluted | (0.03 | ) | (0.06 | ) | NM | (0.03 | ) | (0.05 | ) | NM | ||||||||||||||
EBITDA (A) | (810 | ) | (1,116 | ) | NM | (810 | ) | (946 | ) | NM | ||||||||||||||
Cash, Cash Equivalents and Restricted Cash | 35,328 | 36,343 | (2.8 | ) % | 35,328 | 38,823 | (9.0 | ) % | ||||||||||||||||
NM= Not Meaningful |
(A) EBITDA (earnings before interest, taxes, depreciation, and amortization) is provided as a supplement to results provided in accordance with
- Consolidated revenues for the third quarter of 2024 were
$0.77 million 6.7% compared to$0.72 million 28.2% year-over-year from$1.01 million - Consolidated gross profit increased by
3.3% quarter-on-quarter to$0.37 million $0.36 million 36.2% year-over-year from$0.58 million - Consolidated loss from operation of the third quarter of 2024 was
$1.01 million $1.05 million - Consolidated net loss of the third quarter of 2024 was
$0.32 million $0.61 million - Cash, cash equivalents and restricted cash at the end of the third quarter of 2024 was
$35.3 million
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of October 30, 2024. Given potential changes in economic conditions and consumer spending, the evolving nature of online games, and various other risk factors, including those discussed in the Company's 2023 Annual Report on Form 20-F filed with the
"For the following quarter, GigaMedia will continue the strategies of internally-driven growth by improving productivity of the existing games, executing effective marketing, and pursuing a steady expansion of customer base," stated GigaMedia CEO James Huang.
In the meantime, we will continue reviewing suitable prospects for strategic investment and acquisition targets to increase corporate growth and maximize 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 third 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 | |||||||||||||||||||
9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||||||||||
unaudited | unaudited | unaudited | unaudited | unaudited | ||||||||||||||||
USD | USD | USD | USD | USD | ||||||||||||||||
Operating revenues | ||||||||||||||||||||
Digital entertainment service revenues | 769 | 721 | 1,071 | 2,214 | 3,421 | |||||||||||||||
769 | 721 | 1,071 | 2,214 | 3,421 | ||||||||||||||||
Operating costs | ||||||||||||||||||||
Cost of digital entertainment service revenues | 397 | 361 | 488 | 1,137 | 1,480 | |||||||||||||||
397 | 361 | 488 | 1,137 | 1,480 | ||||||||||||||||
Gross profit | 372 | 360 | 583 | 1,077 | 1,941 | |||||||||||||||
Operating expenses | ||||||||||||||||||||
Product development and engineering expenses | 170 | 175 | 183 | 530 | 550 | |||||||||||||||
Selling and marketing expenses | 375 | 348 | 441 | 1,101 | 1,279 | |||||||||||||||
General and administrative expenses | 835 | 885 | 846 | 2,615 | 2,616 | |||||||||||||||
Other | — | — | 6 | 1 | 7 | |||||||||||||||
1,380 | 1,408 | 1,476 | 4,247 | 4,452 | ||||||||||||||||
Loss from operations | (1,008 | ) | (1,048 | ) | (893 | ) | (3,170 | ) | (2,511 | ) | ||||||||||
Non-operating income (expense) | ||||||||||||||||||||
Interest income | 504 | 518 | 453 | 1,492 | 1,293 | |||||||||||||||
Foreign exchange loss - net | 182 | (87 | ) | (236 | ) | (180 | ) | (372 | ) | |||||||||||
Gain on disposal of investments | — | — | 77 | — | 77 | |||||||||||||||
Changes in the fair value of an instrument recognized at fair value | (6 | ) | 3 | 86 | 7 | 119 | ||||||||||||||
Other-net | 8 | 2 | 6 | 18 | 13 | |||||||||||||||
688 | 436 | 386 | 1,337 | 1,130 | ||||||||||||||||
Loss from continuing operations before income taxes | (320 | ) | (612 | ) | (507 | ) | (1,833 | ) | (1,381 | ) | ||||||||||
Income tax expense | — | — | — | — | — | |||||||||||||||
Net loss attributable to shareholders of GigaMedia | (320 | ) | (612 | ) | (507 | ) | (1,833 | ) | (1,381 | ) | ||||||||||
Loss per share attributable to GigaMedia: | ||||||||||||||||||||
Basic | (0.03 | ) | (0.06 | ) | (0.05 | ) | (0.17 | ) | (0.12 | ) | ||||||||||
Diluted | (0.03 | ) | (0.06 | ) | (0.05 | ) | (0.17 | ) | (0.12 | ) | ||||||||||
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
9/30/2024 | 6/30/2024 | 9/30/2023 | ||||||||||
unaudited | unaudited | unaudited | ||||||||||
USD | USD | USD | ||||||||||
Assets | ||||||||||||
Current assets | ||||||||||||
Cash and cash equivalents | 35,015 | 36,030 | 38,510 | |||||||||
Accounts receivable - net | 157 | 198 | 253 | |||||||||
Prepaid expenses | 123 | 226 | 123 | |||||||||
Restricted cash | 313 | 313 | 313 | |||||||||
Other receivables | 392 | 496 | 364 | |||||||||
Other current assets | 144 | 142 | 145 | |||||||||
Total current assets | 36,144 | 37,405 | 39,708 | |||||||||
Investment in securities - noncurrent | 6,840 | 5,819 | 9,433 | |||||||||
Property, plant & equipment - net | 102 | 109 | 116 | |||||||||
Intangible assets - net | 5 | 8 | 10 | |||||||||
Prepaid licensing and royalty fees | 179 | 215 | 65 | |||||||||
Other assets | 1,244 | 1,264 | 1,348 | |||||||||
Total assets | 44,514 | 44,820 | 50,680 | |||||||||
Liabilities and equity | ||||||||||||
Accounts payable | 27 | 23 | 30 | |||||||||
Accrued compensation | 350 | 250 | 321 | |||||||||
Accrued expenses | 912 | 778 | 1,005 | |||||||||
Unearned revenue | 608 | 565 | 812 | |||||||||
Other current liabilities | 691 | 686 | 720 | |||||||||
Total current liabilities | 2,588 | 2,302 | 2,888 | |||||||||
Other liabilities | 154 | 254 | 562 | |||||||||
Total liabilities | 2,742 | 2,556 | 3,450 | |||||||||
Total equity | 41,772 | 42,264 | 47,230 | |||||||||
Total liabilities and equity | 44,514 | 44,820 | 50,680 | |||||||||
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
Three months ended | Six months ended | |||||||||||||||||||
9/30/2024 | 6/30/2024 | 9/30/2023 | 9/30/2024 | 9/30/2023 | ||||||||||||||||
unaudited | unaudited | unaudited | unaudited | unaudited | ||||||||||||||||
USD | USD | USD | USD | USD | ||||||||||||||||
Reconciliation of Net Loss to EBITDA | ||||||||||||||||||||
Net loss attributable to GigaMedia | (320 | ) | (612 | ) | (507 | ) | (1,833 | ) | (1,381 | ) | ||||||||||
Depreciation | 12 | 12 | 11 | 36 | 32 | |||||||||||||||
Amortization | 2 | 2 | 3 | 7 | 9 | |||||||||||||||
Interest income | (504 | ) | (518 | ) | (453 | ) | (1,492 | ) | (1,293 | ) | ||||||||||
Interest expense | — | — | — | — | — | |||||||||||||||
Income tax expense | — | — | — | — | — | |||||||||||||||
EBITDA | (810 | ) | (1,116 | ) | (946 | ) | (3,282 | ) | (2,633 | ) | ||||||||||
View original content:https://www.prnewswire.com/news-releases/gigamedia-announces-third-quarter-2024-financial-results-302291489.html
SOURCE GigaMedia
FAQ
What was GigaMedia's (GIGM) revenue in Q3 2024?
How much cash does GigaMedia (GIGM) have as of Q3 2024?
What was GigaMedia's (GIGM) net loss in Q3 2024?
