6-K
GIGAMEDIA Ltd (GIGM)
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15D-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
For the month of July, 2020
Commission File Number: 000-30540
GIGAMEDIA LIMITED
8F, No.22, Lane 407, Section 2, Tiding Boulevard
Neihu District
Taipei, Taiwan (R.O.C.)
(Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.)
Form 20-F [ x ]Form 40-F [ ]
(Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.)
Yes [ ]No [ x ]
(If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b) :82- .)
GIGAMEDIA LIMITED is submitting under cover of Form 6-K:
GigaMedia Announces Second-Quarter 2020 Financial Results (attached hereto as Exhibit 99.1)
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| GigaMedia Limited | |
|---|---|
| (Registrant) | |
| Date: July 30, 2020 | By: /s/ HUANG, CHENG-MING |
| (Signature) | |
| Name: HUANG, CHENG-MING | |
| Title: Chief Executive Officer |
gigm-ex991_22.htm
Exhibit 99.1
| FOR IMMEDIATE RELEASE | For further information contact: |
|---|---|
| Investor Relations Department | |
| Country/City Code 8862 Tel: 2656-8096 | |
| IR@gigamedia.com.tw |
GigaMedia Announces Second-Quarter 2020
Financial Results
TAIPEI, Taiwan, July 30, 2020 – GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2020 unaudited financial results.
Comments from Management
In the second quarter of 2020, GigaMedia reported revenues of $1.83 million, with a gross profit $0.98 million, an operating loss of $0.55 million and the net loss of $0.42 million. Total revenues increased by 13.8% if compared to the previous quarter.
“In spite of the ongoing disruption of the pandemic to our operations, we have achieved clear improvements,” said GigaMedia CEO James Huang. “We have reshaped our cost structure and remodeled our marketing strategies, thereby approximately halved the operating loss if comparing to the same quarter last year.”
“And we are also enhancing the playability and stickiness of FunTown M, our in-house developed mobile platform of casual games,” continued GigaMedia CEO James Huang, “which will be the most crucial piece to fall in place for our turning profitable beyond just break-even.”
Second Quarter Overview
| • | Operating revenues increased by approximately 13.8% quarter-on-quarter, to $1.83 million from $1.60 million in last quarter, and 4.3% year-over-year from $1.75 million the same period last year. The increase was mainly attributable to our efforts in revitalizing Tales Runner, a 14-year-old licensed game we operate in Hong Kong. |
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| • | Gross profit increased slightly by 5.5% to $0.98 million from $0.93 million in last quarter, and increased by 27.2% compared to $0.77 million in the same period last year. |
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| • | The net asset value was $4.96 per share. |
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Unaudited Consolidated Financial Results
GigaMedia Limited is a diversified provider of digital entertainment services. GigaMedia’s digital entertainment service business FunTown develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on browser/mobile games and casual games.
Unaudited consolidated results of GigaMedia are summarized in the table below.
For the Second Quarter
| GIGAMEDIA 2Q20 UNAUDITED CONSOLIDATED FINANCIAL RESULTS | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (unaudited, all figures in US$ thousands, except per share amounts) | 2Q20 | 1Q20 | Change<br><br><br>(%) | 2Q20 | 2Q19 | Change<br><br><br>(%) | ||||||||||||
| Revenues | 1,826 | 1,604 | 13.8 | % | 1,826 | 1,750 | 4.3 | % | ||||||||||
| Gross Profit | 978 | 927 | 5.5 | % | 978 | 769 | 27.2 | % | ||||||||||
| Loss from Operations | (549 | ) | (640 | ) | NM | (549 | ) | (1,122 | ) | NM | ||||||||
| Net Loss Attributable to GigaMedia | (419 | ) | (286 | ) | NM | (419 | ) | (614 | ) | NM | ||||||||
| Net Loss Per Share Attributable to<br><br><br>GigaMedia, Diluted | (0.04 | ) | (0.03 | ) | NM | (0.04 | ) | (0.06 | ) | NM | ||||||||
| EBITDA ^(A)^ | (634 | ) | (536 | ) | NM | (634 | ) | (1,000 | ) | NM | ||||||||
| Cash, Cash Equivalents and<br><br><br>Restricted Cash | 56,783 | 57,311 | (0.9) | % | 56,783 | 58,015 | (2.1) | % |
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.)^^ |
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Second-Quarter Financial Results
| • | Consolidated revenues for the second quarter of 2020 increased by 13.8% quarter-on-quarter to $1.83 million from $1.60 million in last quarter, and by 4.3% year-over-year from $1.75 million the same period last year. |
|---|---|
| • | Consolidated gross profit was $0.98 million, increased by 5.5% quarter-on-quarter and 27.2% year-over-year. |
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| • | Consolidated operating expenses were $1.53 million, comparable to the first quarter of 2020 and decreased by 19.3% if compared to the same period last year, which reflected a decrease in marketing expenses and general expenses. |
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| • | Consolidated loss from operation of the second quarter of 2020 was a loss of $0.55 million, reflecting an improvement from a loss of $0.64 million in the first quarter. |
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| • | Net loss in the second quarter of 2020 was $0.42 million, increasing from a net loss of $0.29 million in the first quarter this year mainly due to lower interest income and exchange loss in this quarter. |
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| • | Cash, cash equivalents and restricted cash at the end of the second quarter of 2020 amounted to $56.8 million, slightly decreased by 0.9% from $57.3 million as of the end of the first quarter. |
| --- | --- |
Financial Position
GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounted to $56.8 million, or $5.14 per share, as of June 30, 2020.
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of July 30, 2020. 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 2019 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.
In the second half of 2020, we will continue improving productivities of the existing games, in which FunTown M, our own mobile platform of casual games, is expected to begin contributing to our revenues. Along with our various product lines and customer platform, we will gradually accumulate the momentum to an upward trend.
Meanwhile, 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 U.S. GAAP, unless otherwise noted as “non-GAAP,” and are presented in U.S. dollars.
Q&A
For Q&A regarding the second quarter 2020 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 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 2020 and its other filings with the United States Securities and Exchange Commission.
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(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
| Three months ended | Six months ended | |||||||||
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| 06/30/2020 | 03/31/2020 | 06/30/2019 | 06/30/2020 | 06/30/2019 | ||||||
| unaudited | unaudited | unaudited | unaudited | unaudited | ||||||
| Operating revenues | ||||||||||
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| Other | ) | |||||||||
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| Other - net | ) | ) | ) | |||||||
| Loss before income taxes | ) | ) | ) | ) | ) | |||||
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| Net loss attributable to shareholders of GigaMedia | ) | ) | ) | ) | ) | |||||
| Loss per share attributable to GigaMedia | ||||||||||
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| Diluted | ) | ) | ) | ) | ) | |||||
| Weighted average shares outstanding: | ||||||||||
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| Diluted |
All values are in US Dollars.
GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
| 06/30/2020 | 03/31/2020 | 06/30/2019 | |
|---|---|---|---|
| unaudited | unaudited | unaudited | |
| Assets | |||
| Current assets | |||
| Cash and cash equivalents | |||
| Accounts receivable - net | |||
| Prepaid expenses | |||
| Restricted cash | |||
| Other receivables | |||
| Other current assets | |||
| Total current assets | |||
| Property, plant & equipment - net | |||
| Intangible assets - net | |||
| Prepaid licensing and royalty fees | |||
| Other assets | |||
| Total assets | |||
| Liabilities and equity | |||
| Accounts payable | |||
| Accrued compensation | |||
| Accrued expenses | |||
| Unearned revenue | |||
| Other current liabilities | |||
| Total current liabilities | |||
| Other liabilities | |||
| Total liabilities | |||
| GigaMedia’s shareholders’ equity | |||
| Total liabilities and equity |
All values are in US Dollars.
GIGAMEDIA LIMITED
RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS
| Three months ended | Six months ended | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|
| 06/30/2020 | 03/31/2020 | 06/30/2019 | 06/30/2020 | 06/30/2019 | ||||||
| unaudited | unaudited | unaudited | unaudited | unaudited | ||||||
| Reconciliation of Net Loss to EBITDA | ||||||||||
| Net loss attributable to GigaMedia | ) | ) | ) | ) | ) | |||||
| Depreciation | ||||||||||
| Amortization | ) | |||||||||
| Interest income | ) | ) | ) | ) | ) | |||||
| Interest expense | ||||||||||
| Income tax (benefit) expense | ||||||||||
| EBITDA | ) | ) | ) | ) | ) |
All values are in US Dollars.