Exhibit 99.1

 

FOR IMMEDIATE RELEASE

 

For further information contact:

 

 

 

 

 

Investor Relations Department

 

 

Country/City Code 8862 Tel: 2656-8000

 

 

IR@gigamedia.com.tw

 

GigaMedia Announces Second-Quarter 2025

Financial Results

 

TAIPEI, Taiwan, July 31, 2025 GigaMedia Limited (NASDAQ: GIGM) today announced its second-quarter 2025 unaudited financial results.

Comments from Management

In the second quarter of 2025, GigaMedia reported revenues of $0.87 million, with a gross profit $0.48 million, an operating loss of $0.92 million, but a net income of $0.84 million.

 

While the operating results were improved slightly from those in the first quarter 2025, the bottom line was turned into net income from a net loss of $0.68 million last quarter, mainly because of foreign exchange gains.

 

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 increased by approximately 1.0% quarter-on-quarter, from $0.86 million in last quarter, and increased by 20.4% year-over-year from $0.72 million the same period last year.
Gross profit increased by 3.7% to $0.48 million from $0.46 million in last quarter, and increased by 32.5% compared to $0.36 million in the same period last year.
The net asset value was $3.57 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 Second Quarter

 

GIGAMEDIA 2Q25 UNAUDITED CONSOLIDATED FINANCIAL RESULTS

 

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

 

2Q25

 

 

1Q25

 

 

Change
(%)

 

 

2Q25

 

 

2Q24

 

 

Change
(%)

 

Revenues

 

 

868

 

 

 

859

 

 

 

1.0

%

 

 

868

 

 

 

721

 

 

 

20.4

%

Gross Profit

 

 

477

 

 

 

460

 

 

 

3.7

%

 

 

477

 

 

 

360

 

 

 

32.5

%

Loss from Operations

 

 

(918

)

 

 

(970

)

 

NM

 

 

 

(918

)

 

 

(1,048

)

 

NM

 

Net Income (Loss) Attributable to GigaMedia

 

 

844

 

 

 

(677

)

 

NM

 

 

 

844

 

 

 

(612

)

 

NM

 

Earnings (Loss) Per Share Attributable to GigaMedia, Diluted

 

 

0.08

 

 

 

(0.06

)

 

NM

 

 

 

0.08

 

 

 

(0.06

)

 

NM

 

EBITDA (A)

 

 

423

 

 

 

(1,086

)

 

NM

 

 

 

423

 

 

 

(1,116

)

 

NM

 

Cash, Cash Equivalents and Restricted Cash

 

 

31,186

 

 

 

31,400

 

 

 

(0.7

)%

 

 

31,186

 

 

 

36,343

 

 

 

(14.2

)%

 

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.)

 

Second-Quarter Financial Results

Consolidated revenues for the second quarter of 2025 slightly increased by 1.0% quarter-on-quarter from $0.86 million in last quarter, and increased by 20.4% year-over-year from $0.72 million the same period last year.
Consolidated gross profit was $0.48 million, increased by 3.7% quarter-on-quarter and by 32.5% year-over-year.
Consolidated loss from operation of the second quarter of 2025 was a loss of $0.92 million, improved from $0.97 million in the first quarter.
Net income in the second quarter of 2025 was $0.84 million, improved from a net loss of $0.68 million in the first quarter, mainly due to foreign exchange gains in this quarter.
Cash, cash equivalents and restricted cash at the end of the second quarter of 2025 amounted to $31.2 million, decreased by 0.7% from $31.4 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 $31.2 million, or $2.82 per share, as of June 30, 2025.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of July 31, 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 2024 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 2025, 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 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 2025 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 2025 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

 

 

 

6/30/2025

 

 

3/31/2025

 

 

6/30/2024

 

 

6/30/2025

 

 

6/30/2024

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Operating revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Digital entertainment service revenues

 

 

868

 

 

 

859

 

 

 

721

 

 

 

1,726

 

 

 

1,445

 

 

 

 

868

 

 

 

859

 

 

 

721

 

 

 

1,726

 

 

 

1,445

 

Operating costs

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of digital entertainment service revenues

 

 

391

 

 

 

399

 

 

 

361

 

 

 

790

 

 

 

741

 

 

 

 

391

 

 

 

399

 

 

 

361

 

 

 

790

 

 

 

741

 

Gross profit

 

 

477

 

 

 

460

 

 

 

360

 

 

 

936

 

 

 

704

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product development and engineering expenses

 

 

157

 

 

 

195

 

 

 

175

 

 

 

352

 

 

 

360

 

Selling and marketing expenses

 

 

360

 

 

 

394

 

 

 

348

 

 

 

754

 

 

 

726

 

General and administrative expenses

 

 

877

 

 

 

840

 

 

 

885

 

 

 

1,717

 

 

 

1,781

 

Other

 

 

1

 

 

 

1

 

 

 

 

 

 

1

 

 

 

1

 

 

 

 

1,395

 

 

 

1,430

 

 

 

1,408

 

 

 

2,824

 

 

 

2,868

 

Loss from operations

 

 

(918

)

 

 

(970

)

 

 

(1,048

)

 

 

(1,888

)

 

 

(2,164

)

Non-operating income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

436

 

 

 

423

 

 

 

518

 

 

 

859

 

 

 

989

 

Foreign exchange gains (loss) - net

 

 

1,330

 

 

 

(133

)

 

 

(87

)

 

 

1,197

 

 

 

(362

)

Changes in the fair value of an instrument recognized at fair value

 

 

(9

)

 

 

3

 

 

 

3

 

 

 

(6

)

 

 

13

 

Other-net

 

 

5

 

 

 

 

 

 

2

 

 

 

5

 

 

 

10

 

 

 

 

1,762

 

 

 

293

 

 

 

436

 

 

 

2,055

 

 

 

650

 

Income (loss) before income taxes

 

 

844

 

 

 

(677

)

 

 

(612

)

 

 

167

 

 

 

(1,514

)

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to shareholders of GigaMedia

 

 

844

 

 

 

(677

)

 

 

(612

)

 

 

167

 

 

 

(1,514

)

Earnings (loss) per share attributable to GigaMedia:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

0.08

 

 

 

(0.06

)

 

 

(0.06

)

 

 

0.02

 

 

 

(0.14

)

Diluted

 

 

0.08

 

 

 

(0.06

)

 

 

(0.06

)

 

 

0.02

 

 

 

(0.14

)

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

 

 

6/30/2025

 

 

3/31/2025

 

 

6/30/2024

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

Assets

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

30,873

 

 

 

31,087

 

 

 

36,030

 

Investment in securities-current

 

 

 

 

 

 

 

 

 

Accounts receivable - net

 

 

167

 

 

 

145

 

 

 

198

 

Prepaid expenses

 

 

235

 

 

 

376

 

 

 

226

 

Restricted cash

 

 

313

 

 

 

313

 

 

 

313

 

Other receivables

 

 

259

 

 

 

268

 

 

 

496

 

Other current assets

 

 

140

 

 

 

130

 

 

 

142

 

Total current assets

 

 

31,987

 

 

 

32,319

 

 

 

37,405

 

 

 

 

 

 

 

 

 

 

 

Investment in securities - noncurrent

 

 

8,120

 

 

 

8,094

 

 

 

5,819

 

Property, plant & equipment - net

 

 

98

 

 

 

99

 

 

 

109

 

Intangible assets - net

 

 

4

 

 

 

6

 

 

 

8

 

Prepaid licensing and royalty fees

 

 

86

 

 

 

118

 

 

 

215

 

Other assets

 

 

1,403

 

 

 

1,210

 

 

 

1,264

 

Total assets

 

 

41,698

 

 

 

41,846

 

 

 

44,820

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

Accounts payable

 

 

30

 

 

 

37

 

 

 

24

 

Accrued compensation

 

 

314

 

 

 

179

 

 

 

250

 

Accrued expenses

 

 

702

 

 

 

709

 

 

 

778

 

Unearned revenue

 

 

614

 

 

 

575

 

 

 

565

 

Other current liabilities

 

 

332

 

 

 

525

 

 

 

686

 

Total current liabilities

 

 

1,992

 

 

 

2,025

 

 

 

2,303

 

Other liabilities

 

 

286

 

 

 

35

 

 

 

253

 

Total liabilities

 

 

2,278

 

 

 

2,060

 

 

 

2,556

 

Total equity

 

 

39,420

 

 

 

39,786

 

 

 

42,264

 

Total liabilities and equity

 

 

41,698

 

 

 

41,846

 

 

 

44,820

 

 

 


GIGAMEDIA LIMITED

RECONCILIATIONS OF NON-GAAP RESULTS OF OPERATIONS

 

 

Three months ended

 

 

Six months ended

 

 

 

6/30/2025

 

 

3/31/2025

 

 

6/30/2024

 

 

6/30/2025

 

 

6/30/2024

 

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

unaudited

 

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

 

USD

 

Reconciliation of Net Income (Loss) to EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) attributable to GigaMedia

 

 

844

 

 

 

(677

)

 

 

(612

)

 

 

167

 

 

 

(1,514

)

Depreciation

 

 

13

 

 

 

12

 

 

 

12

 

 

 

26

 

 

 

24

 

Amortization

 

 

2

 

 

 

2

 

 

 

2

 

 

 

4

 

 

 

5

 

Interest income

 

 

(436

)

 

 

(423

)

 

 

(518

)

 

 

(859

)

 

 

(989

)

Interest expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

 

423

 

 

 

(1,086

)

 

 

(1,116

)

 

 

(662

)

 

 

(2,474

)