Keep Your Eyes on This Stock: GigaMedia Limited (NASDAQ:GIGM)

Earnings News

GigaMedia Limited (NASDAQ:GIGM) spotted trading -34.53% off 52-week high price. On the other end, the stock has been noted 21.19% away from the low price over the last 52-weeks. The stock changed -3.05% to recent value of $2.86. The stock transacted 24291 shares during most recent day however it has an average volume of 18.58K shares. The company has 11.09M of outstanding shares and 6.79M shares were floated in the market.

GigaMedia Limited (NASDAQ:GIGM) reported its third-quarter 2018 unaudited financial results.

Comments from Management

In the third quarter of 2018, total revenues maintained at approximately $1.7 million, comparable to last quarter.

“In this quarter, new games have been added in our female-oriented product line to provide diversity and satisfaction, but nonetheless, it is the proven success in existing games like Yume 100 that we laid stress on enhancing and replicating,” said GigaMedia Limited CEO James Huang.

“Meanwhile, we continued carrying out the plan of renovating the legacy casual games as well as re-activating our own vast customer base, and we expect favorable results to exhibit in the coming quarters,” continued CEO James Huang. “To our goal of achieving a long-term balanced growth, it is very essential to re-invigorate our legacy self-developed games.”

Third Quarter Overview

Revenues maintained at approximately $1.7 million, comparable to the second quarter of this year.

Consolidated loss from operations for the third quarter of 2018 amounted to $1.5 million, an increase in loss by 10.6% from a loss of $1.3 million last quarter.

The net asset value was around $5.28 per share.

Third-Quarter Financial Results

Consolidated revenues for the third quarter of 2018 maintained at $1.7 million approximately the same as in prior quarter and decreased year-over-year from $2.3 million to $1.7 million. While revenues from Akaseka and the legacy casual games declined, the increases in the newly launched Sengoku, and the long-lived Yume 100 and Tales Runner made up for the decreases.

Consolidated gross profit decreased 4.67% quarter-on-quarter from $0.73 million to $0.70 million and decreased 52.37% year-over-year from $1.5 million to $0.7 million.

Consolidated operating expenses were $2.2 million in the third quarter of 2018. An increase of $0.1 million which is about 5.2% from the second quarter of 2018. The increase was mainly due to the increase in marketing expenses for the launch of Sengoku and the third anniversary of Yume 100.

Consolidated loss from operation of the third quarter of 2018 was $1.5 million, an increase in loss by 10.6% from a loss of $1.3 million in last quarter.

Consolidated net loss of the third quarter of 2018 was $1.1 million compared to $0.8 million in last quarter.

Cash and marketable securities-current as of the end of the third quarter of 2018 accounted for $59.9 million, decreasing by 1.33% from $60.7 million at the end of the second quarter of 2018.

Financial Position


GigaMedia maintained its solid financial position, with cash, restricted cash and cash equivalents accounted for $60.4 million as of September 30, 2018, or $5.5 per share.

Business Outlook

The following forward-looking statements reflect GigaMedia’s expectations as of October 31, 2018. 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 2017 Annual Report on Form 20-F filed with the U.S. Securities and Exchange Commission as referenced below, actual results may differ materially.

GigaMedia CEO James Huang said: “In the following quarters, we will put more efforts on improving productivity in operating of existing games, and especially on in-house developing and revitalizing our self-developed games.”

“While we continue seeking suitable strategic investment and acquisition targets to increase corporate growth and maximize shareholders’ value, considering recent fluctuations in world equity market, any opportunities will be approached very cautiously. Meanwhile, we believe a profitable entertainment business of ours would certainly give us more leverage and present more possibilities of synergies when we are entering into a strategic cooperation and acquisition,” stated CEO James Huang.

Its earnings per share (EPS) expected to touch remained 117.90% for this year while earning per share for the next 5-years is expected to reach at 10.00%. GIGM has a gross margin of 54.10% and an operating margin of -40.80% while its profit margin remained -8.20% for the last 12 months.

According to the most recent quarter its current ratio was 13.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of 1.35% from the mean of 20 days, -2.10% from mean of 50 days SMA and performed -2.46% from mean of 200 days price. Company’s performance for the week was 1.78%, -4.35% for month and YTD performance remained -5.92%.

Thomas Lizotte is a self-taught investor and follows the value investing approach to picking stocks. He possesses over 10 years of investment experience, an M.B.A. from Louisiana State University, and is also certified in Risk Management Assurance. Thomas is a Certified Internal Auditor, Data Miner, and author with a career broadly spanning over multiple business areas. He has exploited those observations and developed investment tactics within a fundamentally sound long-term investment strategy. He currently covers Earnings News category for our site.



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