GigaMedia Announces First-Quarter 2025 Financial Results

Rhea-AI Summary

GigaMedia (NASDAQ: GIGM) reported its Q1 2025 financial results, showing mixed performance. The company's revenues increased by 13.8% quarter-over-quarter to $0.86 million, with a gross profit of $0.46 million. However, the company recorded an operating loss of $0.97 million and a net loss of $0.68 million. While these losses increased from Q4 2024, they showed improvement year-over-year. The company maintained a strong cash position of $31.40 million ($2.84 per share) as of March 31, 2025, though this decreased from $35.09 million in the previous quarter. Management continues to focus on rightsizing workforce, consolidating resources, and exploring strategic investments while developing digital entertainment products despite economic uncertainties.

Positive

• Revenue increased 13.8% QoQ to $0.86 million and 18.5% YoY
• Gross profit improved 15.6% QoQ to $0.46 million and 32.9% YoY
• Strong cash position of $31.4 million ($2.84 per share)
• Operating loss improved YoY from $1.11 million to $0.97 million
• Net loss decreased YoY by $0.22 million

Negative

• Operating loss increased QoQ from $0.53 million to $0.97 million
• Net loss increased QoQ from $0.46 million to $0.68 million
• Cash position decreased by $3.69 million QoQ
• Operating expenses increased by $0.50 million compared to prior quarter
• EBITDA loss of $1.086 million

Insights

Financial Analyst

GigaMedia shows mixed Q1 results with revenue growth but wider operating losses and significant cash reduction, suggesting operational challenges despite improving gross margins.

GigaMedia's Q1 2025 results present a contradictory financial picture that warrants careful examination. The company achieved revenue of $0.86 million, marking a 13.8% quarter-over-quarter increase and a more substantial 18.5% year-over-year improvement. More impressively, gross profit rose to $0.46 million, representing growth of 15.6% from last quarter and 32.9% year-over-year, indicating improving gross margins.

However, these top-line improvements are overshadowed by concerning operational metrics. The operating loss widened to $0.97 million from $0.53 million in the previous quarter, representing an 82.9% deterioration. Similarly, net losses increased to $0.68 million from $0.46 million quarter-over-quarter. The company's negative EBITDA of $1.09 million worsened from $0.92 million in the previous quarter.

Particularly troubling is the rapid cash depletion. Cash and equivalents fell to $31.4 million, representing a $3.69 million reduction in just one quarter (10.5% decrease). This burn rate raises questions about operational efficiency despite management's stated efforts to rightsize the workforce and consolidate resources.

The company's digital entertainment services, focused on mobile and casual games in Taiwan and Hong Kong through its FunTown service, face challenges in a difficult economic environment that's affecting consumer entertainment spending. Management's acknowledgment of these headwinds, coupled with their discussion of pursuing strategic investments "prudently but more aggressively," suggests they're seeking alternative growth avenues beyond their current business model.

While the year-over-year comparisons show improvement in controlling losses, the sequential quarterly trends point to ongoing operational challenges that require monitoring, especially given the accelerated cash burn relative to the modest revenue base.

TAIPEI, May 5, 2025 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its first quarter 2025 unaudited financial results.

Comments from Management

For the first quarter of 2025, GigaMedia reported revenues of $0.86 million with a gross profit of $0.46 million, an operating loss of $0.97 million and the net loss of $0.68 million.

If compared to the previous quarter, the revenues increased by 13.8%. In this quarter, we continued rightsizing our workforce and consolidating resources to enhance productivity.

For the following quarters, we plan to continue our exploration of digital entertainment to further develop and promote our own products and services.

First Quarter Overview

• Operating revenues increased by 13.8% in quarter-on-quarter comparison.
• Loss from operations was $0.97 million, increased from $0.53 million last quarter, but decreased year-over-year from $1.11 million the same quarter last year, and net loss of $0.68 million represented an increase from $0.46 million last quarter, but narrowed by $0.22 million if compared to $0.90 million the same quarter last year.

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 mobile games and casual games. Unaudited consolidated results of GigaMedia are summarized in the table below.

For the First Quarter

GIGAMEDIA 1Q25 UNAUDITED CONSOLIDATED FINANCIAL RESULTS
(unaudited, all figures in US$ thousands, except per share amounts)		1Q25				4Q24				Change (%)				1Q25				1Q24				Change (%)
Revenues			859				755				13.8	%			859				725				18.5	%
Gross Profit			460				398				15.6	%			460				346				32.9	%
Loss from Operations			(970)				(531)			NM					(970)				(1,114)			NM
Net Loss Attributable to GigaMedia			(677)				(462)			NM					(677)				(902)			NM
Loss Per Share Attributable to GigaMedia, Diluted			(0.06)				(0.04)			NM					(0.06)				(0.08)			NM
EBITDA (A)			(1,086)				(918)			NM					(1,086)				(1,358)			NM
Cash, Cash Equivalents and Restricted Cash			31,400				35,094				(10.5)	%			31,400				36,815				(14.7)	%

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.)

First-Quarter Financial Results

• Consolidated revenues for the first quarter of 2025 increased by 13.8% quarter-on-quarter to $0.86 million, from $0.76 million in the fourth quarter of 2024, and by 18.5% year-over-year from $0.73 million in the first quarter of 2024.
• Consolidated gross profit increased to $0.46 million from $0.40 million in last quarter and by 32.9% from $0.35 million in the same quarter last year.
• Consolidated operating expenses were $1.43 million in the first quarter of 2025, approximately increased by $0.50 million when compared to prior quarter, but slightly reduced if compared to the same quarter last year.
• Net loss for the first quarter of 2025 was $0.68 million, increased from $0.46 million net loss last quarter, but narrowed by $0.22 million if compared to $0.90 million the same quarter last year.
• Cash, cash equivalents and restricted cash at the first quarter-end of 2025 amounted to $31.40 million, decreased by approximately $3.69 million from $35.09 million at the fourth quarter-end of 2024.

Financial Position

GigaMedia maintained its solid financial position, with cash, cash equivalents and restricted cash amounting to $31.40 million, or approximately $2.84 per share as of March 31, 2025.

Business Outlook

The following forward-looking statements reflect GigaMedia's expectations as of May 5, 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.

"Current widespread economic uncertainty has certainly cast a long shadow on consumer sentiment, and specifically, entertainment spending," said GigaMedia CEO James Huang. "but we are confident we can ride out the disruption with our strategy of boosting the productivity of our products and services with a leaner team, and expanding customer base with effective marketing strategies."

Meanwhile, our management continues exploring possibilities of expanding our business through strategic investments to create greater shareholder value. We will pursue promising investment opportunities prudently but more aggressively.

Use of Non-GAAP Measures

To supplement GigaMedia's consolidated financial statements presented in accordance with U.S. 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 first 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. GigaMedia's digital entertainment service business develops and operates a suite of digital entertainments in Taiwan and Hong Kong, with focus on browser/mobile games and casual games. More information on GigaMedia can be obtained from www.gigamedia.com.

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
		3/31/2025				12/31/2024				3/31/2024
		unaudited				unaudited				unaudited
		USD				USD				USD
Operating revenues
Digital entertainment service revenues			859				755				725
			859				755				725
Operating costs
Cost of digital entertainment service revenues			399				357				379
			399				357				379
Gross profit			460				398				346
Operating expenses
Product development and engineering expenses			195				164				185
Selling and marketing expenses			394				351				378
General and administrative expenses			840				414				896
Other			1				—				1
			1,430				929				1,460
Loss from operations			(970)				(531)				(1,114)
Non-operating income (expense)
Interest income			423				471				471
Foreign exchange (loss) gain - net			(133)				(246)				(276)
Changes in the fair value of an instrument recognized at fair value			3				(167)				9
Other-net			—				11				8
			293				69				212
Loss from continuing operations before income taxes			(677)				(462)				(902)
Income tax expense			—				—				—
Net loss attributable to shareholders of GigaMedia			(677)				(462)				(902)
Loss per share attributable to GigaMedia:
Basic			(0.06)				(0.04)				(0.08)
Diluted			(0.06)				(0.04)				(0.08)
Weighted average shares outstanding:
Basic			11,052				11,052				11,052
Diluted			11,052				11,052				11,052

 

GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS

		3/31/2025				12/31/2024				3/31/2024
		unaudited				audited				unaudited
		USD				USD				USD
Assets
Current assets
Cash and cash equivalents			31,087				34,781				36,502
Accounts receivable - net			145				141				239
Prepaid expenses			376				69				374
Restricted cash			313				313				313
Other receivables			268				2				371
Other current assets			130				127				138
Total current assets			32,319				35,433				37,937
Investment in securities - noncurrent			8,094				5,441				5,798
Property, plant & equipment - net			99				101				112
Intangible assets - net			6				7				10
Prepaid licensing and royalty fees			118				147				250
Other assets			1,210				1,229				1,322
Total assets			41,846				42,358				45,429
Liabilities and equity
Accounts payable			37				38				22
Accrued expenses			888				745				941
Unearned revenue			575				578				579
Other current liabilities			525				570				688
Total current liabilities			2,025				1,931				2,230
Other liabilities			35				84				379
Total liabilities			2,060				2,015				2,609
Total equity			39,786				40,343				42,820
Total liabilities and equity			41,846				42,358				45,429

 

GIGAMEDIA LIMITED
Reconciliations of Non-GAAP Results of Operations

		Three months ended
		3/31/2025				12/31/2024				3/31/2024
		unaudited				unaudited				unaudited
		USD				USD				USD
Reconciliation of Net Loss to EBITDA
Net loss attributable to GigaMedia			(677)				(462)				(902)
Depreciation			12				13				12
Amortization			2				2				3
Interest income			(423)				(471)				(471)
Interest expense			—				—				—
Income tax expense			—				—				—
EBITDA			(1,086)				(918)				(1,358)

View original content:https://www.prnewswire.com/news-releases/gigamedia-announces-first-quarter-2025-financial-results-302445931.html

SOURCE GigaMedia

FAQ

What were GigaMedia's (GIGM) Q1 2025 revenue and earnings?

GigaMedia reported Q1 2025 revenues of $0.86 million, up 13.8% QoQ, with a net loss of $0.68 million.

How much cash does GigaMedia (GIGM) have as of Q1 2025?

GigaMedia had $31.40 million in cash, cash equivalents and restricted cash as of March 31, 2025, equivalent to $2.84 per share.

What is GigaMedia's (GIGM) business outlook for 2025?

Despite economic uncertainties, GigaMedia plans to boost product productivity with a leaner team, expand customer base through marketing, and explore strategic investments.

How did GigaMedia's (GIGM) Q1 2025 performance compare to Q1 2024?

Year-over-year, revenues increased 18.5%, gross profit grew 32.9%, and net loss improved from $0.90 million to $0.68 million.

What is GigaMedia's (GIGM) current strategy?

GigaMedia is focusing on rightsizing workforce, consolidating resources, developing digital entertainment products, and exploring strategic investments to create greater shareholder value.