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GigaMedia Announces First-Quarter 2025 Financial Results

1. GigaMedia's Q1 2025 revenues reached $0.86M, up 13.8% quarter-over-quarter. 2. Gross profit also improved to $0.46M, reflecting a 15.6% quarterly increase. 3. Operating loss widened to $0.97M but narrowed from $1.11M year-over-year. 4. Cash reserves decreased to $31.4M, from $35.09M last quarter. 5. Management aims to boost productivity and expand customer bases despite economic uncertainty.

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Why Neutral?

Despite revenue growth, increased operating losses and declining cash reserves may concern investors. Historically, similar performance metrics have led to stagnant or negative stock responses.

How important is it?

The financial performance directly affects investor sentiment and market perception of GIGM's viability.

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Financial results typically influence short-term stock performance; immediate reactions may stem from losses and cash decline.

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ATVIEAZNGA
, /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 [email protected], 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 LIMITEDCONSOLIDATED 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 LIMITEDCONSOLIDATED 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 LIMITEDReconciliations 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) SOURCE GigaMedia WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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