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GigaMedia Announces Second-Quarter 2025 Financial Results

1. GigaMedia's Q2 2025 net income reached $0.84 million, up from loss last quarter. 2. Revenue increased 1.0% QoQ and 20.4% YoY, signaling growth. 3. Company's gross profit climbed 3.7% quarter-on-quarter. 4. CEO announced focus on productivity during second half of 2025. 5. The firm is evaluating strategic investments for growth.

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Why Bullish?

Despite an operating loss, GigaMedia turned a profit due to foreign exchange gains; revenue and gross profit are growing year-over-year, indicating overall business health. Historical context shows such trends often bolster stock prices, particularly in tech-oriented markets.

How important is it?

The article highlights improvements in revenue and profitability, which are critical indicators for investors; potential strategic expansions and investments add to GigaMedia's attractiveness as a growth stock.

Why Long Term?

The strategic focus on enhancing gaming platforms could result in sustained growth over time, enhancing user engagement and revenue potential in a growing digital entertainment sector.

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ATVIZNGAEA
, /PRNewswire/ -- 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 [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 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. GIGAMEDIA LIMITEDCONSOLIDATED 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 LIMITEDCONSOLIDATED 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 LIMITEDRECONCILIATIONS 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) 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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