TAIPEI, July 31, 2025 /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 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.

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)

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SOURCE GigaMedia

GigaMedia Announces Second-Quarter 2025 Financial Results