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i'm still in with a small position, may look to add prior to end of month...thanks cj
GigaMedia Survives VIE Turmoil: 2012 Is Looking Up
by: Dutch Trader February 21, 2012
In my article of June 3, 2011 called GigaMedia Will Survive Current VIE Turmoil I discussed the time bomb of Variable Interest Entities. Many foreign companies frequently use VIEs to operate in China. A VIE is an entity that is not owned by the public company, but is allowed to be consolidated in the financial statements because it is controlled through agreements.
GigaMedia (GIGM) had those agreements with T2CN, which almost ruined the company. For the details I recommend reading the article noted above.
A lot of positive things have happened and many things have still to be done.
In December 2011 GigaMedia announced the sale of its problematic subsidiary T2CN for a cash payment of $4,738,588. In connection with the sale of its ownership interest in T2CN, GigaMedia has entered into a settlement agreement to resolve all of its civil legal disputes with the former head of its Asian online game and service business in China and former Chief Executive Officer of T2CN, Wang Ji. On December 14, 2011, the settlement agreement was finalized. As a result of the settlement agreement, each civil action has been or will be withdrawn or dismissed. A relief for GigaMedia at the end of last year.
This year began with an announcement on January 2 that its Chinaonline games platform Jidi Joy acquired a specialized Web-based social games development team in Shanghai and expects to roll out the first of its new proprietary social network games in March 2012 .
"We are making rapid progress in China , positioning ourselves to benefit from two powerful market forces in online games: the ongoing shift into Web and mobile platforms and the continued strong popularity and growth of social games," stated Jidi Joy Chief Executive Officer John Huen . "Web-based and social games are projected by industry analysts to grow at up to triple-digit rates in China - faster than traditional client-based or PC games."
The best news came in the same week with the announcement of John Stringer as new CEO. John is a veteran technology executive with 25 years of senior leadership experience and an exceptional track record of driving strong growth and profitability in companies such as Wyse Technology and Network Associates. And because GigaMedia regained compliance with NASDAQ's minimum bid price listing requirements this month, a reverse split is also not necessary anymore.
In a press release on February 10, Mr. Stringer gave some insight into his strategy. The company's turnaround plans are based on an explicit decision-making framework with clear objectives: Effectively managing cash, maintaining the company's listing on NASDAQ, and executing a new strategic growth plan.
Additional details on new management's turnaround plans will be presented in the second half of March.
Friday's news was also quite positive. GigaMedia announced that it is seeking to sell some of the company's assets in the first half of 2012. The planned disposals are intended to free up approximately US$30-US$40 million for investment in new strategic growth initiatives.
Final note
As you can see, the company is still in a turnaround situation which will take another year to seed. Every weak moment in the stock price is, in my opinion, a great entry point. I am convinced that John Stringer is the right man in the right place at the right time.
Followed the chatter. B'marked.
NP ScovilleUnits,
GL on your interest in GIGM!
GLTA
Bob
FYI Bob22701, post #413 deleted upon my request.
I misunderstood your PM last night. I submitted a request to Admins this morning asking that it be removed. Sorry for the misunderstanding.
GLTY
Scov
GigaMedia: Divestment Plans Underway
http://ih.advfn.com/p.php?pid=nmona&article=51254903
Date : 02/17/2012 @ 8:30PM
GigaMedia Limited (NASDAQ: GIGM) ("GigaMedia") today announced that new management is seeking to sell certain of the company's assets in the first half of 2012. The planned disposals are intended to free up approximately US$30-US$40 million for investment in new strategic growth initiatives, in line with GigaMedia's turnaround plans.
The company's turnaround plans, driven by CEO John Stringer, are based on an explicit decision-making framework with clear objectives: effectively managing cash, maintaining the company's listing on NASDAQ, and executing a new strategic growth plan.
Part of efforts to better manage cash and increase focus, new Giga's disposal and asset optimization program targets investments made in certain game studios in Asia, as well as underperforming assets. Multiple publicly-listed game studios in GigaMedia's investment portfolio have grown in value. While past results are not a guarantee of future performance of these investments, based on current market values of GigaMedia's shareholdings management believes it has a reasonable expectation of generating cash proceeds of approximately US$30-US$40 million exclusively from sales of its interests in these publicly-listed game studios.
Additional details on new management's turnaround plans will be provided going forward, including on GigaMedia's fourth-quarter conference call, anticipated in the second half of March.
GLTA,
Scov
GIGM - GigaMedia Updates Fourth-Quarter 2011 Guidance
News Link
GLTA
Bob
GIGM achieves $1.00 minimum bid compliance w/NASDAQ
Thinking a NASDAQ public notice of achieving compliance with the Minimum Bid Price Rule is pending?
Days Date Open High Low Close Volume Adj.Close
10 2012/02/08 1.42 1.42 1.14 1.20 632,132 1.20
9 2012/02/07 1.43 1.43 1.31 1.36 368,659 1.36
8 2012/02/06 1.49 1.49 1.36 1.40 256,764 1.40
7 2012/02/03 1.49 1.49 1.36 1.49 919,623 1.49
6 2012/02/02 1.22 1.36 1.21 1.34 587,332 1.34
5 2012/02/01 1.14 1.20 1.12 1.19 262,762 1.19
4 2012/01/31 1.08 1.11 1.07 1.11 190,912 1.11
3 2012/01/30 1.02 1.06 1.02 1.05 89,481 1.05
2 2012/01/27 1.01 1.03 1.00 1.01 313,175 1.01
1 2012/01/26 1.00 1.02 0.98 1.00 263,688 1.00
2012/01/25 0.98 1.00 0.97 0.98 57,034 0.98
2012/01/24 0.96 0.99 0.96 0.97 26,929 0.97
2012/01/23 0.95 0.98 0.95 0.97 100,154 0.97
NASDAQ $1.00 10-day minimum bid compliant EOD Feb8?
Days Date Open High Low Close Volume Adj.Close
10 2012/02/08
9 2012/02/07
8 2012/02/06
7 2012/02/03
6 2012/02/02
5 2012/02/01 1.14 1.20 1.12 1.19 262,762 1.19
4 2012/01/31 1.08 1.11 1.07 1.11 190,912 1.11
3 2012/01/30 1.02 1.06 1.02 1.05 89,481 1.05
2 2012/01/27 1.01 1.03 1.00 1.01 313,175 1.01
1 2012/01/26 1.00 1.02 0.98 1.00 263,688 1.00
GIGM - GigaMedia: New CFO Dirk Chen
News Link
GLTA
Bob
Watch out for a run IMO off Facebook with GIGM'S social media side
We are creeping up daily low volume
love it
http://stockcharts.com/h-sc/ui?s=gigm
50 day curling a bit--has flattened
We are so under radar Bob
Once it break 50 day and hold we are off
I am accumulating here
50 day at 86-87
GIGM - Interesting day today.
How much interest will the PR from yesterday bring with so many eyes on gaming companies?
GLTA
Bob
GIGM - GigaMedia: Strengthened China Operations to Begin Game Testing in March
News Link
GLTA
Bob
GIGM - 2010 Annual Report:
2010 Annual Report Link
GLTA
Bob
GIGM - SEC Filings:
SEC Filings Link
GLTA
Bob
Book Value 4$
Balance Sheet
Total Cash (mrq): 52.64M
Total Cash Per Share (mrq): 0.99
Total Debt (mrq): 12.68M
Total Debt/Equity (mrq): 6.28
Current Ratio (mrq): 1.93
Book Value Per Share (mrq): 3.82
Stock has been waiting years for legalization of online gambling
http://finance.yahoo.com/news/gambling-gets-boost-obama-administration-223603723.html
I know this stock well
http://www.pokerpulse.com/aboutGIGM.php
GIGM also has 5 million more in cash not calculated
http://finance.yahoo.com/news/GigaMedia-Announces-Sale-T2CN-prnews-2094254756.html?x=0
nice! and climbing^^
Obama OK's online gambling in states
EmailPrint
By TIM MAK | 12/26/11 9:19 AM EST
Merry Christmas to the online gambling industry.
The Obama administration has cleared the way for states to legalize online poker and other forms of virtual gambling with the release of a new interpretation of the law, reports the Associated Press.
The Justice Department opinion, dated September but only released Friday, holds that the Wire Act of 1961 does not make it illegal for states to use the internet to sell lottery tickets to adults.
Previously, the Justice Department has held that wagers through telecommunications that cross state lines or international borders were illegal.
The question at issue in the Justice Department’s decision was confined to whether states like Illinois and New York could sell lottery tickets online to in-state adults, but the principles behind the DoJ’s decision has wide-ranging effects throughout the industry.
The Justice Department said that the “ordinary meaning of the phrase ‘sporting event or contest’ does not encompass lotteries,” which sparks a precedent in interpretation that could free up states to legalize other forms of virtual gambling.
“The United States Department of Justice has given the online gaming community a big, big present,” said I. Nelson Rose, a gaming law expert who consults for governments and the industry, according to the AP
Read more: http://www.politico.com/news/stories/1211/70857.html#ixzz1hg598B3X
GigaMedia Announces Resignation of President and Chief Operating Officer
Tuesday , November 08, 2011 03:30ET
TAIPEI, Taiwan, Nov. 8, 2011 /PRNewswire-Asia/ -- GigaMedia Limited (NASDAQ: GIGM) announced today that President and Chief Operating Officer Thomas Hui has tendered his resignation; his term of office will end on December 31, 2011. The company also announced that Mr. Hui has resigned from GigaMedia's board, effective immediately.
Mr. Hui intends to devote more time to his personal interests and to charitable projects.
Mr. Hui's duties will be assumed by senior officers of GigaMedia who will begin working closely with Mr. Hui to ensure that a smooth transition occurs.
"Thomas has had an enormous influence on GigaMedia, making strong contributions to the strategy and growth of GigaMedia for three quarters of a decade," stated GigaMedia Chief Executive Officer Yichin Lee. "His passion for building high-performing teams will have a lasting impact on GigaMedia, and on behalf of the company I would like to thank him for his invaluable service. We wish him the best in his future."
"On behalf of the whole board, I would like to thank Thomas for his service and dedication in the past seven years," stated GigaMedia Chairman Michael Ding. "Thomas leaves GigaMedia with great financial resources to further develop our business, and we look forward to delivering a new era of growth and creating new value for our shareholders."
Mr. Hui joined GigaMedia as Chief Financial Officer in August 2004 and became President and Chief Operating Officer in August 2007.
About GigaMedia
GigaMedia Limited (Singapore registration number: 199905474H) is a major provider of online entertainment software and services. Through its subsidiaries, GigaMedia develops and operates a suite of online games in Asia, covering all regions of Greater China and Southeast Asia. More information on GigaMedia can be obtained from www.gigamedia.com.
BuyBack?
3/26/2012 to regain compliance…$1.00/share ten consecutive days.
GigaMedia Receives Nasdaq Notification of Non-Compliance with Minimum Bid Price Rule
Friday , September 30, 2011 20:00ET
TAIPEI, Taiwan, Sept. 30, 2011 /PRNewswire-Asia-FirstCall/ -- GigaMedia Limited (NASDAQ: GIGM) announced today that on September 29, 2011 it received a letter from The Nasdaq Stock Market stating that for the previous 30 consecutive business days, the bid price of the company's common stock closed below the minimum $1.00 per share requirement for continued inclusion on the Nasdaq Global Market pursuant to Nasdaq Marketplace Rule 5450(a)(1) (the "Minimum Bid Price Rule"). The Nasdaq letter has no immediate effect on the listing of the company's common stock.
In accordance with Nasdaq Marketplace Rule 5810(c)(3)(A), GigaMedia has been provided a grace period of 180 calendar days, or until March 26, 2012, to regain compliance by maintaining a closing bid price of at least $1.00 per share for a minimum of ten consecutive business days. If at any time before March 26, 2012, the bid price of the company's common stock closes at $1.00 per share or more for a minimum of ten consecutive business days, Nasdaq will notify the company that it has achieved compliance with the Minimum Bid Price Rule.
If the company does not regain compliance with the Minimum Bid Price Rule by March 26, 2012, Nasdaq will notify the company that its common stock will be delisted from The Nasdaq Global Market. In the event the company receives notice that its common stock is being delisted from The Nasdaq Global Market, Nasdaq rules permit the company to appeal any delisting determination by the Nasdaq staff to a Nasdaq Hearings Panel. Alternatively, Nasdaq may permit the company to transfer its common stock to The Nasdaq Capital Market if it satisfies the requirements for initial inclusion set forth in Marketplace Rule 5505, except for the bid price requirement. If its application for transfer is approved, the company would have an additional 180 calendar days to comply with the Minimum Bid Price Rule in order to remain on The Nasdaq Capital Market.
The company intends to actively monitor the closing bid price of its common stock between now and March 26, 2012 and will evaluate available options to resolve the deficiency and regain compliance with the Minimum Bid Price Rule.
NASDAQ's $1.00/30-day deficiency notice starts today?
Days Date Open High Low Close Volume Adj.Close
30 9/27/2011 0.88 0.92 0.87 0.92 346,512 0.92
29 2011/09/26 0.88 0.90 0.87 0.87 241,263 0.87
28 2011/09/23 0.89 0.90 0.89 0.89 314,228 0.89
27 2011/09/22 0.90 0.90 0.87 0.88 468,890 0.88
26 2011/09/21 0.93 0.97 0.90 0.90 297,436 0.90
25 2011/09/20 0.89 0.95 0.87 0.93 457,072 0.93
24 2011/09/19 0.83 0.90 0.83 0.89 479,701 0.89
23 2011/09/16 0.86 0.86 0.83 0.83 300,947 0.83
22 2011/09/15 0.80 0.87 0.80 0.87 464,357 0.87
21 2011/09/14 0.80 0.82 0.80 0.80 320,773 0.80
20 2011/09/13 0.81 0.81 0.80 0.80 349,250 0.80
19 2011/09/12 0.82 0.83 0.82 0.82 294,220 0.82
18 2011/09/09 0.83 0.84 0.82 0.83 260,007 0.83
17 2011/09/08 0.84 0.85 0.82 0.84 394,800 0.84
16 2011/09/07 0.86 0.86 0.84 0.84 513,420 0.84
15 2011/09/06 0.85 0.87 0.85 0.86 313,236 0.86
14 2011/09/05 0.86 0.88 0.86 0.88 235,334 0.88
13 2011/09/02 0.86 0.88 0.81 0.88 235,334 0.88
12 2011/09/01 0.91 0.91 0.86 0.86 378,422 0.86
11 2011/08/31 0.88 0.90 0.87 0.90 262,659 0.90
10 2011/08/30 0.87 0.93 0.87 0.88 383,613 0.88
9 2011/08/29 0.88 0.89 0.87 0.88 284,883 0.88
8 2011/08/26 0.88 0.89 0.86 0.88 233,806 0.88
7 2011/08/25 0.93 0.93 0.86 0.89 393,634 0.89
6 2011/08/24 0.94 0.94 0.92 0.92 99,899 0.92
5 2011/08/23 0.92 0.95 0.91 0.95 144,909 0.95
4 2011/08/22 0.94 0.94 0.92 0.92 272,334 0.92
3 2011/08/19 0.92 0.97 0.91 0.93 201,746 0.93
2 2011/08/18 0.95 0.97 0.94 0.94 175,611 0.94
1 2011/08/17 0.99 1.01 0.95 0.97 156,326 0.97
2011/08/16 1.05 1.05 0.96 1.00 195,912 1.00
2011/08/15 0.98 1.04 0.96 1.04 165,683 1.04
Can GIGM close at/above $1.00 by EOD 9/27?
Recent activity indicates that something seems to want it to.
Days Date Open High Low Close Volume Adj.Close
30 2011/09/27
29 2011/09/26
28 2011/09/23
27 2011/09/22
26 2011/09/21
25 2011/09/20 0.89 0.95 0.87 0.93 457,072 0.93
24 2011/09/19 0.83 0.90 0.83 0.89 479,701 0.89
23 2011/09/16 0.86 0.86 0.83 0.83 300,947 0.83
22 2011/09/15 0.80 0.87 0.80 0.87 464,357 0.87
21 2011/09/14 0.80 0.82 0.80 0.80 320,773 0.80
20 2011/09/13 0.81 0.81 0.80 0.80 349,250 0.80
19 2011/09/12 0.82 0.83 0.82 0.82 294,220 0.82
18 2011/09/09 0.83 0.84 0.82 0.83 260,007 0.83
17 2011/09/08 0.84 0.85 0.82 0.84 394,800 0.84
16 2011/09/07 0.86 0.86 0.84 0.84 513,420 0.84
15 2011/09/06 0.85 0.87 0.85 0.86 313,236 0.86
14 2011/09/05 0.86 0.88 0.86 0.88 235,334 0.88
13 2011/09/02 0.86 0.88 0.81 0.88 235,334 0.88
12 2011/09/01 0.91 0.91 0.86 0.86 378,422 0.86
11 2011/08/31 0.88 0.90 0.87 0.90 262,659 0.90
10 2011/08/30 0.87 0.93 0.87 0.88 383,613 0.88
9 2011/08/29 0.88 0.89 0.87 0.88 284,883 0.88
8 2011/08/26 0.88 0.89 0.86 0.88 233,806 0.88
7 2011/08/25 0.93 0.93 0.86 0.89 393,634 0.89
6 2011/08/24 0.94 0.94 0.92 0.92 99,899 0.92
5 2011/08/23 0.92 0.95 0.91 0.95 144,909 0.95
4 2011/08/22 0.94 0.94 0.92 0.92 272,334 0.92
3 2011/08/19 0.92 0.97 0.91 0.93 201,746 0.93
2 2011/08/18 0.95 0.97 0.94 0.94 175,611 0.94
1 2011/08/17 0.99 1.01 0.95 0.97 156,326 0.97
2011/08/16 1.05 1.05 0.96 1.00 195,912 1.00
2011/08/15 0.98 1.04 0.96 1.04 165,683 1.04
AW Out, Bob "In Play"
DO we believe again?
Book Value I is above 3
Question is: did AW leave before possible accounting issues or is this beginning of another turnaround
Time will tell
Total Cash (mrq): 65.66M
Total Cash Per Share (mrq): 1.17
Total Debt (mrq): 13.22M
Total Debt/Equity (mrq): 6.67
Current Ratio (mrq): 1.97
Book Value Per Share (mrq): 3.57
http://finance.yahoo.com/news/Viacom-International-Media-prnews-3896822874.html?x=0&.v=1
Lets see if "a" timeline is hit
Nice that AW is out!
Btw--no sheezy over here :)
Current bid $0.05 on Jan 1.5 call option, 100 contracts. This person must be pretty bullish. I find it difficult to justify any bid price at all that far out of the money in January. For this person to turn a profit, the option needs a bid of at least a dime before it expires, and a dime in the money would be at a stock price of $1.60.
That would be a double from the current price in only 4 months. Of course, the cash value of 100 contracts at a nickel is only $500 so this could actually just be a stupid retail investor, but unless there is a strong rally in the stock, this investor would have a 100% loss on this buy. Yet the bid is there, so SOMEBODY is quite bullish I would say.
Either this person is very stupid or believes he knows something I am certainly not seeing. I hope it is the latter and I hope he is right ane makes a killing because that means all us longs will make back some of our losses.
Most people have probably forgotten that when GIGM sold 60% of its gaming business to another investor, the other investor also had a call option to purchase the rest of the gaming business, but also GIGM had a put option to PUT the remainder of the gaming business to THEM.
If only we knew the details of this put option, the company MUST have a value of at least the amount of the put even if they squander all of their cash as long as no fraud is found. I have a feeling we may be already trading below this floor, which is one reason I continue to hold.
GIGM:Q2 Adj EPS (3c)..vs..(10c) EPS +70% Y/Y
Monday , August 15, 2011 16:35ET
QUARTER RESULTS
GigaMedia Limited (GIGM) reported Q2 results ended June 2011. Q2 Revenues were $8.80M; -15.56% vs yr-ago. Q2 EPS was (12c). Adjusted Q2 EPS was (3c); +70.00% vs yr-ago.
ORIGINAL EARNINGS RELEASE: http://www.knobias.com/story.htm?eid=3.1.04ea4c587a25e2d86e74f56a71002c5e64106265b4ad56a233e757b7f56eca9eQ2 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $8.80M $10.42M -15.56% N/A N/A
---------- ------------ ------------ ---------- ------------ ----------
EPS: (12c) N/A N/A N/A N/A
Adj EPS: (3c) (10c) +70.00% N/A N/A
---------- ------------ ------------ ---------- ------------ ----------
Confirmed Earnings Expected Monday, Aug 15 AMC
http://www.knobias.com/story.htm?eid=3.1.1fd6418a0427a6074ef11c23091d68a8f7a2191dc64b6940c4ea2400738427cc
QUARTER RESULTS GigaMedia Limited (GIGM) reported Q1 results ended March 2011. Q1 Revenues were $10.40M; -71.96% vs yr-ago. Q1 EPS was (2c); -100.00% vs yr-ago.
Q1 RESULTS Reported Year-Ago Y/Y Chg Estimate SURPRISE
---------- ------------ ------------ ---------- ------------ ----------
Revenues: $10.40M $37.09M -71.96% N/A N/A
---------- ------------ ------------ ---------- ------------ ----------
EPS: (2c) (1c) -100.00% N/A N/A
---------- ------------ ------------ ---------- ------------ ----------
GigaMedia First-Quarter 2011 Revenues Up 17% to $10.4 Million
http://www.knobias.com/story.htm?eid=3.1.3331a3266ce2eb74230b545dd43a177e024f22fddb45369d6c06bc7525eb5acc
TAIPEI, Taiwan, May 25, 2011 /PRNewswire-Asia-FirstCall/ -- GigaMedia Limited (NASDAQ: GIGM) today announced first-quarter 2011 revenues of $10.4 million, up 17 percent quarter-over-quarter.
First-quarter 2011 core net loss was $975 thousand; core basic and fully-diluted loss per share were each $0.02. (1)
"We are making good progress in turning around our Asian online games business," stated GigaMedia Chief Executive Officer Yichin Lee. "We delivered solid top-line growth this quarter from our current game portfolio and began to more effectively control costs."
"In coming quarters we are adding new games via a very careful selection process, and we will continue controlling costs to put our business back on track and improve financial performance for 2011," stated CEO Yichin Lee. "We also expect to add significant value to our balance sheet this year through disposal of investments in certain game-related assets."
"Going forward, we are focusing on developing a sustainable competitive advantage for GigaMedia as a top-notch game publisher," stated CEO Yichin Lee. "We are reorganizing our resources and investing to create a tournament platform for competition-centric games, which lend themselves to tournaments, combining on-line games with off-line activities."
"We will build this platform to extend across markets, leveraging our expertise and assets," stated CEO Yichin Lee. "An on-line plus off-line tournament platform, extended across Asia, geared for Web-based and mobile games and integration with social networks, will drive better monetization and operating efficiencies for all our games."
Note:
1. Core net loss and core basic and fully-diluted loss per share are
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.
Overview
-- Taiwan and Hong Kong: successful commercialization of the new game
A.V.A. and solid casual games performance drove revenues up 35 percent
quarter-over-quarter; new Web-based and iPad MahJong products
successfully launched - initial steps in strategic platform extension to
mobile and Web-based games.
-- Southeast Asia: consolidation of Thai subsidiary drove online game
revenues up 37 percent quarter-over-quarter; FIFA Online 2 currently in
testing in Indonesia.
-- Investments ongoing in new China platform while continuing to pursue all
means to resolve the dispute in connection with the China-based business
T2CN.
-- Cost cutting initiatives continue; delivered 52 percent reduction in
corporate operating expenses quarter-over-quarter.
-- Corporate update: 1) board-approved share buyback of up to $11 million
announced May 23; 2) management planning the disposal of certain game
developer investments in 2011 to realize gains and crystallize value on
GigaMedia's balance sheet; and 3) company positioned for upside
potential from remaining 40 percent interest in Mangas Everest; recent
losses reflect ongoing investments.
Consolidated Financial Results
GigaMedia Limited is a major provider of online entertainment software and services, developing and operating a suite of online games in Asia covering the regions of Greater China and Southeast Asia. GigaMedia also retains a 40 percent equity interest in Mangas Everest ("Everest Gaming").
GIGAMEDIA 1Q11 CONSOLIDATED FINANCIAL
RESULTS
(unaudited,
all
figures
in US$
thousands,
except
per
share Change Change
amounts) 1Q11 1Q10 (%) 1Q11 4Q10 (%)
Revenues
(A) 10,422 37,086 -72 10,422 8,903 17
Gross
Profit
(A) 5,761 29,243 -80 5,761 2,821 104
Loss from
Operations
(A) (2,684) 3,632 NA (2,684) (34,668) NA
Income
(Loss)
from
Continuing
Operations
(A) (5,199) 3,213 NA (5,199) (44,598) NA
Net
Income
(Loss)
Attributable
to
GigaMedia (5,155) 1,316 NA (5,155) (41,255) NA
Net
Income
(Loss)
Per
Share,
Diluted (0.09) 0.02 NA (0.09) (0.73) NA
Core
Income
(Loss)
from
Operations(A)(B) (1,906) 399 NA (1,906) (6,087) NA
Core Net
Loss (A)
(B) (975) (287) NA (975) (8,009) NA
Core Net
Loss Per
Share,
Diluted
(A) (B) (0.02) (0.01) NA (0.02) (0.14) NA
EBITDA(C) (3,976) 2,856 NA (3,976) (40,347) NA
Cash,
Cash
Equivalents,
Restricted
Cash,
and
Marketable
Securities-
Current 72,924 63,666 15 72,924 79,541 -8
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
3/31/2011 12/31/2010 3/31/2010
--------- ---------- ---------
unaudited unaudited unaudited
--------- --------- ---------
USD USD USD
--- --- ---
Operating revenues
Gaming software and
service revenues 0 0 25,820,083
Asian online game and
service revenues 10,422,104 8,902,652 11,265,486
---------- --------- ----------
10,422,104 8,902,652 37,085,569
---------- --------- ----------
Operating costs
Cost of gaming
software and service
revenues 0 0 4,009,650
Cost of Asian online
game and service
revenues (includes
share-based
compensation
expenses under ASC
718 of $73, ($798)
and, $6,364,
respectively) 4,661,556 6,081,326 3,832,994
--------- --------- ---------
4,661,556 6,081,326 7,842,644
--------- --------- ---------
Gross profit 5,760,548 2,821,326 29,242,925
--------- --------- ----------
Operating expenses
Product development
and engineering
expenses (includes
share-based
compensation
expenses under ASC
718 of $3,886,
($7,079), and
$1,882,
respectively) 369,912 549,410 3,773,776
Selling and marketing
expenses (includes
share-based
compensation
expenses under ASC
718 of $15,113,
($17,747) and
$17,304,
respectively) 2,887,726 2,512,633 14,828,825
General and
administrative
expenses (includes
share-based
compensation
expenses under ASC
718 of $458,043,
$404,353 and
$453,352,
respectively) 5,164,946 6,734,875 6,945,961
Bad debt expenses 21,901 1,436,207 62,572
Impairment losses 0 4,016,442 0
Impairment loss on
T2CN operating
entites 0 22,234,363 0
Other 0 5,892 0
--- ----- ---
8,444,485 37,489,822 25,611,134
--------- ---------- ----------
Income (loss) from
operations -2,683,937 -34,668,496 3,631,791
---------- ----------- ---------
Non-operating income
(expense)
Interest income 227,244 495,998 114,076
Interest expense -79,830 49,475 -109,471
Foreign exchange gain
(loss) -net 5,529 -364,526 -57,562
Loss on disposal of
property, plant and
equipment -924 -18,257 16
Loss on equity method
investments -net -2,419,071 -15,529,564 0
Gain on
deconsolidation of
gaming software and
service business 0 3,312,756 0
Impairment loss on
marketable
securities and
investments 0 -2,277 0
Gain on fair value
changes of warrant
derivative 0 2,595,219 0
Other 19,432 39,211 36,098
------ ------ ------
-2,247,620 -9,421,965 -16,843
---------- ---------- -------
Income (loss) from
continuing
operations before
income taxes -4,931,557 -44,090,461 3,614,948
Income tax expense -267,209 -507,283 -402,332
-------- -------- --------
Income (loss) from
continuing
operations -5,198,766 -44,597,744 3,212,616
Income from
discontinued
operations 34,555 33,904 30,688
------ ------ ------
Net income (loss) -5,164,211 -44,563,840 3,243,304
Less: Net loss
(income)
attributable to
noncontrolling
interest and
subsidiary preferred
shares 9,350 3,308,927 -1,927,141
----- --------- ----------
Net income (loss)
attributable to
GigaMedia -5,154,861 -41,254,913 1,316,163
========== =========== =========
Earnings (loss) per
share attributable
to GigaMedia
Basic:
(Loss) income from
continuing
operations -0.09 -0.73 0.02
(Loss) income from
discontinued
operations 0.00 0.00 0.00
---- ---- ----
-0.09 -0.73 0.02
===== ===== ====
Fully-diluted:
(Loss) income from
continuing
operations -0.09 -0.73 0.02
(Loss) income from
discontinued
operations 0.00 0.00 0.00
---- ---- ----
-0.09 -0.73 0.02
===== ===== ====
Weighted average
shares outstanding:
Basic 56,272,341 56,261,901 55,104,109
========== ========== ==========
Diluted 58,226,440 58,992,728 59,175,974
========== ========== ==========
GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
3/31/2011 12/31/2010 3/31/2010
--------- ---------- ---------
unaudited unaudited unaudited
--------- --------- ---------
USD USD USD
--- --- ---
Assets
Current assets
Cash and cash equivalents 64,362,331 70,988,577 59,236,072
Marketable securities - current 3,561,868 3,552,920 3,497,308
Accounts receivable - net 11,137,164 9,505,663 4,209,972
Prepaid expenses 2,449,338 1,996,659 1,229,256
Restricted cash 5,000,000 5,000,000 932,407
Assets held for sale - current 0 0 32,215,788
Other receivables 781,676 991,800 1,143,927
Other current assets 2,256,201 1,052,010 4,539,066
--------- --------- ---------
Total current assets 89,548,578 93,087,629 107,003,796
Marketable securities - noncurrent 39,368,558 33,388,752 20,784,913
Investments 63,914,232 66,773,523 3,490,550
Retained ownership of gaming software
and service business 0 0 24,999,803
Property, plant & equipment - net 5,321,698 5,301,678 5,595,457
Goodwill 39,221,185 39,492,651 44,577,726
Intangible assets - net 19,229,917 19,769,323 18,518,116
Assets held for sale - noncurrent 0 0 32,551,937
Prepaid licensing and royalty fees 6,570,466 4,213,553 5,437,977
Other assets 5,378,566 5,561,716 1,322,880
--------- --------- ---------
Total assets 268,553,200 267,588,825 264,283,155
=========== =========== ===========
Liabilities & equity
Accounts payable 5,318,366 4,305,186 641,964
Accrued compensation 2,912,535 4,239,051 1,877,985
Accrued expenses 11,340,289 10,985,777 7,005,359
Short-term borrowings 12,947,984 12,413,465 22,641,268
Liabilities held for sale - current 0 0 25,970,354
Other current liabilities 10,991,439 11,349,536 13,349,593
---------- ---------- ----------
Total current liabilities 43,510,613 43,293,015 71,486,523
Liabilities held for sale - noncurrent 0 0 1,297,665
Other liabilities 7,929,442 7,729,586 159,633
--------- --------- -------
Total liabilities 51,440,055 51,022,601 72,943,821
---------- ---------- ----------
Subsidiary preferred shares 1,545,115 1,464,791 0
--------- --------- ---
GigaMedia's shareholders' equity 218,603,268 217,521,137 188,426,066
Noncontrolling interest -3,035,238 -2,419,704 2,913,268
---------- ---------- ---------
Total equity 215,568,030 215,101,433 191,339,334
----------- ----------- -----------
Total liabilities & equity 268,553,200 267,588,825 264,283,155
=========== =========== ===========
GIGAMEDIA LIMITED
Reconciliations of Non-GAAP Results of Operations
Three months ended
3/31/2011 12/31/2010
--------- ----------
unaudited unaudited
--------- ---------
USD USD
--- ---
I. Income (loss) from operations:
GAAP result -2,683,937 -34,668,496
Adjustments:
(a) share-based
compensation 477,115 378,729
(b) bad debt expenses
related to T2CN 0 1,404,882
(c) impairment loss on
capitalized software
costs 0 1,759,818
(d) impairment loss on
goodwill 0 2,254,992
(e) impairment loss on
T2CN operating entites 0 22,234,363
(f) financial results
related to gambling
software business 300,709 548,939
------- -------
Core income (loss) from
operations (Non-GAAP
result) -1,906,113 -6,086,773
========== ==========
Net income (loss) attributable to
II. GigaMedia:
GAAP result -5,154,861 -41,254,913
Adjustments:
(a) share-based
compensation 467,735 382,207
(b) bad debt expenses
related to T2CN 0 1,404,882
(c) impairment loss on
capitalized software
costs 0 1,424,874
(d) impairment loss on
goodwill 0 1,803,994
(e) impairment loss on
T2CN operating entites 0 22,234,363
(f) impairment loss on
Blizzard games recorded
in equity method
investments 0 10,571,882
(g) gain on
deconsolidation of
gaming software and
service business, net of
taxes 0 -3,271,468
(h) other non-operating
income 0 -2,076,175
(i) income from
discontinued operations -34,555 -33,904
(j) financial results
related to gambling
software business 3,746,976 805,369
--------- -------
Core net loss (Non-GAAP
result) -974,705 -8,008,889
======== ==========
Basic earnings (loss) per share
III. attributable to GigaMedia:
GAAP result -0.09 -0.73
Adjustments 0.07 0.59
---- ----
Core basic EPS (Non-
GAAP result) -0.02 -0.14
===== =====
Diluted earnings (loss) per share
IV. attributable to GigaMedia:
GAAP result -0.09 -0.73
Adjustments 0.07 0.59
---- ----
Core diluted EPS (Non-
GAAP result) -0.02 -0.14
===== =====
Reconciliation of Net Income (Loss)
V. to EBITDA
Net income (loss)
attributable to
GigaMedia -5,154,861 -41,254,913
Depreciation 555,296 459,097
Amortization 566,890 683,734
Interest (income) expense -183,553 -625,730
Tax expense 240,112 390,556
EBITDA -3,976,116 -40,347,256
========== ===========
Three months ended
3/31/2010
---------
unaudited
---------
USD
---
I. Income (loss) from operations:
GAAP result 3,631,791
Adjustments:
(a) share-based
compensation 478,902
(b) bad debt expenses
related to T2CN 0
(c) impairment loss on
capitalized software
costs 0
(d) impairment loss on
goodwill 0
(e) impairment loss on
T2CN operating entites 0
(f) financial results
related to gambling
software business -3,711,692
Core income (loss) from
operations (Non-GAAP
result) 399,001
=======
Net income (loss) attributable to
II. GigaMedia:
GAAP result 1,316,163
Adjustments:
(a) share-based
compensation 452,368
(b) bad debt expenses
related to T2CN 0
(c) impairment loss on
capitalized software
costs 0
(d) impairment loss on
goodwill 0
(e) impairment loss on
T2CN operating entites 0
(f) impairment loss on
Blizzard games recorded
in equity method
investments 0
(g) gain on
deconsolidation of
gaming software and
service business, net
of taxes 0
(h) other non-operating
income 0
(i) income from
discontinued operations -30,688
(j) financial results
related to gambling
software business -2,024,611
Core net loss (Non-
GAAP result) -286,768
========
Basic earnings (loss) per share
III. attributable to GigaMedia:
GAAP result 0.02
Adjustments -0.03
Core basic EPS (Non-
GAAP result) -0.01
=====
Diluted earnings (loss) per share
IV. attributable to GigaMedia:
GAAP result 0.02
Adjustments -0.03
Core diluted EPS (Non-
GAAP result) -0.01
=====
Reconciliation of Net Income (Loss)
V. to EBITDA
Net income (loss)
attributable to
GigaMedia 1,316,163
Depreciation 495,962
Amortization 662,966
Interest (income)
expense 85,455
Tax expense 295,568
EBITDA 2,856,114
=========
In the first quarter of 2011, management anticipates a double-digit quarterly sequential increase in revenues and expects a quarterly sequential decrease in total operating expenses.
1. Gigamedia (NASDAQ: GIGM): The company reported its earnings during the first week of May, and the expected full write down of the T2CN business severely affected results, along with an unexpected write down of the IAHGames business regarding poor Blizzard game results.
Business results at Funtown and IAHgames were better than expected, but certainly for a company which is focusing on building this as the center of their operations, much improvement is needed. I was encouraged by management’s comments about selling passive stakes in studios to generate cash, as well as possibly buying back stock and meeting with investors in New York.
Also, it is encouraging management has not given up on getting back the T2CN business in China. It makes no sense to build a business there and have it stolen underneath you, and then give up on getting it back. Certainly, management needs to go out of its way to improve its credibility with the investment community and they have to start somewhere.
More importantly, their comments about releasing the SpongeBob Squarepants game (partnering with MTV) soon is also encouraging for shareholders because hopefully it will improve results in their area of focus, the Asian Gaming business.
Finally, management indicated they are working on improving their Mahjong offerings and are encouraged by the AVA releases through IAHgames, with an additional country added soon. All in all, I am waiting to see what transpires with the new games, stock buyback, efforts to get back the China business, and improve their existing Asian business as any of these developments can be positive for the stock.
http://blog.covestor.com/2011/05/six-stocks-i-own-and-why-yale-bock-gigm-dgi-clgx
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About GigaMedia Limited:
GigaMedia Limited, (Singapore registration number: 199905474H) – (NASDAQ:GIGM), is a major provider of online entertainment software and services. GigaMedia develops and licenses software for online gaming. GigaMedia also operates online games businesses including FunTown, a leading Asian casual games operator and the world's largest online MahJong game site in terms of revenue, and T2CN, a leading online sports game operator in China. More information on GigaMedia can be obtained from http://www.gigamedia.com.tw .
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