Highlights of Third-Quarter 2006 Results
-- Consolidated revenues from continuing operations up 118 percent year-
over-year to $24.2 million.
-- Consolidated operating income from continuing operations grew 441
percent year-over-year to $6.0 million.
-- Consolidated EBITDA(1) grew 168 percent year-over-year to $8.1 million.
-- Consolidated net income climbed 278 percent year-over-year to $6.5
million. Basic and fully-diluted earnings per share were $0.13 and
$0.11, respectively.
-- Cash, cash equivalents and marketable securities-current of $35.1
million.
Note:
(1) 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.
GigaMedia Limited (''GigaMedia'' or the ''Company'') (Nasdaq: GIGM) announced today strong results with third-quarter 2006 consolidated net income climbing 278 percent to $6.5 million, or $0.13 per basic share and $0.11 per fully-diluted share, from the same period of 2005.
Consolidated revenues jumped 118 percent to $24.2 million and operating income climbed 441 percent to $6.0 million, both in comparison to the same period of last year.
Sequential growth in the third quarter over the second quarter of 2006 was also noteworthy -- operating income climbed 31 percent on consolidated revenue growth of 15 percent -- significant, as the third quarter is traditionally the weakest due to seasonality.
Continued strong growth in the Company's poker software products in Continental European markets and significant expansion in GigaMedia's consolidated operating margin drove the sharp increases in the Company's results, combined with the contribution from our Asian casual games business acquired in January.
''Our strong third-quarter performance is proof of the potential of our markets and the productivity of our team,'' stated CEO Arthur Wang. ''We continue to see strong momentum in our European markets driving continued strong growth.''
With respect to real-money MahJong and other Asian games, the expected third-quarter launch has been delayed due to uncertainties involving our potential partners brought about by changes in the online gaming environment in the United States.
GigaMedia has now entered into a preliminary agreement with a global leader in online gaming to deploy Giga's MahJong and other cash-wager Asian games and expects initial but limited revenue contribution in the fourth quarter.
''We believe our Asian gaming products will be big hits in the market and important growth drivers of GigaMedia in 2007,'' stated CEO Wang.
GigaMedia generates all its revenues from markets outside the United States, as has always been the Company's policy and practice.
Consolidated Financial Results
GIGAMEDIA 3Q06 CONSOLIDATED FINANCIAL RESULTS
(unaudited, 3Q06 3Q05 Change 3Q06 2Q06 Change
in US$ (%) (%)
thousands)
Revenues(A) 24,199 11,114 118 24,199 21,022 15
Operating
Income
(Loss) (A) 6,044 1,118 441 6,044 4,606 31
Net Income 6,512 1,724 278 6,512 11,232 -42
Net Income
Per Share,
Basic 0.13 0.03 313 0.13 0.22 -42
Net Income
Per Share,
Diluted 0.11 0.03 267 0.11 0.18 -39
EBITDA 8,088 3,023 168 8,088 13,581 -40
Cash, Cash
Equivalents
and
Marketable
Securities-
Current(A) 35,111 55,726 -37 35,111 30,749 14
(A) Excludes results from discontinued operations.
Consolidated revenues from continuing operations for the third quarter of 2006 were $24.2 million, a 118 percent increase from consolidated revenues from continuing operations of $11.1 million for the corresponding period in 2005, led by 157 percent growth in the Company's poker and traditional gaming software business and the acquisition of our MahJong and online Asian casual games business FunTown. Quarter-over-quarter, consolidated revenues were up 15 percent, primarily due to a 26 percent increase in poker and traditional gaming software segment revenues during the period.
Consolidated operating income from continuing operations for the third quarter of 2006 was $6.0 million, a 441 percent increase from the $1.1 million for the same period in 2005. Consolidated operating income from continuing operations grew 31 percent from the second quarter of 2006. Growth of our poker and traditional gaming software business and the acquisition of FunTown drove the year-over-year increase, with poker and traditional gaming software segment operating income increasing 203 percent to $4.7 million during the 12- month period. The strong increase in poker and traditional gaming software revenues and an improvement in the Company's overall operating margin to 25 percent drove the quarter-over-quarter increase in consolidated operating income from continuing operations. Selling and marketing expenses increased $1.1 million from the prior quarter to $7.5 million principally due to increases in our licensee's payments to marketing affiliates as a result of growing poker traffic and volume, as well as increased marketing initiatives surrounding the Everest brand.
Consolidated net income for the third quarter of 2006 was $6.5 million, a 278 percent increase compared to $1.7 million for the same period of 2005, and a decrease of 42 percent, or $4.7 million, from the second quarter of 2006. The quarter-over-quarter variation was primarily due to the impact of a one- time pre-tax gain of approximately $7.7 million (or $7.0 million, net of tax) recorded on the sale of the Company's ADSL business during the second quarter. Consolidated net profit in the third quarter included a one-time gain of approximately $627 thousand recorded for the early redemption of a convertible note related to the acquisition of FunTown.
GigaMedia also reports non-GAAP financial measures, including non-GAAP consolidated operating income from continuing operations, non-GAAP consolidated net income, and consolidated EBITDA. The non-GAAP measures are described below and reconciliations to the corresponding GAAP measures are included at the end of this release. (See, ''Use of Non-GAAP Measures" for more details.)
Non-GAAP consolidated operating income, excluding non-cash share-based compensation charges of $47 thousand, was $6.1 million in the third quarter of 2006, up 445 percent year-over-year. Non-GAAP consolidated net income in the third quarter, excluding non-cash share-based compensation charges of $47 thousand, was $6.6 million, representing an increase of 280 percent over the same period last year.
Consolidated EBITDA for the third quarter of 2006 was $8.1 million, up 168 percent from the corresponding period in 2005 and down 40 percent from the second quarter of 2006, which benefited from the one-time pre-tax gain of approximately $7.7 million (or $7.0 million, net of tax) recorded during the period. Net operating cash flow for the third quarter of 2006 was $8.0 million. Capital expenditure totaled $1.3 million for the third quarter of 2006, of which 58 percent was related to software capitalization.
GigaMedia continued to maintain a healthy balance sheet. At the end of the third quarter of 2006, cash, cash equivalents and marketable securities- current totaled $35.1 million, up from $30.7 million at the end of the second quarter of 2006. During the quarter, the Company made cash payments totaling approximately $15 million to redeem in full the convertible note related to our acquisition of FunTown. Such payments were financed by bank borrowings of approximately $10.8 million and operating cash flow during the period. Total loans amounted to $12.7 million at the end of the third quarter of 2006.
Business Unit Results
GigaMedia Limited conducts its online entertainment business in two business segments. The poker and traditional gaming software segment develops and licenses online gaming software solutions and application services, primarily targeting emerging Continental European markets. The MahJong and Asian online casual games segment offers a suite of online casual games, mainly targeting gamers in Greater China. A third segment, other businesses, consists of our legacy ISP operations in Taiwan.
Online Entertainment Business -- Poker and Traditional Gaming Software
(unaudited, 3Q06 3Q05 Change 3Q06 2Q06 Change
in US$ thousands) (%) (%)
Revenues 14,726 5,727 157 14,726 11,674 26
Operating Income 4,655 1,536 203 4,655 3,617 29
Net Income Before 4,553 1,516 200 4,553 3,567 28
Minority Interests
Net Income 4,537 1,334 240 4,537 3,383 34
EBITDA 5,061 1,675 202 5,061 3,850 31
The poker and traditional gaming software business delivered record revenues and profitability in the third quarter and continued to strengthen its position as a leading provider of gaming software in emerging Continental European markets. Focus on enhancing our native-language products and strong execution by management continued to generate significant growth, more than offsetting the negative impact of seasonality during the period.
The Company generates all its revenues from markets outside the United States. Therefore, GigaMedia anticipates no adverse financial impact from the passage of the Unlawful Internet Gambling Enforcement Act in the United States on October 13, 2006.
Revenues in the poker and traditional gaming software business increased 157 percent from the third quarter of 2005 to $14.7 million and grew 26 percent from the second quarter of 2006. Operating income grew 203 percent to $4.7 million from the same period in 2005, an increase of 29 percent compared to the second quarter of 2006, with operating margin increasing to 32 percent in the third quarter. Net income rose 240 percent from the third quarter of 2005 to $4.5 million, up 34 percent from the second quarter of 2006. EBITDA grew 202 percent to $5.1 million from the third quarter of 2005 and increased 31 percent quarter-over-quarter. Capital expenditure totaled $645 thousand for the third quarter of 2006.
Excluding revenues consolidated due to the requirements of FIN 46(R), GigaMedia's revenues from the entertainment software business were $7.6 million during the third quarter of 2006. This represented an increase of 149 percent from the third quarter of 2005 and a 30 percent increase from the second quarter of 2006.
Driving the strong year-over-year and quarter-over-quarter improvements were effective strategic growth initiatives. During the past 12 months we have committed significant resources to building a leading gaming platform with a highly scalable architecture, to expanding and enhancing our offerings, and to leveraging our first-mover advantage in poker in Continental Europe. Results of both our poker and traditional gaming software verticals have also continued to benefit from our licensee's ongoing development of the Everest brand, whose suite of gaming products powered by our software is rapidly gaining in popularity in the emerging markets of Continental Europe.
During the third quarter we completed significant code enhancements, scalability improvements and product upgrades, such as a player-to-player chip transfer function and hand history tracking, all to improve the overall gamer experience. Additionally, our licensee increased its offline and online marketing, launching television commercials and strengthening search engine optimization efforts, which continue to successfully build the Everest brand and attract customers to both our traditional gaming software and poker products.
During the fourth quarter we expect to launch additional product initiatives, including a new player notes feature and enhanced game tables and avatars. Our licensee also intends to continue to provide satellite events for major third-party tours, launch additional television advertisements, and begin the Everest Poker Nordic Summit, a tour targeting Scandinavian players.
Key metrics in the Company's poker software business continued to rapidly increase during the third quarter of 2006. Revenue was $8.4 million, up significantly from $1.1 million in the same period of 2005 and up 40 percent from the previous quarter. Poker software represented 57 percent of the business unit's total third-quarter 2006 revenues. Approximately 61,000 active depositing real-money customers played Everest Poker during the third quarter, up 40 percent from the previous quarter. During the quarter, we added approximately 31,000 new depositing real-money poker players.
Driving the revenue growth in the poker vertical were continued increases in the number of our players as a result of strong brand-building and marketing initiatives in our top markets by our licensee and its affiliates. Highlights included Everest Poker European Championship events across Europe, culminating in the Everest Poker European Championship in Barcelona in September, and numerous satellite events for major international poker tours, including the World Series of Poker.
Revenues in the traditional gaming software vertical were $6.4 million during the third quarter. This represented a 38 percent increase from the same period in 2005 and an increase of 11 percent from the second quarter of 2006. The year-over-year and quarter-over-quarter increases in revenues were related to the launch of new games, including Atlantis -- an advanced video slot machine -- and video poker. The business also continued to experience growth in cross-vertical players coming from Everest Poker during the period.
Online Entertainment Business -- MahJong and Online Asian Casual Games
(unaudited, 3Q06 3Q05 Change 3Q06 2Q06 Change
in US$ thousands) (%) (%)
Revenues 4,304 NA NA 4,304 4,060 6
Operating Income 1,207 NA NA 1,207 1,270 -5
Net Income 1,224 NA NA 1,224 1,237 -1
EBITDA 1,643 NA NA 1,643 1,684 -2
Performance of the online casual games business was solid in the third quarter as management increased brand-building initiatives. These actions began to drive revenue growth and resulted in a slightly lower operating margin in the period.
Revenues from FunTown in the third quarter of 2006 increased 6 percent from the second quarter of 2006. Operating income declined by 5 percent over the prior period, primarily related to increased selling and marketing expenses, royalty costs and bad debt expenses. Net income declined 1 percent quarter-over-quarter to $1.2 million. EBITDA declined 2 percent from the second quarter of 2006 to $1.6 million. Capital expenditure totaled approximately $411 thousand for the third quarter, and amortization expenses related to intangible assets recorded as a result of the acquisition of FunTown amounted to $317 thousand for the period. Operating margin decreased to 28 percent, reflecting the increase in selling and marketing expenses, royalty costs and bad debt expenses during the period.
FunTown recorded approximately 34,000 maximum concurrent users during the third quarter, flat compared with the previous quarter.
An increased marketing campaign, the launch of Tales Runner -- a licensed racing game, a new category of self-developed puzzle-based games, and a seasonal upturn were the key factors driving revenue growth during the third quarter. The Company held its annual national MahJong tournament in the third quarter, a popular, high-profile event in which hundreds of FunTown member guilds and thousands of gamers compete for prizes. During the period, FunTown also continued to invest in software upgrades, including improved avatars and new virtual sales items. Management expects to launch additional new games in the fourth quarter with continued focus on expanding the platform and improving the overall player experience.
Other Businesses -- Broadband ISP Business
(unaudited, 3Q06 3Q05 Change 3Q06 2Q06 Change
in US$ thousands) (%) (%)
Revenues 5,217 5,407 -4 5,217 5,337 -2
Operating Income 1,358 180 656 1,358 1,066 27
Net Income 1,224 138 785 1,224 8,073 -85
EBITDA 1,897 1,168 63 1,897 9,466 -80
The Company's legacy broadband ISP business achieved improved efficiencies in the third quarter of 2006 on the back of strong cost controls by management.
Revenues decreased 4 percent to $5.2 million from the third quarter of 2005 and 2 percent from the second quarter of 2006 primarily due to the sale of the Company's ADSL business in May 2006. Subscription revenue declines resulting from the sale were partially offset by fee income for bandwidth, consulting, and other support services related to the sale. Operating income increased 656 percent to $1.4 million from the third quarter of 2005 and increased 27 percent from the second quarter of 2006. The year-over-year increase in operating income was due to management's ongoing focus on cost control. The sequential quarterly increase was related to lower costs and expenses resulting from the sale of the ADSL business and reduced product development expenses in the third quarter. Capital expenditure totaled approximately $201 thousand for the third quarter of 2006.
Net income increased 785 percent to $1.2 million over the third quarter of 2005 and decreased 85 percent quarter-over-quarter. The year-over-year increase in net income reflected improved efficiencies in the business in 2006. The quarter-over-quarter variation was primarily due to the impact on second-quarter results of a one-time pre-tax gain recorded on the sale of the ADSL business of approximately $7.7 million (or $7.0 million, net of tax).
Third-quarter revenues in the consumer broadband ISP business were $3.5 million, a 4 percent decrease quarter-over-quarter, due to the aforementioned sale of the ADSL business in May 2006 and a decrease in the total number of cable subscribers. Revenues in the corporate broadband ISP business in the third quarter were $1.8 million, up 1 percent quarter-over-quarter, due to a slight increase in total lines leased.
Consistent with the Company's focus on online entertainment and driving shareholder value, the Company has retained financial advisors to explore the sale of its legacy ISP business.
Business Outlook
The following forward-looking statements reflect GigaMedia's expectations as of November 9, 2006. Given potential changes in economic conditions and consumer spending, the evolving nature of broadband, online entertainment software and online casual games, and various other risk factors, including those discussed in the Company's 2005 Annual Report or 20-F filing with the U.S. Securities and Exchange Commission referenced below, actual results may differ materially.
In the fourth quarter of 2006, management expects continued strong business momentum and revenue growth in our poker software product driven by online and offline marketing of the Everest Poker brand and a traditional upturn in online gaming during the winter season. Management also anticipates a solid contribution in the fourth quarter from the traditional gaming vertical resulting from new games and marketing initiatives surrounding the Everest properties. Consequently, management also expects an increased level of selling and marketing expenses in the fourth quarter.
Management expects ongoing investments in its online MahJong and Asian casual games business to accelerate revenue growth in the fourth quarter. New game launches and our partnership with the China casual games portal T2CN are expected to result in growing contributions to FunTown going forward.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements presented in accordance with GAAP, we use the following measures defined as non-GAAP by the SEC: EBITDA, and US GAAP operating income and net income data adjusted to exclude the impact of share-based compensation. The presentation of these non-GAAP financial measures is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with GAAP.
We believe these non-GAAP financial measures provide meaningful supplemental information regarding our performance by excluding certain expenses that may not be indicative of our operating performance. Effective January 1, 2006, GigaMedia adopted Statement of Financial Accounting Standards No. 123(R) (''SFAS 123(R)'') regarding the expensing of share-based compensation. We believe that the presentation of non-GAAP operating income and net income enables more meaningful comparisons of performances across periods to be made by excluding the effect of SFAS 123(R), and that EBITDA is a measure of performance used by some investors, equity analysts and others to make informed investment decisions. We believe that both management and investors benefit from referring to these non-GAAP financial measures in assessing our performance and when planning and forecasting future periods. We believe these non-GAAP financial measures are useful to investors in allowing for greater transparency with respect to supplemental information used by management in its financial and operational decision making. A limitation of using non-GAAP operating income excluding share-based compensation expenses and net income excluding share-based compensation expenses is that these non- GAAP measures exclude share-based compensation expenses that have been and will continue to be for the foreseeable future a recurring expense in our business. A limitation of using EBITDA is that it does not include all items that impact our net income for the period. In addition, EBITDA as defined by GigaMedia may not be comparable to similarly titled measures reported by other companies. Management compensates for these limitations by providing specific information regarding the GAAP amounts excluded from each non-GAAP measure. Reconciliations of the adjusted income statement data to GigaMedia's US GAAP income statement data are provided on the attached unaudited financial statements.
In this third-quarter 2006 results press release, EBITDA is defined as earnings before interest, taxes, depreciation, and amortization. In the Company's earnings releases prior to the second quarter of 2006, EBITDA also excluded income from discontinued operations and minority interests. Therefore, EBITDA figures presented in this release may be different from those presented in previous earnings releases.
About the Numbers in This Release
Quarterly figures
All quarterly figures 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, and are presented in U.S. dollars.
Consolidated financial results for the third quarter of 2006 benefited from GigaMedia's acquisition in January 2006 of leading Asian casual games portal FunTown. As a result, consolidated financial results for the third quarter of 2006 may not be comparable with other periods.
Beginning in the third quarter of 2006, we have reclassified certain revenues and cost items, and certain balance sheet accounts. We have recast the quarterly financial results presented herein to reflect this reclassification. The reclassification has had no impact on our consolidated revenues, consolidated total costs and expenses, consolidated operating income, consolidated net income, total assets or total liabilities.
Segmental results
GigaMedia's segmental financial results are based on the Company's method of internal reporting and are not necessarily in conformity with accounting principles generally accepted in the U.S. Consolidated quarterly and/or annual financial results of the Company may differ from totals of the Company's segmental financial results for the same period due to (1) the impact of the Company's headquarters costs and expenses, which are not reflected in the business segment results, (2) the impact of certain non-operating subsidiaries of GigaMedia on the Company's consolidated financial results, and (3) certain inter-company eliminations.
Results from continuing operations
On September 29, 2005, the Company sold its land-based music distribution business to Nextbase International Limited. In accordance with reporting guidelines (SFAS No. 144: Accounting for the Impairment or Disposal of Long- Lived Assets) and to allow for meaningful comparisons, we have recast the quarterly financial results presented herein to reflect this sale and highlight continuing operations, unless otherwise noted.
Share-based payment
Effective January 1, 2006, GigaMedia adopted the fair value recognition provisions of SFAS 123(R), using the modified-prospective transition method.
FIN 46(R)
During the fourth quarter of 2004, the Company adopted Financial Accounting Standards Board (''FASB'') Interpretation No. 46, Consolidation of Variable Interest Entities - an Interpretation of Accounting Research Bulletin No. 51 (''FIN 46''), as revised by the subsequent amendment, FIN 46(R). The provisions of FIN 46(R) require consolidation by the primary beneficiary of variable interest entities, as that term is defined in FIN 46(R). The Company conducted a review of existing contracts for our variable interest parties and determined that it was a primary beneficiary of UIM, a licensee of GigaMedia's entertainment software developer CESL. All results referred to in this press release, unless otherwise indicated, reflect the Company's adoption of FIN 46(R).
Conference Call and Webcast
GigaMedia will hold a conference call at 9:00 p.m. Taipei/Hong Kong Time on November 9, 2006, which is 8:00 a.m. Eastern Daylight Time on November 9, 2006 in the United States, to discuss the Company's third-quarter performance. Individual investors can listen to a webcast of the call at http://www.gigamedia.com.tw , through CCBN's individual investor center at http://www.fulldisclosure.com , or by visiting any of the investor sites in CCBN's Individual Investor Network. Institutional investors can access the call via CCBN's password-protected event management site, StreetEvents ( http://www.streetevents.com ). The webcast will be available for replay.
About GigaMedia
GigaMedia Limited (Singapore registration number: 199905474H) is a major provider of online entertainment software and services. GigaMedia develops software for online entertainment services, including the global online gaming market. GigaMedia's FunTown game portal is a leading Asian casual games portal and the world's largest online MahJong game site in terms of revenue. GigaMedia also operates a broadband ISP providing Internet access services to consumers and corporate subscribers in Taiwan. More information on GigaMedia can be obtained from http://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. GigaMedia cautions readers that forward-looking statements are based on the Company's current expectations and involve a number of risks and uncertainties. Actual results may differ materially from those contained in such forward-looking statements. Information as to certain factors that could cause actual results to vary can be found in GigaMedia's Annual Report on Form 20-F filed with the United States Securities and Exchange Commission in June 2006.
- Tables to follow -
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
9/30/2006 6/30/2006 9/30/2005
unaudited unaudited unaudited
USD USD USD
Operating revenues
Software licensing & online
entertainment revenues 14,726,154 11,674,354 5,727,001
Online game revenues 4,304,000 4,060,375 0
Internet access and service revenues 5,162,368 5,265,747 5,374,212
Other revenues 6,863 21,474 13,264
Total operating revenues 24,199,385 21,021,950 11,114,477
Costs and expenses
Cost of software licensing & online
entertainment revenues 2,133,493 1,615,087 1,246,594
Cost of online game revenues 709,489 487,461 0
Cost of Internet and service revenues
(includes share-based compensation
expenses under SFAS 123(R) of $4,949,
$5,046, and $0, respectively) 2,862,173 3,052,342 3,424,593
Cost of other revenues 57,661 85,895 92,081
Product development & engineering
expenses (includes share-based
compensation expenses under
SFAS 123(R) of $11,362, $11,582, and
$0, respectively) 1,453,367 1,466,294 919,611
Selling and marketing expenses
(includes share-based compensation
expenses under SFAS 123(R) of
$16,805, $17,131, and $0,
respectively) 7,477,582 6,344,172 2,317,541
General and administrative expenses
(includes share-based compensation
expenses under SFAS 123(R) of
$13,507, $13,770, and $0,
respectively) 3,247,478 3,258,432 1,896,374
Bad debt expenses 214,523 106,385 99,749
Total costs and expenses 18,155,766 16,416,068 9,996,543
Income from operations 6,043,619 4,605,882 1,117,934
Non-operating income (expense)
Interest income 138,624 181,450 96,789
Foreign exchange gain (loss) - net (8,570) (106,421) 277,867
Gain on sales of marketable securities 26,555 23,653 357,535
Loss on disposal of property, plant &
eqpmt. (9,074) (12,202) (9,509)
Interest expense (112,635) (200,016) 0
Other non-operating income 618,870 7,783,088 (7,795)
Non-operating income 653,770 7,669,552 714,887
Income tax expense 169,289 859,904 95,084
Minority interest income 16,410 183,848 181,807
Income from continuing operations 6,511,690 11,231,682 1,555,930
Income from discontinued operations
(including gain on disposal) 0 0 167,972
Net income 6,511,690 11,231,682 1,723,902
Earnings per share
Basic:
Income from continuing operations 0.13 0.22 0.03
Income from discontinued operations 0.00 0.00 0.00
0.13 0.22 0.03
Diluted:
Income from continuing operations 0.11 0.18 0.03
Income from discontinued operations 0.00 0.00 0.00
0.11 0.18 0.03
Weighted average shares outstanding
Basic 51,027,013 50,738,082 50,343,642
Diluted 60,430,120 63,667,069 55,354,338
* All amounts have been presented to reflect the reclassification of
certain accounts in the third quarter of 2006.
GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
9/30/2006 6/30/2006 9/30/2005
unaudited unaudited unaudited
USD USD USD
Assets
Current assets
Cash and cash equivalents 16,713,010 10,964,616 30,692,753
Marketable securities - current 18,398,098 19,784,287 25,033,283
Notes and accounts receivable - net 17,726,817 15,356,868 6,544,315
Inventories - net 95,903 93,752 112,890
Prepaid expenses 1,480,578 752,077 565,116
Restricted cash 2,657,492 2,518,227 0
Other current assets 7,715,166 8,867,593 769,808
Total current assets 64,787,064 58,337,420 63,718,165
Marketable securities - noncurrent 15,000,000 15,000,000 2,431,804
Property, plant & equipment - net 9,968,996 10,422,274 10,888,870
Goodwill 50,645,511 51,057,467 29,607,283
Intangible assets - net 22,679,009 23,006,088 2,762,145
Other assets 2,535,856 4,883,802 587,503
Total assets 165,616,436 162,707,051 109,995,770
Liabilities & shareholders' equity
Short-term loans 12,658,610 1,884,461 0
Notes and accounts payable 1,828,776 1,914,175 1,441,631
Accrued compensation 2,804,077 1,649,962 974,061
Accrued expenses 4,621,466 4,138,683 3,128,942
Other current liabilities 17,879,047 17,785,370 4,446,810
Total current liabilities 39,791,976 27,372,651 9,991,444
Convertible notes 0 15,893,352 0
Other liabilities 2,299,490 2,481,042 2,013,197
Total liabilities 42,091,466 45,747,045 12,004,641
Minority interests 777,458 761,048 243,152
Shareholders' equity 122,747,512 116,198,958 97,747,977
Total liabilities & shareholders'
equity 165,616,436 162,707,051 109,995,770
* All amounts have been presented to reflect the reclassification of
certain accounts in the third quarter of 2006. This reclassification
does not affect the total assets and total liabilites presented in prior
quarters.
GIGAMEDIA LIMITED
Reconciliations of Non-GAAP Results of Operations
Three months ended
9/30/2006 6/30/2006 9/30/2005
unaudited unaudited unaudited
USD USD USD
Income from operations
GAAP result 6,043,619 4,605,882 1,117,934
Adjustment: share-based
compensation 46,623 47,529 0
Non-GAAP result 6,090,242 4,653,411 1,117,934
Net income
GAAP result 6,511,690 11,231,682 1,723,902
Adjustment: share-based
compensation 46,623 47,529 0
Non-GAAP result 6,558,313 11,279,211 1,723,902
Reconciliation of Net Income to EBITDA
Net Income 6,511,690 11,231,682 1,723,902
Depreciation 713,411 761,075 959,441
Amortization 719,766 709,768 341,170
Interest (income) expense (25,988) 18,565 (96,789)
Tax 169,289 859,905 95,084
EBITDA 8,088,168 13,580,995 3,022,808
For further information contact:
Brad Miller, Investor Relations Director
Tel: +886-2-3518-1107
Email: brad.miller@gigamedia.com.tw
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It should come as a surprise to no one that charity-poker games have emerged in recent years as an i...
Spurred by the three-month success of high stakes poker, the Naples-Fort Myers Greyhound Track’s pok...
Online Casino Group Betfair has announced that it has boosted its IT energy efficiency to support it...
Rumors have been circulating for a while now about the future of 32Red.com and its Gibraltar-based B...
CryptoLogic has announced that they have received exclusive rights to make slots and other casino ga...
Since the beginning of the U.S. Presidents first term, the Bush administration has been trying to ke...
The coastal casino in the State of Mississippi have had a diffilcutl few years, yet it seems that th...
Her Majesty Queen Elizabeth II recently found that not only was she one of the most richest women in...
It seems that there is no limit to how low some online casinos can go in order to secure a profit. V...
After a 10-month investigation into the slimy world of Internet "casinos or sports books", Americas ...
It looks like the team behind Online-Casinos.com want to make their online casino portal a fun place...
Positive Experience Begins Even Before Guests Step Out of Their Cars at Harrah's, St. Louis Casino &...
Penghu, a set of islets off Taiwan, is trying to be the next Macao by building a casino town to lure...
The battles against the draconian UIGEA seems to be gaining momentum in the world courts. Here are t...
The Online Casino industry has experienced the worst setback that it ever has since UIGEA. However, ...
The recent British Online Gambling Act has sent the online casino industry into a flurry of exciteme...
As agreed by all interested parties, the hearing that was to take place on the issue of repealing th...
eCOGRA, the world's Internet Pilce Officer, has announced that it approves of the measures taken in ...
Playtech has announced that its Cheif Financial Officer, Shuki Barak, is leaving the group. ...
The Gambling Act is the first peice of legislation that has been passed in the UK about gambling. Wh...
Have you committed a crime in order to pay gambling debts? When you gamble, do you go back another d...
America’s Attorney General Alberto Gonzales has at long last bowed to pressure and has resigned from...
As of today, online gambling in the United Kingdom, as well as advertising from online casino operat...
PartyGaming PartyGaming published their first-half interim results this week, reporting an expected ...
In papers filed today, the US District Court of New Jersey, Trenton Division, has granted a motion o...
Malta is the next online casino superpower, it seems. Here is the storty how a little country draws ...
For some addicts, a casino can be the root of all evils. For others, a fix can come from visiting th...
The new piece of legislation banning advertisements in the UK has caused some stir in the online gam...
Pachinko has become one of the most popular games in the world. Here are a few tips that will help y...
| Name | Payout | |
|---|---|---|
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Club Vegas USA | 99%
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Cool Cat Casino | 98%
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||
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Club USA Casino | 97.5%
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Rushmore Casino | 97.2%
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LuckyAce Poker | 99.4%
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LuckyAce Casino | 98.3%
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 |
Las Vegas USA | 97.33%
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||
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