Business
GigaMedia Announces Fourth-Quarter and Full Year 2022 Financial Results
TAIPEI, March 31, 2023 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its unaudited financial results for the fourth quarter and full year
About this update from Gigamedia Limited
[{"type":"text","content":"TAIPEI, March 31, 2023 /PRNewswire/ -- GigaMedia Limited (NASDAQ: GIGM) today announced its unaudited financial results for the fourth quarter and full year of 2022.\nHighlights for Year Ended December 31, 2022\nFor 2022, GigaMedia reported revenues of $5.6 million, with a gross profit of $3.3 million, an operating loss of $3.0 million and the net loss of $3.1 million.\n\"In spite of all the difficulties, GigaMeida delivered an improving result for 2022,\" said GigaMedia CEO James Huang. 2022 was indeed very challenging for entertainment business, with all the rising cost of living and the eroded consumer confidence. \"But we managed to enhance our productivity with a leaner organization structure,\" continued CEO James Huang.\nNotwithstanding a slower season in the fourth quarter, we closed 2022 with a smaller net loss of $3.1 million from $3.4 million in the prior year. While we generated slightly higher revenues than last year, the gross margin rate increased considerably from 52.9% to 58.2%. Furthermore, even under the current inflationary environment, the operating expenditures were trimmed down from $6.9 million to $6.3 million.\nMeanwhile, we continued searching opportunities of mergers and acquisitions. Certain projects have been reviewed and examined, but we would not rush into making any reckless decision. \"We believe patience, a virtue too often undervalued, is very important in making a strategic investment successful,\" stated GigaMedia CEO James Huang.\nFourth Quarter and Full Year Overview \nConsolidated 4Q revenues decreased by 30.0% quarter-on-quarter mainly due to seasonality, and by 12.3% year-over-year. Nevertheless, full year revenues increased slightly by 1.7% to $5.6 million from $5.5 million in 2021. Loss from operations for 4Q was $0.7 million, almost the same if compared to the third quarter in 2022, as we managed to reduce the operating costs and expenses. Full year operating loss was $3.0 million, representing a reduction of loss by $1.0 million from approximately $4.0 million in 2021.The net asset value was approximately $4.40 per share as of the end of 2022.Unaudited Consolidated Financial Results\nGigaMedia 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...