GigaMedia releases Q1 2016 financial results

GigaMedia Limited (NASDAQ: GIGM) has announced its first-quarter 2016 unaudited financial results.

FunTown operations gross margin improved to 57 percent from 52 percent in the fourth quarter of 2015 on higher revenue and lower outsourced fees.

The Company´s consolidated EBITDA for the first quarter of 2016 amounted to USD1 million, a growth of 112 percent from minus USD8.8 million a quarter before. The consolidated gross profit increased USD0.3 million to USD1.3 million.

The online game business expects to soon announce the licensing of a popular mobile-based RPG game. Following localization, planning and testing, management is looking ahead to its launching in the second quarter this year, and to bring in revenue in the third quarter.

General and administrative expenses continued trending down, decreasing 27 percent year-on-year.

Low headquarters operating expenses of USD0.75 million, down from USD0.9 million in the fourth quarter of 2015.
Cash outflow from operations of approximately USD1 million.
Short-term debt remained at approximately USD6.2 million.

The online game business has achieved break even in the first quarter of 2016, and the management expects to have sustainable revenue growth.

Headquartered in Taipei, Taiwan, GigaMedia Limited (Singapore registration number: 199905474H) is a diversified provider of online games and cloud computing services. GigaMedia´s online games business develops and operates a suite of games in Taiwan and Hong Kong, with focus on browser/mobile games and social casino games. The Company´s cloud computing business is focused on providing SMEs in Greater China with critical communications services and IT solutions that increase flexibility, efficiency and competitiveness.