GigaMedia (GIGM) - 2021 Q1 - Quarterly Report

Financial Performance - GigaMedia reported full year revenues of $6.9 million for 2020, a 3.5% increase from $6.6 million in 2019[4] - Gross profit for 2020 was $3.9 million, reflecting a 9.4% increase from $3.6 million in 2019, with a gross margin rate rising to 57.0%[3] - The operating loss for 2020 was reduced to $2.2 million, down 28.6% from a loss of $3.0 million in 2019[6] - The net loss for 2020 narrowed to $1.3 million, a 22.0% improvement from a net loss of $1.7 million in the prior year[9] - EBITDA for the twelve months ended 12/31/2020 was $(1,898,712), an improvement from $(3,034,878) for the previous year[27] - Net loss attributable to shareholders for the twelve months ended 12/31/2020 was $1,293,405, compared to a net loss of $1,658,990 for the previous year, showing an improvement of 22.1%[24] Quarterly Performance - In Q4 2020, consolidated revenues decreased by 30.1% quarter-on-quarter to $1.4 million, and by 5.7% year-over-year[12] - The Q4 2020 loss from operations was $0.6 million, an increase from a loss of $0.4 million in Q3 2020[12] - Digital entertainment service revenues for the three months ended 09/30/2020 were $2,028,138, a decrease of 30.1% compared to $2,028,138 for the previous quarter[24] - Operating expenses for the three months ended 09/30/2020 totaled $1,553,749, an increase of 0.1% compared to $1,553,749 for the same period last year[24] Cash and Assets - Cash, cash equivalents, and restricted cash at the end of 2020 amounted to $46.0 million, a decrease of 21.1% from $58.3 million in 2019[8] - Cash and cash equivalents as of 12/31/2020 were $45,702,352, a decrease of 20.8% from $57,742,696 as of 12/31/2019[25] - Total assets decreased to $57,023,174 as of 12/31/2020, down from $59,222,216 as of 12/31/2019, reflecting a decline of 3.7%[25] - Total liabilities decreased to $2,926,311 as of 12/31/2020, down from $3,677,594 as of 12/31/2019, indicating a reduction of 20.4%[25] Strategic Initiatives - GigaMedia executed a purchase agreement to acquire a $10 million convertible promissory note from Aeolus Robotics, indicating a strategic investment in AI-enabled service robots[3] - The company aims to enhance productivity and customer relationships while exploring mergers and acquisitions for growth acceleration[15] Shareholder Information - The net asset value was approximately $4.89 per share as of the end of 2020[6] - Weighted average shares outstanding remained constant at 11,052,235 for the periods reported[24] Interest Income - Interest income for the twelve months ended 12/31/2020 was $613,016, down from $1,483,375 for the previous year, a decrease of 58.7%[27]