GigaMedia Announces Fourth-Quarter and Full Year 2023 Financial Results

Core Viewpoint - GigaMedia Limited reported a significant decline in revenues and increased net losses for the year 2023, while also implementing cost-cutting measures and focusing on AI development for future growth [2][6][10]. Financial Performance - For the full year 2023, GigaMedia's revenues were $4.3 million, down 23.2% from $5.6 million in 2022 [5][6]. - Gross profit for 2023 was $2.4 million, a decrease of 24.7% compared to $3.25 million in 2022 [5]. - The operating loss for 2023 was $3.2 million, slightly higher than the $3.0 million loss in 2022 [6][8]. - The net loss for 2023 was $3.5 million, compared to a net loss of $2.8 million in 2022, with a loss per share of $0.31 [5][6][8]. Fourth Quarter Overview - In Q4 2023, revenues decreased by 18.8% quarter-on-quarter and 21.1% year-over-year, primarily due to seasonal factors and declines in licensed games [5][8]. - The loss from operations in Q4 was $0.6 million, an improvement from a loss of $0.9 million in Q3 2023 [5][8]. - The net loss for Q4 was $2.6 million, which included a $2.2 million valuation loss on investments [8][9]. Balance Sheet and Cash Position - At the end of 2023, GigaMedia had cash, cash equivalents, and restricted cash totaling $38.8 million, a slight decrease from $39.1 million at the end of 2022 [3][9]. - The company maintained a solid financial position with zero bank loans and shareholders' equity of approximately $42.8 million [9][10]. Business Strategy and Outlook - GigaMedia plans to develop AI-powered tools to enhance efficiency in content renovation for casual games and explore commercialization opportunities for these tools [3][10]. - The company is also focused on expanding through mergers and acquisitions to accelerate growth and enhance shareholder value [11].