�Australian and American scientists have identified the origins of the most malignant type of brain neoplasm in a discovery that could pencil lead to better therapies and improve our understanding of how tumours initiate.
The team, lED by Professor Brandon Wainwright from the Institute for Molecular Bioscience at the University of Queensland in Brisbane, Australia, and Dr Robert Wechsler-Reya from Duke University in Durham, USA, studied medulloblastomas, which occur most a great deal in children.
"Almost half the people who develop these tumours die from them, and those world Health Organization survive often suffer life-threatening side personal effects from the treatment," Professor Wainwright said. "Improved treatments are urgently required, only in order to develop these, we need a deeper discernment of the molecular and cellular origins of medulloblastomas."
The squad found that medulloblastomas can originate from two types of cubicle: multipotent neuronal stem cells (NSCs) and granule nerve cell precursors (GNPs). NSCs are stem cells that canful become most types of cell within the nervous system, spell GNPs are similar to stem cells but alone give rise to one type of cells, known as granule neurons.
"There was good evidence that either cell type could be the origin of medulloblastomas, simply no one considered that both sets of evidence could be correct, and that these tumours could actually begin in two different cell types," Professor Wainwright aforementioned.
"Identifying the normal electric cell that gives rise to a neoplasm is important because it allows direct comparisons betwixt tumour cells and their normal counterparts so that key differences and vulnerabilities in the tumour stool be identified.
"Also, recent studies indicate that cells resembling the original cell may remain in suppurate tumours and can be critical in ensuring its survival. If so, these cells would be an excellent target for discussion."
The team made their discovery by examining a gene called Patched, which is involved in the regulation of both neuronic stem cells and GNPs. When the gene is inactivated, medulloblastomas develop.
However, when inactivation occurs, it happens in all cells, so in that location was no way of knowing in which cell the tumor had begun. The team took advantage of an allele, or version, of Patched that allows deactivation of the gene in either GNPs or neural stem cells, and establish that the tumours developed no issue in which cell Patched was inactivated.
The study could besides have wider implications for treating other types of cancer, as the team also plant that malignant neoplastic disease doesn't always originate in the same way.
"It has always been intellection that cells had to mutate respective times in front becoming a tumour," Professor Wainwright aforementioned. "In this study we found that some shank cells only needed to mutate once.
"They would not turn cancerous immediately, but in one case they had been granted an direction to turn into a more specialised cell, the mutation would take go for and they would instead turn into a tumor."
The study has been published in current yield of stellar scientific journal Cancer Cell
, and is funded by the National Health and Medical Research Council, the Australian Cancer Research Foundation, the Cancer Council QLD and the John Trivett Foundation.
The University of Queensland, Brisbane Australia
More info
Saturday, 16 August 2008
Thursday, 7 August 2008
Book offers criticism of U.S. president Abraham Lincoln
"Lincoln's Darkest Year - The War in 1862"
By William Marvel
Publisher: Houghton Mifflin Company
Either the fighting or the politics of 1862 - the
Friday, 27 June 2008
Jack Lancaster and Robin Lumley
Artist: Jack Lancaster and Robin Lumley
Genre(s):
New Age
Discography:
Marscape
Year: 1975
Tracks: 13
Scott Joplin
Monday, 23 June 2008
Monday, 16 June 2008
Thumbplay Launches Beta Version of SMS-based Mobile Entertainment Content Search
Consumers Can Text Message 'Get' To THUMB (84862) to Quickly and Easily
Search Through More Than 80,000 Pieces of Licensed Mobile Entertainment
Content
NEW YORK, June 16 -- Thumbplay(R) (http://www.thumbplay.com), the
#1 mobile entertainment destination in the U.S.*, has launched the beta
version of an innovative mobile search service that allows cell phone users
in the United States to instantly search for and purchase ringtones, games,
videos and wallpapers from their mobile phone or handheld device (like a
Blackberry).
Thumbplay's GET is an SMS-based search option that allows consumers to
search for mobile entertainment content from wherever they are. All a
consumer needs to do is send a text message with the word "Get" plus any
artist or song name to THUMB (84862) to find and download content from
their favorite artists. For example, to find all mobile content associated
with the band Coldplay, a user would simply send an SMS message to THUMB
(84862) with the phrase "Get Coldplay" and a link to relevant content
(e.g., songs, videos, wallpapers and/or associated games) will be sent back
from Thumbplay to their mobile phone within seconds. A user would then
follow this link (as long as their phone has Web access to retrieve the
links) to a large menu of licensed Coldplay content found in Thumbplay's
catalog, which they can browse without commitment and then purchase and
download.
"Thumbplay has maintained and grown its leadership position in the
industry by providing our consumers with the largest catalog and allowing
them to quickly and easily search for, find and download the mobile content
they want," said Are Traasdahl, CEO and founder of Thumbplay. "With GET,
we've made it simple for consumers to find and purchase their favorite
mobile content whenever and wherever they are -- even if they're not near a
computer."
GET streamlines the way consumers can search for, browse and download
mobile entertainment content from their cell phones, regardless of their
location. It enables them to find relevant content by keyword -- such as an
artist's name or a song or game title -- within Thumbplay's extensive
mobile catalog, which currently includes more than 80,000 pieces of
licensed audio, video and gaming content from many of the world's leading
music labels, artists and game publishers, as well as media and
entertainment companies.
Thumbplay has built a strong consumer following and gained broad
recognition as a leader in the direct-to-consumer mobile content space.
During the last quarter of 2007, Thumbplay announced deals to integrate its
mobile entertainment content catalog into the Web and mobile portals of AOL
and MSN Mobile, as well as iLike, one of the Web's leading social music
discovery services.
Earlier this year, Thumbplay signed a digital distribution agreement to
add content from Sony BMG Music Entertainment's artists to Thumbplay's
already diverse mobile entertainment catalog, as well as to roll out mobile
content stores on the Web sites for Entertainment Tonight
(http://www.etonline.com) and more than 650 of Clear Channel Radio's local music,
news and sports stations throughout the U.S.
About Thumbplay
Thumbplay, Inc. is defining the mobile entertainment experience for
U.S. consumers. As the largest and fastest growing mobile entertainment
content destination, Thumbplay gives consumers access to the broadest and
deepest catalog in the industry, spanning audio, video and gaming content
from the leading music labels and artists, game publishers and media
companies. Its innovative delivery and marketing platform makes it easy for
users to discover, manage, store and share mobile content online and on
their wireless devices.
Headquartered in New York City, Thumbplay was founded in September 2004
by Are Traasdahl and Evan Schwartz. It is backed by Bain Capital Ventures,
SoftBank Capital, i-Hatch Ventures, Redwood Partners, New Enterprise
Associates, Meritech, Brookside Capital Partners and Cross Creek Capital.
More information can be found at http://www.thumbplay.com.
*Source: Nielsen Mobile's "Mobile Content Storefront Revenue" Report,
Q3
and Q4 2007 and Q1 2008(based on non-carrier revenue generation
at the top 4 U.S. carriers)
See Also
Search Through More Than 80,000 Pieces of Licensed Mobile Entertainment
Content
NEW YORK, June 16 -- Thumbplay(R) (http://www.thumbplay.com), the
#1 mobile entertainment destination in the U.S.*, has launched the beta
version of an innovative mobile search service that allows cell phone users
in the United States to instantly search for and purchase ringtones, games,
videos and wallpapers from their mobile phone or handheld device (like a
Blackberry).
Thumbplay's GET is an SMS-based search option that allows consumers to
search for mobile entertainment content from wherever they are. All a
consumer needs to do is send a text message with the word "Get" plus any
artist or song name to THUMB (84862) to find and download content from
their favorite artists. For example, to find all mobile content associated
with the band Coldplay, a user would simply send an SMS message to THUMB
(84862) with the phrase "Get Coldplay" and a link to relevant content
(e.g., songs, videos, wallpapers and/or associated games) will be sent back
from Thumbplay to their mobile phone within seconds. A user would then
follow this link (as long as their phone has Web access to retrieve the
links) to a large menu of licensed Coldplay content found in Thumbplay's
catalog, which they can browse without commitment and then purchase and
download.
"Thumbplay has maintained and grown its leadership position in the
industry by providing our consumers with the largest catalog and allowing
them to quickly and easily search for, find and download the mobile content
they want," said Are Traasdahl, CEO and founder of Thumbplay. "With GET,
we've made it simple for consumers to find and purchase their favorite
mobile content whenever and wherever they are -- even if they're not near a
computer."
GET streamlines the way consumers can search for, browse and download
mobile entertainment content from their cell phones, regardless of their
location. It enables them to find relevant content by keyword -- such as an
artist's name or a song or game title -- within Thumbplay's extensive
mobile catalog, which currently includes more than 80,000 pieces of
licensed audio, video and gaming content from many of the world's leading
music labels, artists and game publishers, as well as media and
entertainment companies.
Thumbplay has built a strong consumer following and gained broad
recognition as a leader in the direct-to-consumer mobile content space.
During the last quarter of 2007, Thumbplay announced deals to integrate its
mobile entertainment content catalog into the Web and mobile portals of AOL
and MSN Mobile, as well as iLike, one of the Web's leading social music
discovery services.
Earlier this year, Thumbplay signed a digital distribution agreement to
add content from Sony BMG Music Entertainment's artists to Thumbplay's
already diverse mobile entertainment catalog, as well as to roll out mobile
content stores on the Web sites for Entertainment Tonight
(http://www.etonline.com) and more than 650 of Clear Channel Radio's local music,
news and sports stations throughout the U.S.
About Thumbplay
Thumbplay, Inc. is defining the mobile entertainment experience for
U.S. consumers. As the largest and fastest growing mobile entertainment
content destination, Thumbplay gives consumers access to the broadest and
deepest catalog in the industry, spanning audio, video and gaming content
from the leading music labels and artists, game publishers and media
companies. Its innovative delivery and marketing platform makes it easy for
users to discover, manage, store and share mobile content online and on
their wireless devices.
Headquartered in New York City, Thumbplay was founded in September 2004
by Are Traasdahl and Evan Schwartz. It is backed by Bain Capital Ventures,
SoftBank Capital, i-Hatch Ventures, Redwood Partners, New Enterprise
Associates, Meritech, Brookside Capital Partners and Cross Creek Capital.
More information can be found at http://www.thumbplay.com.
*Source: Nielsen Mobile's "Mobile Content Storefront Revenue" Report,
Q3
and Q4 2007 and Q1 2008(based on non-carrier revenue generation
at the top 4 U.S. carriers)
See Also
Friday, 6 June 2008
Jennifer Lopez - Lopez Takes Over Nannying Duties
JENNIFER LOPEZ is refusing to find a new nanny to look after her baby twins, because she wants to be a full-time mum.
The nanny Lopez and husband Marc Anthony hired to look after three-month-old twins Max and Emme left the job last month (Apr08), and, instead of replacing her, Lopez is caring for the pair around the clock.
A friend tells Us Weekly, "She's beyond hands-on."
And both Lopez and Anthony plan to put family first and their careers second for at least the next 12 months: "They both told their managers that the next year would be all about family."
Meanwhile, Anthony will take his wife and twins with him when he tours Spain next month (Jun08).
See Also
Saturday, 31 May 2008
DigitalRodeo.com Lines Up Entertainment for Rhinestone Cure
NASHVILLE, Tenn., May 29 -- DigitalRodeo.com has announced
today that they have coordinated all the entertainment for Rhinestone Cure,
a non-profit, charitable event on Saturday, May 31st at Hotel Indigo, on
West End, from 7pm until midnight.
DigitalRodeo.com is an exclusive country music community that offers a
place for you to connect with artists, friends and fans as well as have an
unlimited opportunity to discover the world of country music quick, easy
and free!
One of the hottest entertainers coming for the evening are Married by
Elvis. Over the past 6 years, MBE worked hard to gain notoriety as San
Diego's favorite country band. They recently completed a 2 1/2 month stint
as the official house band for KSON's Hometown Handshake Tour (San Diego's
1 Country Radio Station), and have been featured on NBC, FOX, KUSI and in
the San Diego Union-Tribune, 944 & Riviera Magazine, San Diego Magazine and
Living In Style magazine ... just to name a few!
"The entertainment lined up for the evening includes Jazz sung by Suzie
Evjen of New York, country music greats such as James Intveld, and local
celebrity DJs. This is an event you will not want to miss and you will want
to bid on the Auction item, the Victory Motorcycle signed by Merle Haggard
at DigitalRodeo.com," said Stephen Shutts of DigitalRodeo.com.
"I have been blessed with an amazing life," says Morelia. "This
organization is my way of giving back. Diabetes is a serious disease that
can be managed with proper lifestyle but we still need a cure." After this
event, a telethon to fight diabetes would be the opportunity to utilize
Morelia's friends and many luminaries she has known since her childhood.
If you are interested in being a part of the Rhinestone Cure and
celebrating Morelia's 40th birthday party for a $40.00 Donation, please
call 615-829-2451 or visit Manuel American Designs, Inc. at 1922 Broadway
where Morelia is VP of public relations or go to http://www.rhinestonecure.org
About Rhinestone Cure:
Rhinestone Cure is a non-profit, charitable organization that raises
the awareness of Diabetes and the celebration of life! This organization's
primary focus is to create a telethon on network television for Diabetes
Awareness as well as create on-going "glitzy & entertaining" fundraising
events & activities that stage social & educational efforts illuminating
the realism of living with Diabetes and helping those affected by this
disease make positive choices. Rhinestone Cure cultivates participation
domestically & internationally to work in conjunction with businesses,
medical community, fashion industry, entertainment media & communication
firms, as well as private individuals united in the common goal to improve
the quality of life by defeating and finding a cure for Diabetes. Call
615-829-2451 http://www.rhinestonecure.org
See Also
today that they have coordinated all the entertainment for Rhinestone Cure,
a non-profit, charitable event on Saturday, May 31st at Hotel Indigo, on
West End, from 7pm until midnight.
DigitalRodeo.com is an exclusive country music community that offers a
place for you to connect with artists, friends and fans as well as have an
unlimited opportunity to discover the world of country music quick, easy
and free!
One of the hottest entertainers coming for the evening are Married by
Elvis. Over the past 6 years, MBE worked hard to gain notoriety as San
Diego's favorite country band. They recently completed a 2 1/2 month stint
as the official house band for KSON's Hometown Handshake Tour (San Diego's
1 Country Radio Station), and have been featured on NBC, FOX, KUSI and in
the San Diego Union-Tribune, 944 & Riviera Magazine, San Diego Magazine and
Living In Style magazine ... just to name a few!
"The entertainment lined up for the evening includes Jazz sung by Suzie
Evjen of New York, country music greats such as James Intveld, and local
celebrity DJs. This is an event you will not want to miss and you will want
to bid on the Auction item, the Victory Motorcycle signed by Merle Haggard
at DigitalRodeo.com," said Stephen Shutts of DigitalRodeo.com.
"I have been blessed with an amazing life," says Morelia. "This
organization is my way of giving back. Diabetes is a serious disease that
can be managed with proper lifestyle but we still need a cure." After this
event, a telethon to fight diabetes would be the opportunity to utilize
Morelia's friends and many luminaries she has known since her childhood.
If you are interested in being a part of the Rhinestone Cure and
celebrating Morelia's 40th birthday party for a $40.00 Donation, please
call 615-829-2451 or visit Manuel American Designs, Inc. at 1922 Broadway
where Morelia is VP of public relations or go to http://www.rhinestonecure.org
About Rhinestone Cure:
Rhinestone Cure is a non-profit, charitable organization that raises
the awareness of Diabetes and the celebration of life! This organization's
primary focus is to create a telethon on network television for Diabetes
Awareness as well as create on-going "glitzy & entertaining" fundraising
events & activities that stage social & educational efforts illuminating
the realism of living with Diabetes and helping those affected by this
disease make positive choices. Rhinestone Cure cultivates participation
domestically & internationally to work in conjunction with businesses,
medical community, fashion industry, entertainment media & communication
firms, as well as private individuals united in the common goal to improve
the quality of life by defeating and finding a cure for Diabetes. Call
615-829-2451 http://www.rhinestonecure.org
See Also
Friday, 30 May 2008
Guns N' Roses to finally release new album?
Guns N' Roses are reported to have finally completed their long-awaited album, 'Chinese Democracy'.
Frontman Axel Rose has spent nearly 15 years working on the album, which will mark the band's first new material in over 16 years.
The band's last studio release was 1993's punk covers album 'The Spaghetti Incident'.
Lead singer Axl Rose has repeatedly delayed the release of 'Chinese Democracy' because of band member changes and personal reasons.
However, Rose's manager Beta Lebeis has told Metal Hammer magazine that the record was completed before Christmas and that "everybody knows that".
Rose is currently arranging details for the album's release date, which is rumoured to be late summer.
Frontman Axel Rose has spent nearly 15 years working on the album, which will mark the band's first new material in over 16 years.
The band's last studio release was 1993's punk covers album 'The Spaghetti Incident'.
Lead singer Axl Rose has repeatedly delayed the release of 'Chinese Democracy' because of band member changes and personal reasons.
However, Rose's manager Beta Lebeis has told Metal Hammer magazine that the record was completed before Christmas and that "everybody knows that".
Rose is currently arranging details for the album's release date, which is rumoured to be late summer.
Lily Allen's TV show fails to attract viewers
Lily Allen's new talk show failed to attract a significant number of viewers, when it aired as part of BBC3's re-launch on Tuesday night.
The pop singer has turned TV presenter with 'Lily Allen and Friends', yet the high profile TV show attracted just 255,000 viewers, around 2% of the audience share according to reports.
The first night guests were Hollywood actor Cuba Gooding Jr and comedian David Mitchell.
Despite the figures a spokeswoman for the digital channel said: "It's a solid start for the show. It's only the first one but it performed really well with the 16-34 age group."
Some audience members were reported to have walked out of the recording because they were so bored.
But Allen, 22, wrote in her MySpace blog: "The audience were great, standing in a hot studio for two hours watching me fluff my lines is not my idea of fun, but they seemed to enjoy it."
She continued: "Due to it being the first show we've done, we ran over a little and naturally a small number of the audience had to catch the last trains back to wherever they came from."
Allen recently suffered a miscarriage and said she was "trying to get back to normality after what has been a rocky start to the year".
The pop singer has turned TV presenter with 'Lily Allen and Friends', yet the high profile TV show attracted just 255,000 viewers, around 2% of the audience share according to reports.
The first night guests were Hollywood actor Cuba Gooding Jr and comedian David Mitchell.
Despite the figures a spokeswoman for the digital channel said: "It's a solid start for the show. It's only the first one but it performed really well with the 16-34 age group."
Some audience members were reported to have walked out of the recording because they were so bored.
But Allen, 22, wrote in her MySpace blog: "The audience were great, standing in a hot studio for two hours watching me fluff my lines is not my idea of fun, but they seemed to enjoy it."
She continued: "Due to it being the first show we've done, we ran over a little and naturally a small number of the audience had to catch the last trains back to wherever they came from."
Allen recently suffered a miscarriage and said she was "trying to get back to normality after what has been a rocky start to the year".
Rock Band's Photo Contest to Feature Fans in Music Video
RARITAN, N.J., May 16 -- What if a favorite photo of yours
could be in a rock music video? The rock band Kindred Souls is producing a
music video for "Leap of Faith," a song about overcoming obstacles and
achieving personal triumphs.
Fans can download the song for free at http://www.fotki.com, and upload
a photo that shows their "leap of faith." The winner will get a hundred
dollars donated to their favorite charity. The deadline for submitting
photos is May 20th.
What is a "Leap of Faith?" "The song is about saying to yourself, 'I
believe in you!' It means taking a great leap towards believing in yourself
and what you can accomplish," says Kindred Souls singer-songwriter Jeff
Rafferty.
Kindred Souls joined forces with international media social network
website http://www.fotki.com to ask people to share photographs of their
"Leap of Faith" -- whatever that means to them. Fotki.com is based in 215
countries. The band's goal is get as many people as possible around the
globe to collaborate on producing a user-generated video.
Photographers, proud parents and grandparents, students, athletes,
performers, non-profits, and anyone who has a "leap of faith" photo are
encouraged to participate.
To be in the music video, visit http://www.fotki.com or
http://www.kindred-souls.com. Download the song for free, and submit a
photo and briefly explain how the photo expresses a "Leap of Faith."
The contest ends May 20th. After that, fans will be asked to vote for
their favorites. The photos will be compiled into a music video for the
song "Leap of Faith" and launched on YouTube and on
http://www.kindred-souls.com.
"We will include as many photos as possible in the video and donate
$100 to the favorite charity of whoever submits the most popular photo,"
says Kindred Souls songwriter and keyboardist Lon Bachrach.
What inspired Leap of Faith? Band founders Rafferty and Bachrach agree
it was drawn from overcoming some of their own personal struggles, which
includes trying to achieve success for their music.
Playing in clubs ranging from Asbury Park's Stone Pony to New York's
Knitting Factory, Kindred Souls is an all-original rock-n-roll band whose
music has shades of blues, jazz, R&B, funk, and soul. The band features
bassist Stan Quincy Adams, guitarists Ted Heman and Jeff Samet, and drummer
Paul Lavenhar.
"Part of our message is to tell other artists and folks of vision, who
are the carriers of creativity's torch, don't stop! Continue to share, to
create, and to believe. Take your leap of faith!"
Contact:
Paul Lavenhar
908-889-8884
paul@plcommunications.com
This release was issued through eReleases(TM). For more information,
visit http://www.ereleases.com.
See Also
could be in a rock music video? The rock band Kindred Souls is producing a
music video for "Leap of Faith," a song about overcoming obstacles and
achieving personal triumphs.
Fans can download the song for free at http://www.fotki.com, and upload
a photo that shows their "leap of faith." The winner will get a hundred
dollars donated to their favorite charity. The deadline for submitting
photos is May 20th.
What is a "Leap of Faith?" "The song is about saying to yourself, 'I
believe in you!' It means taking a great leap towards believing in yourself
and what you can accomplish," says Kindred Souls singer-songwriter Jeff
Rafferty.
Kindred Souls joined forces with international media social network
website http://www.fotki.com to ask people to share photographs of their
"Leap of Faith" -- whatever that means to them. Fotki.com is based in 215
countries. The band's goal is get as many people as possible around the
globe to collaborate on producing a user-generated video.
Photographers, proud parents and grandparents, students, athletes,
performers, non-profits, and anyone who has a "leap of faith" photo are
encouraged to participate.
To be in the music video, visit http://www.fotki.com or
http://www.kindred-souls.com. Download the song for free, and submit a
photo and briefly explain how the photo expresses a "Leap of Faith."
The contest ends May 20th. After that, fans will be asked to vote for
their favorites. The photos will be compiled into a music video for the
song "Leap of Faith" and launched on YouTube and on
http://www.kindred-souls.com.
"We will include as many photos as possible in the video and donate
$100 to the favorite charity of whoever submits the most popular photo,"
says Kindred Souls songwriter and keyboardist Lon Bachrach.
What inspired Leap of Faith? Band founders Rafferty and Bachrach agree
it was drawn from overcoming some of their own personal struggles, which
includes trying to achieve success for their music.
Playing in clubs ranging from Asbury Park's Stone Pony to New York's
Knitting Factory, Kindred Souls is an all-original rock-n-roll band whose
music has shades of blues, jazz, R&B, funk, and soul. The band features
bassist Stan Quincy Adams, guitarists Ted Heman and Jeff Samet, and drummer
Paul Lavenhar.
"Part of our message is to tell other artists and folks of vision, who
are the carriers of creativity's torch, don't stop! Continue to share, to
create, and to believe. Take your leap of faith!"
Contact:
Paul Lavenhar
908-889-8884
paul@plcommunications.com
This release was issued through eReleases(TM). For more information,
visit http://www.ereleases.com.
See Also
Cbs - New York Station Claims Most Viewers In Us
WABC-TV, ABC's flagship outlet in New York, boasted Thursday that it now
attracts more viewers than any other television station in the country. Despite
the fact that Fox won the May sweeps nationally and CBS came in second, the
ABC-owned station said that its overall ratings were 50 percent greater than
its nearest competitor. And while NBC Nightly News With Brian Williams
continues to edge out ABC World News With Charles Gibson in the
national ratings, the Gibson newscast in New York garners more viewers than
Williams's and the CBS Evening New With Katie Couric combined.
23/05/2008
See Also
GigaMedia: Profit up 43% to Record $12.1 Million in Q1
Highlights of First-Quarter 2008 Unaudited Results
-- Consolidated revenues increased 51 percent to a record US$54.6 million
from US$36.1 million in the same quarter in 2007 and grew by 15 percent
from the previous quarter.
-- Consolidated operating income climbed 49 percent to a record US$12.9
million from US$8.7 million in the same quarter in 2007 and jumped by 39
percent from the previous quarter.
-- Consolidated net income increased 43 percent to a record US$12.1 million
from US$8.5 million in the same quarter in 2007 and grew by 13 percent from
the previous quarter. GAAP basic and fully-diluted earnings per share were
US$0.22 and US$0.20, respectively.
-- Non-GAAP net income was US$12.8 million. Non-GAAP basic and fully-
diluted earnings per share were US$0.24 and US$0.21, respectively, which
exclude non-cash share-based compensation expenses.
HONG KONG, May 13 /Xinhua-PRNewswire-FirstCall/ -- GigaMedia Limited
(Nasdaq: GIGM) announced today strong first-quarter results with revenues
climbing 51 percent to a record $54.6 million, and operating income rising
49 percent to a record $12.9 million, both in comparison to first quarter
2007, driven by continued strong growth in its poker software business in
continental Europe and sharply increased contributions from its online
games business in Asia.
Net income was a record US$12.1 million, up 43 percent year-over-year
and up 13 percent sequentially over the last quarter of 2007. First-quarter
2008 non-GAAP basic and diluted earnings per share were $0.24 and $0.21,
respectively, which exclude non-cash share-based compensation expenses.
''GigaMedia delivered an excellent first quarter based on solid
execution in all businesses: strong growth in our world-leading poker
software business, record results in our casino software business, and an
exciting lift in our Asian online games business,'' stated President Thomas
Hui. ''We are driving outstanding growth from our existing products,
pointing to even more powerful growth to come from the new offerings we are
rolling out this year.''
''We start 2008 with an excellent quarter, a strong foundation from
which to introduce a new line-up of top games and offerings," stated CEO
Arthur Wang. ''Our plans to launch in Japan this quarter, to add casino
products to our poker client and to acquire or partner with a sports
betting firm all should drive even greater momentum and make 2008 another
record year.''
Consolidated Financial Results
GIGAMEDIA 1Q08 CONSOLIDATED FINANCIAL RESULTS
(unaudited, 1Q08 1Q07 Change 1Q08 4Q07 Change
all figures (%) (%)
in US$
thousands,
except per
share
amounts)
Revenues 54,629 36,086 51 54,629 47,708 15
Gross Profit 43,149 28,753 50 43,149 37,592 15
Operating
Income 12,907 8,665 49 12,907 9,299 39
GAAP Net
Income 12,077 8,459 43 12,077 10,659 13
GAAP Net
Income Per
Share,
Diluted 0.20 0.14 41 0.20 0.18 14
Non-GAAP Net
Income (A) 12,813 8,749 46 12,813 11,329 13
Non-GAAP
Net Income
Per Share,
Diluted (A) 0.21 0.15 39 0.21 0.19 13
EBITDA (B) 13,929 9,958 40 13,929 11,725 19
Cash, Cash
Equivalents
and Marketable
Securities-
Current 79,923 47,984 67 79,923 79,917 0
(A) Non-GAAP net income and non-GAAP net income per share exclude non-cash
share-based compensation expenses. (See, ''Use of Non-GAAP Measures,"
for more details.)
(B) 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.)
Consolidated revenues for the first quarter increased 51 percent to a
record $54.6 million from $36.1 million in the same period of 2007, and
grew 15 percent from $47.7 million for the fourth quarter of 2007. Driving
the year-over-year and quarter-over-quarter improvements was strong organic
growth in GigaMedia's poker software and Asian online games businesses.
Period results also benefited from the consolidation and growth of T2CN,
GigaMedia's online game platform in China. Significantly increased momentum
in T2CN in the first quarter of 2008 reflected successful integration of
T2CN with GigaMedia and execution of initial strategic growth initiatives
to leverage its leading position in China's large online sports games
market.
Consolidated gross profit for the first quarter increased 50 percent to
$43.1 million from $28.8 million in 2007 and increased 15 percent quarter-
over-quarter from $37.6 million, driven by continued robust gross profit
growth in the gaming software business and accelerating contributions from
the Asian online games business, whose gross profit more than doubled from
the same period in 2007 and grew 37 percent quarter-over-quarter.
First-quarter consolidated gross profit margin was 79.0 percent, comparable
with 79.7 percent a year ago and 78.8 percent in the previous quarter.
Consolidated operating income for the first quarter grew 49 percent
year- over-year to a record $12.9 million from $8.7 million in the first
quarter of 2007 and increased 39 percent quarter-over-quarter from $9.3
million in the fourth quarter of 2007.
Driving the year-over-year increase in consolidated operating income
was strong operating income growth in the gaming software and Asian online
games businesses, which offset declining contributions from the legacy
broadband ISP business.
The quarter-over-quarter increase in consolidated operating income
reflected strong sequential growth in revenues and operating margin. The
company's consolidated operating margin in the first quarter of 2008 was
23.6 percent, a significant increase from 19.5 percent in the previous
quarter. The increase in consolidated operating margin was due to an
improvement in the operating margin of the gaming software business as a
result of reduced marketing expenses, combined with a sharp increase in the
operating margin of the Asian online games business in the first quarter of
2008 as revenues surged. (See, ''Business Unit Results,'' for more
details.)
Consolidated non-operating income during the first quarter of 2008,
totaled approximately $500 thousand, up from non-operating income of
approximately $87 thousand a year ago and $353 thousand recorded in the
previous quarter. The quarterly sequential increase was primarily due to
increases in interest income and gains on sales of marketable securities.
Consolidated net income for the quarter increased 43 percent to a
record $12.1 million from $8.5 million in 2007, and grew by 13 percent from
the previous quarter. The year-over-year and quarter-over-quarter increases
were due to the aforementioned factors impacting operating income and
non-operating income, which were partially offset by increases in minority
interest income deductions during the periods and increased tax expenses as
a portion of tax losses carried forward was either utilized or expired in
2007. GigaMedia's effective tax rate during the first quarter of 2008 was
approximately 3.9 percent.
GigaMedia also reports non-GAAP financial measures, including non-GAAP
consolidated operating income, non-GAAP consolidated net income, non-GAAP
basic and fully-diluted earnings per share, 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, non-GAAP consolidated net
income, and non-GAAP basic and fully-diluted earnings per share all exclude
non-cash share-based compensation charges. First-quarter non-cash
share-based compensation charges were $767 thousand, up from $709 thousand
in the fourth quarter.
Non-GAAP consolidated operating income was $13.7 million in the first
quarter of 2008, up 53 percent year-over-year and up 37 percent
quarter-over- quarter. Non-GAAP consolidated net income in the first
quarter was $12.8 million, representing an increase of 46 percent over the
same period last year and a 13 percent increase over the fourth quarter of
2007. Non-GAAP basic earnings per share were $0.24, a 41 percent increase
from 2007 and an increase of 13 percent quarter-over-quarter. Non-GAAP
fully-diluted earnings per share were $0.21, a 39 percent increase from the
same period last year and up 13 percent compared with the fourth quarter.
Consolidated EBITDA for the first quarter of 2008 grew 40 percent to
$13.9 million versus the same period last year, and was up 19 percent from
the fourth quarter of 2007. Operating cash flow for the first quarter of
2008 was $9.0 million. Capital expenditures totaled $2.8 million for the
period.
GigaMedia continued to maintain a robust balance sheet. Cash, cash
equivalents and marketable securities-current were $79.9 million, unchanged
from the fourth quarter of 2007. Total loans amounted to $32.2 million at
the end of the first quarter of 2008.
Business Unit Results
GigaMedia Limited conducts its online entertainment business in two
business segments. The gaming software segment develops and licenses online
poker and casino gaming software solutions and application services,
primarily targeting emerging continental European markets. The Asian online
games segment operates a suite of play-for-fun online games, mainly
targeting online gamers in Greater China. A third segment, other business,
consists of GigaMedia's legacy broadband ISP operations in Taiwan.
Gaming Software Business
(unaudited, in US$ 1Q08 1Q07 Change 1Q08 4Q07 Change
thousands) (%) (%)
Revenues 38,301 26,271 46 38,301 34,159 12
Gross Profit 32,754 22,675 44 32,754 29,734 10
Operating Income 11,515 8,699 32 11,515 9,818 17
Net Income Before 11,503 8,422 37 11,503 10,561 9
Minority Interests
Net Income 11,396 8,292 37 11,396 10,871 5
EBITDA 11,913 8,858 34 11,913 10,859 10
The gaming software business continued to build on its market leading
position, delivering record revenues and net income, driven by strong
execution in both the poker and casino software businesses.
First-quarter revenues in the gaming software business increased 46
percent year-over-year to a record $38.3 million from $26.3 million and by
12 percent quarter-over-quarter from $34.2 million.
GigaMedia's revenues from the gaming software business derived from
providing poker and casino software and services to its master licensee
were $16.9 million during the first quarter of 2008. This represented an
increase of 40 percent from $12.1 million in 2007 and a 7 percent increase
from the fourth quarter of 2007, which totaled $15.8 million. Such revenues
are eliminated in consolidation.
Driving this performance were record revenues in GigaMedia's poker
software business resulting from continued strong growth in real-money
players on Everest Poker, one of the world's leading poker sites. Results
also benefited from strong year-over-year and quarterly sequential growth
in the casino software business.
Revenues in the poker software vertical were $29.7 million, up 56
percent from the same year-ago period and up 11 percent from the previous
quarter. Poker software represented 77 percent of the business unit's total
first- quarter 2008 revenues. Approximately 208,000 active depositing
real-money customers played on the poker platform during the first quarter,
up 14 percent from the previous quarter. During the quarter, approximately
68,000 new depositing real-money poker players were added, up 19 percent
quarter-over- quarter.
Revenues in the casino software vertical were $8.6 million during the
first quarter. This represented a 20 percent increase from the same period
in 2007 and an increase of 17 percent from the previous quarter. Rollout of
new video slot games combined with strong cross-marketing to Everest poker
players in the first quarter contributed to the strong revenue growth.
First-quarter gross profit grew 44 percent to $32.8 million from $22.7
million in 2007 and was up 10 percent from $29.7 million in the fourth
quarter, reflecting strong revenue growth in the periods. Gross profit
margin remained relatively stable year-over-year at 85.5 percent versus
86.3 percent in 2007 and declined slightly from 87.0 percent in the
preceding quarter, due primarily to increases in bandwidth, engineering and
customer service costs.
Total first-quarter selling and marketing expenses were $15.9 million,
up 50 percent from $10.6 million in 2007 and down 3 percent
quarter-over-quarter from $16.5 million. The year-over-year increase was
attributable to increases in payments to marketing affiliates as a result
of strong revenue growth, as well as increases in discretionary mass media
promotions. The quarter-over- quarter variation was largely due to a
reduction in discretionary mass media promotional expenses in the first
quarter of 2008 following a series of strong media campaigns in the fourth
quarter targeting strategic brand-building opportunities, which resulted in
higher than normal selling and marketing expenses in the fourth quarter.
Operating income grew 32 percent to a record $11.5 million from $8.7
million in 2007 and by 17 percent quarter-over-quarter from $9.8 million.
Operating margin declined year-over-year to 30.1 percent from 33.1 percent
in 2007 due to increases in product development and engineering expenses
and selling and marketing expenses. Operating margin increased from 28.7
percent in the fourth quarter of 2007, reflecting the aforementioned
sequential reduction in selling and marketing expenses from the fourth
quarter.
Net income rose 37 percent to a record $11.4 million from $8.3 million
in 2007 and by 5 percent sequentially from $10.9 million in the fourth
quarter. EBITDA increased 34 percent year-over-year and grew 10 percent
from the fourth quarter of 2007 to $11.9 million from $10.9 million.
Capital expenditures totaled approximately $1.7 million for the first
quarter.
Asian Online Games Business
(unaudited, in 1Q08 1Q07 Change 1Q08 4Q07 Change
US$ thousands) (%) (%)
Revenues 12,890 5,471 136 12,890 10,074 28
Gross Profit 9,395 4,258 121 9,395 6,847 37
Operating Income 3,708 818 353 3,708 1,219 204
Net Income Before 3,263 889 267 3,263 1,138 187
Minority Interests
Net Income 2,557 1,037 147 2,557 1,298 97
EBITDA 3,665 1,488 146 3,665 2,058 78
The Asian online games business more than tripled operating income
sequentially on record revenues. Results reflected strong execution,
favorable seasonality, and the inherent scalability of the business.
First-quarter revenues in the Asian online games business increased 136
percent to a record $12.9 million from $5.5 million a year ago and were up
28 percent from $10.1 million in the previous quarter. Strong organic
growth in FunTown in Taiwan and Hong Kong and consolidation of T2CN in
China drove the year-over-year improvement. Quarter-over-quarter revenue
growth was led by a 48 percent sequential improvement in T2CN revenues.
First-quarter revenues from FunTown grew 28 percent to $7.0 million
from $5.5 million in 2007 and increased 15 percent from $6.1 million in the
previous quarter. Year-over-year and quarter-over-quarter growth reflected
strong contributions from the advanced casual game Tales Runner, the
favorable impact of effective mass media marketing and successful MahJong
game events around the Chinese New Year holiday, and appreciation of the
New Taiwan dollar against the U.S. dollar. Average monthly active paying
accounts were approximately 111,000 during the first quarter, down 5
percent from the fourth quarter, but average monthly revenue per active
paying account was $21.09 during the period, up 21 percent
quarter-over-quarter. Peak concurrent users were approximately 43,000, a
decrease of 12 percent from the fourth quarter.
Total revenues for T2CN in the period climbed sharply to $5.9 million,
representing a 48 percent increase from $4.0 million in the fourth quarter.
Strong revenue growth was attributable to increased revenue from FreeStyle
driven by new game patches, marketing of the game in conjunction with a hit
movie, and increased online gamer activity resulting from a severe
snowstorm around and during Chinese New Year. Appreciation of the renminbi
against the U.S. dollar also contributed to the increase. T2CN's average
monthly active paying accounts were approximately 514,000 during the first
quarter, up 43 percent from the fourth quarter, and average monthly revenue
per active paying account was $3.86 during the period, up 12 percent
quarter-over-quarter. Peak concurrent users of FreeStyle were approximately
185,000, an increase of 7 percent from the fourth quarter.
First-quarter gross profit grew 121 percent to $9.4 million from $4.3
million in 2007 and increased by 37 percent sequentially from $6.8 million
as a result of strong revenue growth. Gross profit margin decreased
year-over- year to 72.9 percent from 77.8 percent in 2007, attributable to
the increase in contributions from licensed games, which carry lower
margins than self- developed games. Gross profit margin grew significantly
sequentially from 68.0 percent in the fourth quarter of 2007 as a result of
strong sequential revenue growth on existing game offerings.
Total selling and marketing expenses in the fourth quarter grew 15
percent to $2.6 million from $2.3 million in 2007 and declined 9 percent
from $2.9 million in the previous quarter. The year-over-year increase was
due to consolidation of T2CN. The quarter-over-quarter decrease was due to
a sequential reduction in mass media promotional/advertising expenses.
Operating income jumped 353 percent from the same period in 2007 to a
record $3.7 million from $818 thousand, and climbed 204 percent from the
previous quarter. First-quarter 2008 operating margin increased sharply to
28.8 percent from 15.0 percent in 2007 and from 12.1 percent in the
previous quarter reflecting the inherent scalability of the Asian online
games business unit. Specifically, operating margin grew year-over-year
primarily due to strong revenue growth and effective control of sales and
marketing expenses, which offset the period decline in gross margin and
higher general and administrative expenses related to expansion and
integration of the Asian online business. The quarter-over-quarter increase
in operating margin was mainly attributable to the aforementioned gross
profit margin expansion and sequential reduction in selling and marketing
expenses.
Net income grew 147 percent to a record $2.6 million from $1.0 million
in 2007 and by 97 percent sequentially from $1.3 million in the fourth
quarter. The strong growth was due to the aforementioned factors impacting
operating income, which more than offset increased minority interest income
deductions during the periods.
EBITDA increased 146 percent to $3.7 million from $1.5 million in the
first quarter of 2007 and grew 78 percent from $2.1 million in the fourth
quarter. Capital expenditures totaled approximately $622 thousand for the
first quarter.
Other Business - Legacy Broadband ISP Business
(unaudited, in US$ 1Q08 1Q07 Change 1Q08 4Q07 Change
thousands) (%) (%)
Revenues 3,444 4,353 -21 3,444 3,492 -1
Gross Profit 1,001 1,820 -45 1,001 956 5
Operating Income (Loss) 214 656 -67 214 (107) NA
Net Income (Loss) 159 570 -72 159 40 299
EBITDA 400 1,122 -64 400 271 48
Revenues in the legacy broadband ISP business in the first quarter of
2008 were $3.4 million. Revenues during the period decreased 21 percent
year-over- year and 1 percent quarter-over-quarter. First-quarter 2008
operating income was $214 thousand, compared to $656 thousand in the first
quarter of 2007 and a loss of $107 thousand in the fourth quarter of 2007.
Net income in the first quarter of 2008 decreased to $159 thousand from
$570 thousand in the same period of 2007 and increased from $40 thousand in
the fourth quarter of 2007.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May 13, 2008. Given potential changes in economic
conditions and consumer spending, the evolving nature of gaming software,
online games and broadband, and various other risk factors, including those
discussed in the company's 2006 Annual Report or 20-F filing with the U.S.
Securities and Exchange Commission referenced below, actual results may
differ materially.
Gaming software business. GigaMedia expects strong revenue growth in
its gaming software business for the full year 2008. Nonetheless, the
company expects second-quarter revenues to be largely in line with those of
the first quarter, reflecting an industry-wide slowdown due to summer
seasonality. The seasonal slowdown may be offset in part by the launch of
new products and offerings such as casino games in the Everest poker
client, as well as traditional Asian gaming products.
Asian online games business. The company expects revenues to climb
sharply in the second half of 2008, driven by major new game launches. In
Taiwan and Hong Kong, GigaMedia expects major new game launches to include
NBA Street Online, Holic and Hellgate: London. In China, GigaMedia expects
to launch Holic in the fourth quarter of 2008.
Broadband ISP business. GigaMedia has retained financial advisors to
assist with the potential disposal of this legacy business unit and remains
in discussions with identified buyers concerning a proposed sale of the
business.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements presented
in accordance with GAAP, the company uses the following measures defined as
non- GAAP by the SEC: EBITDA, and US GAAP operating income, net income and
basic and fully-diluted earnings per share 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.
GigaMedia believes these non-GAAP financial measures provide meaningful
supplemental information regarding GigaMedia's performance by excluding
certain expenses that may not be indicative of the company's 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. The company believes that the
presentation of non-GAAP operating income, net income, and basic and fully-
diluted earnings per share 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. GigaMedia
believes that both management and investors benefit from referring to these
non-GAAP financial measures in assessing the company's performance and when
planning and forecasting future periods. GigaMedia believes 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, net
income excluding share-based compensation expenses, and basic and
fully-diluted earnings per share 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 the company's business. A limitation of using EBITDA
is that it does not include all items that impact the company's 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.
About the Numbers in This Release
Full-year and 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 first quarter of 2008 benefited
from GigaMedia's investment in T2CN. GigaMedia increased its total equity
ownership of T2CN to approximately 58 percent in July 2007 and began to
consolidate T2CN financial results with those of the company in June 2007.
As a result, consolidated financial results for the first quarter of 2008
may not be comparable with other periods.
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 certain 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.
Conference Call and Webcast
GigaMedia will hold a conference call at 8:00 p.m. Taipei/Hong Kong
Time on May 13, 2008, which is 8:00 a.m. Eastern Daylight Time on May 13,
2008 in the United States, to discuss the company's first-quarter
performance. Individual investors can listen to a webcast of the call at
http://ir.giga.net.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 and licenses software for online gaming. GigaMedia also operates
online games businesses including FunTown, a leading Asian casual games
operator and the world's largest online MahJong game site in terms of
revenue, and T2CN, a leading online sports game operator in China. 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 2007.
For further information contact:
Brad Miller, Investor Relations Director
Country/City Code 8862 Tel: 3518-1107
brad.miller@gigamedia.com.tw
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
3/31/2008 12/31/2007 3/31/2007
unaudited unaudited unaudited
USD USD USD
Operating revenues
Gaming software and service revenues 38,300,753 34,158,749 26,271,492
Online game and service revenues 12,889,501 10,073,723 5,470,542
Internet access and service revenues 3,435,122 3,471,812 4,339,044
Other revenues 3,920 3,440 4,541
54,629,296 47,707,724 36,085,619
Operating costs
Cost of gaming software and service
revenues 5,546,637 4,424,939 3,596,457
Cost of online game and service
revenues (includes share-based
compensation expenses under SFAS
123(R) of $12,919, -$11,519, and
$0, respectively) 3,490,688 3,154,691 1,203,259
Cost of Internet access and service
revenues (includes share-based
compensation expenses under SFAS
123(R) of $1,387, $5,928, and $912,
respectively) 2,427,279 2,496,242 2,471,396
Cost of other revenues 15,903 39,592 61,409
11,480,507 10,115,464 7,332,521
Gross profit 43,148,789 37,592,260 28,753,098
Operating expenses
Product development and engineering
expenses (includes share-based
compensation expenses under SFAS
123(R) of $97,110, $93,848, and
$27,631, respectively) 3,366,548 2,766,070 1,821,371
Selling and marketing expenses
(includes share-based compensation
expenses under SFAS 123(R) of
$44,176, $24,962, and $14,093,
respectively) 19,063,717 19,988,099 13,567,410
General and administrative expenses
(includes share-based compensation
expenses under SFAS 123(R) of
$611,810, $595,695, and $248,128,
respectively) 7,723,154 5,379,660 4,370,979
Bad debt expenses 87,992 158,982 328,011
30,241,411 28,292,811 20,087,771
Income from operations 12,907,378 9,299,449 8,665,327
Non-operating income (expense)
Interest income 601,397 477,495 195,571
Gain on sales of marketable securities 355,645 97,661 7,076
Interest expense (277,120) (209,855) (107,756)
Foreign exchange gain (loss) - net (237,284) (201,573) (63,253)
Gain (loss) on disposal of property,
plant and equipment (33,565) (63,092) (2,754)
Proportionate share of gain (loss)
under the equity method 0 (192,938) 57,720
Other 91,451 445,359 757
500,524 353,057 87,361
Income before income taxes and
minority interest 13,407,902 9,652,506 8,752,688
Income tax benefit (expense) (517,787) 536,476 (312,392)
Minority interest (813,036) 469,992 18,206
Net income 12,077,079 10,658,974 8,458,502
Earnings per share:
Basic 0.22 0.20 0.16
Diluted 0.20 0.18 0.14
Weighted average shares outstanding:
Basic 53,817,644 53,603,729 51,993,474
Diluted 60,445,440 60,558,257 59,574,298
GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
3/31/2008 12/31/2007 3/31/2007
unaduited unaudited unaudited
USD USD USD
Assets
Current assets
Cash and cash equivalents 75,372,555 68,563,199 32,993,125
Marketable securities - current 4,550,637 11,353,506 14,990,571
Notes and accounts receivable - net 20,532,896 18,291,353 17,874,726
Prepaid expenses 14,192,730 5,614,975 1,984,953
Restricted cash 6,615,992 6,247,308 2,928,875
Other receivable 4,070,840 2,560,909 4,248,505
Other current assets 2,909,000 2,786,108 728,449
Total current assets 128,244,650 115,417,358 75,749,204
Marketable securities - noncurrent 24,017,482 21,017,482 25,000,000
Investments 5,043,466 4,612,226 19,322,008
Property, plant & equipment - net 14,336,714 13,008,487 9,572,431
Goodwill 87,056,365 85,149,279 55,423,333
Intangible assets - net 27,531,011 26,060,034 22,880,168
Prepaid licensing and royalty fees 18,240,842 16,738,665 5,715,801
Other assets 2,047,466 1,861,458 1,249,236
Total assets 306,517,996 283,864,989 214,912,181
Liabilities & shareholders' equity
Short-term borrowings 32,231,080 33,300,898 21,148,515
Notes and accounts payable 1,817,471 1,922,370 1,447,736
Accrued compensation 4,717,482 5,750,272 2,284,621
Accrued expenses 10,010,213 9,150,983 6,684,426
Player account balances 32,244,664 27,136,396 14,675,701
Other current liabilities 17,416,758 14,651,120 19,937,255
Total current liabilities 98,437,668 91,912,039 66,178,254
Other liabilities 1,491,673 1,477,789 1,650,667
Total liabilities 99,929,341 93,389,828 67,828,921
Minority interests 10,749,268 9,810,258 1,317,102
Shareholders' equity 195,839,387 180,664,903 145,766,158
Total liabilities & shareholders'
equity 306,517,996 283,864,989 214,912,181
GIGAMEDIA LIMITED
Reconciliations of Non-GAAP Results of Operations
Three months ended
3/31/2008 12/31/2007 3/31/2007
unaudited unaudited unaudited
USD USD USD
Income from operations
GAAP result 12,907,378 9,299,449 8,665,327
Adjustment: share-based
compensation 767,402 708,914 290,764
Non-GAAP result 13,674,780 10,008,363 8,956,091
Net income
GAAP result 12,077,079 10,658,974 8,458,502
Adjustment: share-based
compensation 735,553 669,888 290,764
Non-GAAP result 12,812,632 11,328,862 8,749,266
Basic earnings per share
GAAP result 0.22 0.20 0.16
Adjustment: share-based
compensation 0.02 0.01 0.01
Non-GAAP result 0.24 0.21 0.17
Diluted earnings per share
GAAP result 0.20 0.18 0.14
Adjustment: share-based
compensation 0.01 0.01 0.01
Non-GAAP result 0.21 0.19 0.15
Reconciliation of Net Income to
EBITDA
Net income 12,077,079 10,658,974 8,458,502
Depreciation 571,939 570,471 588,903
Amortization 960,721 830,934 786,451
Interest (income) expense (97,960) (58,604) (41,391)
Tax (benefit) expense 416,982 (276,830) 165,358
EBITDA 13,928,761 11,724,945 9,957,823
See Also
-- Consolidated revenues increased 51 percent to a record US$54.6 million
from US$36.1 million in the same quarter in 2007 and grew by 15 percent
from the previous quarter.
-- Consolidated operating income climbed 49 percent to a record US$12.9
million from US$8.7 million in the same quarter in 2007 and jumped by 39
percent from the previous quarter.
-- Consolidated net income increased 43 percent to a record US$12.1 million
from US$8.5 million in the same quarter in 2007 and grew by 13 percent from
the previous quarter. GAAP basic and fully-diluted earnings per share were
US$0.22 and US$0.20, respectively.
-- Non-GAAP net income was US$12.8 million. Non-GAAP basic and fully-
diluted earnings per share were US$0.24 and US$0.21, respectively, which
exclude non-cash share-based compensation expenses.
HONG KONG, May 13 /Xinhua-PRNewswire-FirstCall/ -- GigaMedia Limited
(Nasdaq: GIGM) announced today strong first-quarter results with revenues
climbing 51 percent to a record $54.6 million, and operating income rising
49 percent to a record $12.9 million, both in comparison to first quarter
2007, driven by continued strong growth in its poker software business in
continental Europe and sharply increased contributions from its online
games business in Asia.
Net income was a record US$12.1 million, up 43 percent year-over-year
and up 13 percent sequentially over the last quarter of 2007. First-quarter
2008 non-GAAP basic and diluted earnings per share were $0.24 and $0.21,
respectively, which exclude non-cash share-based compensation expenses.
''GigaMedia delivered an excellent first quarter based on solid
execution in all businesses: strong growth in our world-leading poker
software business, record results in our casino software business, and an
exciting lift in our Asian online games business,'' stated President Thomas
Hui. ''We are driving outstanding growth from our existing products,
pointing to even more powerful growth to come from the new offerings we are
rolling out this year.''
''We start 2008 with an excellent quarter, a strong foundation from
which to introduce a new line-up of top games and offerings," stated CEO
Arthur Wang. ''Our plans to launch in Japan this quarter, to add casino
products to our poker client and to acquire or partner with a sports
betting firm all should drive even greater momentum and make 2008 another
record year.''
Consolidated Financial Results
GIGAMEDIA 1Q08 CONSOLIDATED FINANCIAL RESULTS
(unaudited, 1Q08 1Q07 Change 1Q08 4Q07 Change
all figures (%) (%)
in US$
thousands,
except per
share
amounts)
Revenues 54,629 36,086 51 54,629 47,708 15
Gross Profit 43,149 28,753 50 43,149 37,592 15
Operating
Income 12,907 8,665 49 12,907 9,299 39
GAAP Net
Income 12,077 8,459 43 12,077 10,659 13
GAAP Net
Income Per
Share,
Diluted 0.20 0.14 41 0.20 0.18 14
Non-GAAP Net
Income (A) 12,813 8,749 46 12,813 11,329 13
Non-GAAP
Net Income
Per Share,
Diluted (A) 0.21 0.15 39 0.21 0.19 13
EBITDA (B) 13,929 9,958 40 13,929 11,725 19
Cash, Cash
Equivalents
and Marketable
Securities-
Current 79,923 47,984 67 79,923 79,917 0
(A) Non-GAAP net income and non-GAAP net income per share exclude non-cash
share-based compensation expenses. (See, ''Use of Non-GAAP Measures,"
for more details.)
(B) 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.)
Consolidated revenues for the first quarter increased 51 percent to a
record $54.6 million from $36.1 million in the same period of 2007, and
grew 15 percent from $47.7 million for the fourth quarter of 2007. Driving
the year-over-year and quarter-over-quarter improvements was strong organic
growth in GigaMedia's poker software and Asian online games businesses.
Period results also benefited from the consolidation and growth of T2CN,
GigaMedia's online game platform in China. Significantly increased momentum
in T2CN in the first quarter of 2008 reflected successful integration of
T2CN with GigaMedia and execution of initial strategic growth initiatives
to leverage its leading position in China's large online sports games
market.
Consolidated gross profit for the first quarter increased 50 percent to
$43.1 million from $28.8 million in 2007 and increased 15 percent quarter-
over-quarter from $37.6 million, driven by continued robust gross profit
growth in the gaming software business and accelerating contributions from
the Asian online games business, whose gross profit more than doubled from
the same period in 2007 and grew 37 percent quarter-over-quarter.
First-quarter consolidated gross profit margin was 79.0 percent, comparable
with 79.7 percent a year ago and 78.8 percent in the previous quarter.
Consolidated operating income for the first quarter grew 49 percent
year- over-year to a record $12.9 million from $8.7 million in the first
quarter of 2007 and increased 39 percent quarter-over-quarter from $9.3
million in the fourth quarter of 2007.
Driving the year-over-year increase in consolidated operating income
was strong operating income growth in the gaming software and Asian online
games businesses, which offset declining contributions from the legacy
broadband ISP business.
The quarter-over-quarter increase in consolidated operating income
reflected strong sequential growth in revenues and operating margin. The
company's consolidated operating margin in the first quarter of 2008 was
23.6 percent, a significant increase from 19.5 percent in the previous
quarter. The increase in consolidated operating margin was due to an
improvement in the operating margin of the gaming software business as a
result of reduced marketing expenses, combined with a sharp increase in the
operating margin of the Asian online games business in the first quarter of
2008 as revenues surged. (See, ''Business Unit Results,'' for more
details.)
Consolidated non-operating income during the first quarter of 2008,
totaled approximately $500 thousand, up from non-operating income of
approximately $87 thousand a year ago and $353 thousand recorded in the
previous quarter. The quarterly sequential increase was primarily due to
increases in interest income and gains on sales of marketable securities.
Consolidated net income for the quarter increased 43 percent to a
record $12.1 million from $8.5 million in 2007, and grew by 13 percent from
the previous quarter. The year-over-year and quarter-over-quarter increases
were due to the aforementioned factors impacting operating income and
non-operating income, which were partially offset by increases in minority
interest income deductions during the periods and increased tax expenses as
a portion of tax losses carried forward was either utilized or expired in
2007. GigaMedia's effective tax rate during the first quarter of 2008 was
approximately 3.9 percent.
GigaMedia also reports non-GAAP financial measures, including non-GAAP
consolidated operating income, non-GAAP consolidated net income, non-GAAP
basic and fully-diluted earnings per share, 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, non-GAAP consolidated net
income, and non-GAAP basic and fully-diluted earnings per share all exclude
non-cash share-based compensation charges. First-quarter non-cash
share-based compensation charges were $767 thousand, up from $709 thousand
in the fourth quarter.
Non-GAAP consolidated operating income was $13.7 million in the first
quarter of 2008, up 53 percent year-over-year and up 37 percent
quarter-over- quarter. Non-GAAP consolidated net income in the first
quarter was $12.8 million, representing an increase of 46 percent over the
same period last year and a 13 percent increase over the fourth quarter of
2007. Non-GAAP basic earnings per share were $0.24, a 41 percent increase
from 2007 and an increase of 13 percent quarter-over-quarter. Non-GAAP
fully-diluted earnings per share were $0.21, a 39 percent increase from the
same period last year and up 13 percent compared with the fourth quarter.
Consolidated EBITDA for the first quarter of 2008 grew 40 percent to
$13.9 million versus the same period last year, and was up 19 percent from
the fourth quarter of 2007. Operating cash flow for the first quarter of
2008 was $9.0 million. Capital expenditures totaled $2.8 million for the
period.
GigaMedia continued to maintain a robust balance sheet. Cash, cash
equivalents and marketable securities-current were $79.9 million, unchanged
from the fourth quarter of 2007. Total loans amounted to $32.2 million at
the end of the first quarter of 2008.
Business Unit Results
GigaMedia Limited conducts its online entertainment business in two
business segments. The gaming software segment develops and licenses online
poker and casino gaming software solutions and application services,
primarily targeting emerging continental European markets. The Asian online
games segment operates a suite of play-for-fun online games, mainly
targeting online gamers in Greater China. A third segment, other business,
consists of GigaMedia's legacy broadband ISP operations in Taiwan.
Gaming Software Business
(unaudited, in US$ 1Q08 1Q07 Change 1Q08 4Q07 Change
thousands) (%) (%)
Revenues 38,301 26,271 46 38,301 34,159 12
Gross Profit 32,754 22,675 44 32,754 29,734 10
Operating Income 11,515 8,699 32 11,515 9,818 17
Net Income Before 11,503 8,422 37 11,503 10,561 9
Minority Interests
Net Income 11,396 8,292 37 11,396 10,871 5
EBITDA 11,913 8,858 34 11,913 10,859 10
The gaming software business continued to build on its market leading
position, delivering record revenues and net income, driven by strong
execution in both the poker and casino software businesses.
First-quarter revenues in the gaming software business increased 46
percent year-over-year to a record $38.3 million from $26.3 million and by
12 percent quarter-over-quarter from $34.2 million.
GigaMedia's revenues from the gaming software business derived from
providing poker and casino software and services to its master licensee
were $16.9 million during the first quarter of 2008. This represented an
increase of 40 percent from $12.1 million in 2007 and a 7 percent increase
from the fourth quarter of 2007, which totaled $15.8 million. Such revenues
are eliminated in consolidation.
Driving this performance were record revenues in GigaMedia's poker
software business resulting from continued strong growth in real-money
players on Everest Poker, one of the world's leading poker sites. Results
also benefited from strong year-over-year and quarterly sequential growth
in the casino software business.
Revenues in the poker software vertical were $29.7 million, up 56
percent from the same year-ago period and up 11 percent from the previous
quarter. Poker software represented 77 percent of the business unit's total
first- quarter 2008 revenues. Approximately 208,000 active depositing
real-money customers played on the poker platform during the first quarter,
up 14 percent from the previous quarter. During the quarter, approximately
68,000 new depositing real-money poker players were added, up 19 percent
quarter-over- quarter.
Revenues in the casino software vertical were $8.6 million during the
first quarter. This represented a 20 percent increase from the same period
in 2007 and an increase of 17 percent from the previous quarter. Rollout of
new video slot games combined with strong cross-marketing to Everest poker
players in the first quarter contributed to the strong revenue growth.
First-quarter gross profit grew 44 percent to $32.8 million from $22.7
million in 2007 and was up 10 percent from $29.7 million in the fourth
quarter, reflecting strong revenue growth in the periods. Gross profit
margin remained relatively stable year-over-year at 85.5 percent versus
86.3 percent in 2007 and declined slightly from 87.0 percent in the
preceding quarter, due primarily to increases in bandwidth, engineering and
customer service costs.
Total first-quarter selling and marketing expenses were $15.9 million,
up 50 percent from $10.6 million in 2007 and down 3 percent
quarter-over-quarter from $16.5 million. The year-over-year increase was
attributable to increases in payments to marketing affiliates as a result
of strong revenue growth, as well as increases in discretionary mass media
promotions. The quarter-over- quarter variation was largely due to a
reduction in discretionary mass media promotional expenses in the first
quarter of 2008 following a series of strong media campaigns in the fourth
quarter targeting strategic brand-building opportunities, which resulted in
higher than normal selling and marketing expenses in the fourth quarter.
Operating income grew 32 percent to a record $11.5 million from $8.7
million in 2007 and by 17 percent quarter-over-quarter from $9.8 million.
Operating margin declined year-over-year to 30.1 percent from 33.1 percent
in 2007 due to increases in product development and engineering expenses
and selling and marketing expenses. Operating margin increased from 28.7
percent in the fourth quarter of 2007, reflecting the aforementioned
sequential reduction in selling and marketing expenses from the fourth
quarter.
Net income rose 37 percent to a record $11.4 million from $8.3 million
in 2007 and by 5 percent sequentially from $10.9 million in the fourth
quarter. EBITDA increased 34 percent year-over-year and grew 10 percent
from the fourth quarter of 2007 to $11.9 million from $10.9 million.
Capital expenditures totaled approximately $1.7 million for the first
quarter.
Asian Online Games Business
(unaudited, in 1Q08 1Q07 Change 1Q08 4Q07 Change
US$ thousands) (%) (%)
Revenues 12,890 5,471 136 12,890 10,074 28
Gross Profit 9,395 4,258 121 9,395 6,847 37
Operating Income 3,708 818 353 3,708 1,219 204
Net Income Before 3,263 889 267 3,263 1,138 187
Minority Interests
Net Income 2,557 1,037 147 2,557 1,298 97
EBITDA 3,665 1,488 146 3,665 2,058 78
The Asian online games business more than tripled operating income
sequentially on record revenues. Results reflected strong execution,
favorable seasonality, and the inherent scalability of the business.
First-quarter revenues in the Asian online games business increased 136
percent to a record $12.9 million from $5.5 million a year ago and were up
28 percent from $10.1 million in the previous quarter. Strong organic
growth in FunTown in Taiwan and Hong Kong and consolidation of T2CN in
China drove the year-over-year improvement. Quarter-over-quarter revenue
growth was led by a 48 percent sequential improvement in T2CN revenues.
First-quarter revenues from FunTown grew 28 percent to $7.0 million
from $5.5 million in 2007 and increased 15 percent from $6.1 million in the
previous quarter. Year-over-year and quarter-over-quarter growth reflected
strong contributions from the advanced casual game Tales Runner, the
favorable impact of effective mass media marketing and successful MahJong
game events around the Chinese New Year holiday, and appreciation of the
New Taiwan dollar against the U.S. dollar. Average monthly active paying
accounts were approximately 111,000 during the first quarter, down 5
percent from the fourth quarter, but average monthly revenue per active
paying account was $21.09 during the period, up 21 percent
quarter-over-quarter. Peak concurrent users were approximately 43,000, a
decrease of 12 percent from the fourth quarter.
Total revenues for T2CN in the period climbed sharply to $5.9 million,
representing a 48 percent increase from $4.0 million in the fourth quarter.
Strong revenue growth was attributable to increased revenue from FreeStyle
driven by new game patches, marketing of the game in conjunction with a hit
movie, and increased online gamer activity resulting from a severe
snowstorm around and during Chinese New Year. Appreciation of the renminbi
against the U.S. dollar also contributed to the increase. T2CN's average
monthly active paying accounts were approximately 514,000 during the first
quarter, up 43 percent from the fourth quarter, and average monthly revenue
per active paying account was $3.86 during the period, up 12 percent
quarter-over-quarter. Peak concurrent users of FreeStyle were approximately
185,000, an increase of 7 percent from the fourth quarter.
First-quarter gross profit grew 121 percent to $9.4 million from $4.3
million in 2007 and increased by 37 percent sequentially from $6.8 million
as a result of strong revenue growth. Gross profit margin decreased
year-over- year to 72.9 percent from 77.8 percent in 2007, attributable to
the increase in contributions from licensed games, which carry lower
margins than self- developed games. Gross profit margin grew significantly
sequentially from 68.0 percent in the fourth quarter of 2007 as a result of
strong sequential revenue growth on existing game offerings.
Total selling and marketing expenses in the fourth quarter grew 15
percent to $2.6 million from $2.3 million in 2007 and declined 9 percent
from $2.9 million in the previous quarter. The year-over-year increase was
due to consolidation of T2CN. The quarter-over-quarter decrease was due to
a sequential reduction in mass media promotional/advertising expenses.
Operating income jumped 353 percent from the same period in 2007 to a
record $3.7 million from $818 thousand, and climbed 204 percent from the
previous quarter. First-quarter 2008 operating margin increased sharply to
28.8 percent from 15.0 percent in 2007 and from 12.1 percent in the
previous quarter reflecting the inherent scalability of the Asian online
games business unit. Specifically, operating margin grew year-over-year
primarily due to strong revenue growth and effective control of sales and
marketing expenses, which offset the period decline in gross margin and
higher general and administrative expenses related to expansion and
integration of the Asian online business. The quarter-over-quarter increase
in operating margin was mainly attributable to the aforementioned gross
profit margin expansion and sequential reduction in selling and marketing
expenses.
Net income grew 147 percent to a record $2.6 million from $1.0 million
in 2007 and by 97 percent sequentially from $1.3 million in the fourth
quarter. The strong growth was due to the aforementioned factors impacting
operating income, which more than offset increased minority interest income
deductions during the periods.
EBITDA increased 146 percent to $3.7 million from $1.5 million in the
first quarter of 2007 and grew 78 percent from $2.1 million in the fourth
quarter. Capital expenditures totaled approximately $622 thousand for the
first quarter.
Other Business - Legacy Broadband ISP Business
(unaudited, in US$ 1Q08 1Q07 Change 1Q08 4Q07 Change
thousands) (%) (%)
Revenues 3,444 4,353 -21 3,444 3,492 -1
Gross Profit 1,001 1,820 -45 1,001 956 5
Operating Income (Loss) 214 656 -67 214 (107) NA
Net Income (Loss) 159 570 -72 159 40 299
EBITDA 400 1,122 -64 400 271 48
Revenues in the legacy broadband ISP business in the first quarter of
2008 were $3.4 million. Revenues during the period decreased 21 percent
year-over- year and 1 percent quarter-over-quarter. First-quarter 2008
operating income was $214 thousand, compared to $656 thousand in the first
quarter of 2007 and a loss of $107 thousand in the fourth quarter of 2007.
Net income in the first quarter of 2008 decreased to $159 thousand from
$570 thousand in the same period of 2007 and increased from $40 thousand in
the fourth quarter of 2007.
Business Outlook
The following forward-looking statements reflect GigaMedia's
expectations as of May 13, 2008. Given potential changes in economic
conditions and consumer spending, the evolving nature of gaming software,
online games and broadband, and various other risk factors, including those
discussed in the company's 2006 Annual Report or 20-F filing with the U.S.
Securities and Exchange Commission referenced below, actual results may
differ materially.
Gaming software business. GigaMedia expects strong revenue growth in
its gaming software business for the full year 2008. Nonetheless, the
company expects second-quarter revenues to be largely in line with those of
the first quarter, reflecting an industry-wide slowdown due to summer
seasonality. The seasonal slowdown may be offset in part by the launch of
new products and offerings such as casino games in the Everest poker
client, as well as traditional Asian gaming products.
Asian online games business. The company expects revenues to climb
sharply in the second half of 2008, driven by major new game launches. In
Taiwan and Hong Kong, GigaMedia expects major new game launches to include
NBA Street Online, Holic and Hellgate: London. In China, GigaMedia expects
to launch Holic in the fourth quarter of 2008.
Broadband ISP business. GigaMedia has retained financial advisors to
assist with the potential disposal of this legacy business unit and remains
in discussions with identified buyers concerning a proposed sale of the
business.
Use of Non-GAAP Measures
To supplement GigaMedia's consolidated financial statements presented
in accordance with GAAP, the company uses the following measures defined as
non- GAAP by the SEC: EBITDA, and US GAAP operating income, net income and
basic and fully-diluted earnings per share 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.
GigaMedia believes these non-GAAP financial measures provide meaningful
supplemental information regarding GigaMedia's performance by excluding
certain expenses that may not be indicative of the company's 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. The company believes that the
presentation of non-GAAP operating income, net income, and basic and fully-
diluted earnings per share 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. GigaMedia
believes that both management and investors benefit from referring to these
non-GAAP financial measures in assessing the company's performance and when
planning and forecasting future periods. GigaMedia believes 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, net
income excluding share-based compensation expenses, and basic and
fully-diluted earnings per share 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 the company's business. A limitation of using EBITDA
is that it does not include all items that impact the company's 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.
About the Numbers in This Release
Full-year and 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 first quarter of 2008 benefited
from GigaMedia's investment in T2CN. GigaMedia increased its total equity
ownership of T2CN to approximately 58 percent in July 2007 and began to
consolidate T2CN financial results with those of the company in June 2007.
As a result, consolidated financial results for the first quarter of 2008
may not be comparable with other periods.
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 certain 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.
Conference Call and Webcast
GigaMedia will hold a conference call at 8:00 p.m. Taipei/Hong Kong
Time on May 13, 2008, which is 8:00 a.m. Eastern Daylight Time on May 13,
2008 in the United States, to discuss the company's first-quarter
performance. Individual investors can listen to a webcast of the call at
http://ir.giga.net.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 and licenses software for online gaming. GigaMedia also operates
online games businesses including FunTown, a leading Asian casual games
operator and the world's largest online MahJong game site in terms of
revenue, and T2CN, a leading online sports game operator in China. 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 2007.
For further information contact:
Brad Miller, Investor Relations Director
Country/City Code 8862 Tel: 3518-1107
brad.miller@gigamedia.com.tw
(Tables to follow)
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENTS OF OPERATIONS
Three months ended
3/31/2008 12/31/2007 3/31/2007
unaudited unaudited unaudited
USD USD USD
Operating revenues
Gaming software and service revenues 38,300,753 34,158,749 26,271,492
Online game and service revenues 12,889,501 10,073,723 5,470,542
Internet access and service revenues 3,435,122 3,471,812 4,339,044
Other revenues 3,920 3,440 4,541
54,629,296 47,707,724 36,085,619
Operating costs
Cost of gaming software and service
revenues 5,546,637 4,424,939 3,596,457
Cost of online game and service
revenues (includes share-based
compensation expenses under SFAS
123(R) of $12,919, -$11,519, and
$0, respectively) 3,490,688 3,154,691 1,203,259
Cost of Internet access and service
revenues (includes share-based
compensation expenses under SFAS
123(R) of $1,387, $5,928, and $912,
respectively) 2,427,279 2,496,242 2,471,396
Cost of other revenues 15,903 39,592 61,409
11,480,507 10,115,464 7,332,521
Gross profit 43,148,789 37,592,260 28,753,098
Operating expenses
Product development and engineering
expenses (includes share-based
compensation expenses under SFAS
123(R) of $97,110, $93,848, and
$27,631, respectively) 3,366,548 2,766,070 1,821,371
Selling and marketing expenses
(includes share-based compensation
expenses under SFAS 123(R) of
$44,176, $24,962, and $14,093,
respectively) 19,063,717 19,988,099 13,567,410
General and administrative expenses
(includes share-based compensation
expenses under SFAS 123(R) of
$611,810, $595,695, and $248,128,
respectively) 7,723,154 5,379,660 4,370,979
Bad debt expenses 87,992 158,982 328,011
30,241,411 28,292,811 20,087,771
Income from operations 12,907,378 9,299,449 8,665,327
Non-operating income (expense)
Interest income 601,397 477,495 195,571
Gain on sales of marketable securities 355,645 97,661 7,076
Interest expense (277,120) (209,855) (107,756)
Foreign exchange gain (loss) - net (237,284) (201,573) (63,253)
Gain (loss) on disposal of property,
plant and equipment (33,565) (63,092) (2,754)
Proportionate share of gain (loss)
under the equity method 0 (192,938) 57,720
Other 91,451 445,359 757
500,524 353,057 87,361
Income before income taxes and
minority interest 13,407,902 9,652,506 8,752,688
Income tax benefit (expense) (517,787) 536,476 (312,392)
Minority interest (813,036) 469,992 18,206
Net income 12,077,079 10,658,974 8,458,502
Earnings per share:
Basic 0.22 0.20 0.16
Diluted 0.20 0.18 0.14
Weighted average shares outstanding:
Basic 53,817,644 53,603,729 51,993,474
Diluted 60,445,440 60,558,257 59,574,298
GIGAMEDIA LIMITED
CONSOLIDATED BALANCE SHEETS
3/31/2008 12/31/2007 3/31/2007
unaduited unaudited unaudited
USD USD USD
Assets
Current assets
Cash and cash equivalents 75,372,555 68,563,199 32,993,125
Marketable securities - current 4,550,637 11,353,506 14,990,571
Notes and accounts receivable - net 20,532,896 18,291,353 17,874,726
Prepaid expenses 14,192,730 5,614,975 1,984,953
Restricted cash 6,615,992 6,247,308 2,928,875
Other receivable 4,070,840 2,560,909 4,248,505
Other current assets 2,909,000 2,786,108 728,449
Total current assets 128,244,650 115,417,358 75,749,204
Marketable securities - noncurrent 24,017,482 21,017,482 25,000,000
Investments 5,043,466 4,612,226 19,322,008
Property, plant & equipment - net 14,336,714 13,008,487 9,572,431
Goodwill 87,056,365 85,149,279 55,423,333
Intangible assets - net 27,531,011 26,060,034 22,880,168
Prepaid licensing and royalty fees 18,240,842 16,738,665 5,715,801
Other assets 2,047,466 1,861,458 1,249,236
Total assets 306,517,996 283,864,989 214,912,181
Liabilities & shareholders' equity
Short-term borrowings 32,231,080 33,300,898 21,148,515
Notes and accounts payable 1,817,471 1,922,370 1,447,736
Accrued compensation 4,717,482 5,750,272 2,284,621
Accrued expenses 10,010,213 9,150,983 6,684,426
Player account balances 32,244,664 27,136,396 14,675,701
Other current liabilities 17,416,758 14,651,120 19,937,255
Total current liabilities 98,437,668 91,912,039 66,178,254
Other liabilities 1,491,673 1,477,789 1,650,667
Total liabilities 99,929,341 93,389,828 67,828,921
Minority interests 10,749,268 9,810,258 1,317,102
Shareholders' equity 195,839,387 180,664,903 145,766,158
Total liabilities & shareholders'
equity 306,517,996 283,864,989 214,912,181
GIGAMEDIA LIMITED
Reconciliations of Non-GAAP Results of Operations
Three months ended
3/31/2008 12/31/2007 3/31/2007
unaudited unaudited unaudited
USD USD USD
Income from operations
GAAP result 12,907,378 9,299,449 8,665,327
Adjustment: share-based
compensation 767,402 708,914 290,764
Non-GAAP result 13,674,780 10,008,363 8,956,091
Net income
GAAP result 12,077,079 10,658,974 8,458,502
Adjustment: share-based
compensation 735,553 669,888 290,764
Non-GAAP result 12,812,632 11,328,862 8,749,266
Basic earnings per share
GAAP result 0.22 0.20 0.16
Adjustment: share-based
compensation 0.02 0.01 0.01
Non-GAAP result 0.24 0.21 0.17
Diluted earnings per share
GAAP result 0.20 0.18 0.14
Adjustment: share-based
compensation 0.01 0.01 0.01
Non-GAAP result 0.21 0.19 0.15
Reconciliation of Net Income to
EBITDA
Net income 12,077,079 10,658,974 8,458,502
Depreciation 571,939 570,471 588,903
Amortization 960,721 830,934 786,451
Interest (income) expense (97,960) (58,604) (41,391)
Tax (benefit) expense 416,982 (276,830) 165,358
EBITDA 13,928,761 11,724,945 9,957,823
See Also
Vanitas
Artist: Vanitas
Genre(s):
Metal
Metal: Death,Black
Metal: Gothic
Rock
Discography:
Lichtgestalten
Year: 2004
Tracks: 10
Der Schatten einer Existenz
Year: 2002
Tracks: 8
Das Leben Ein Traum
Year: 2000
Tracks: 7
Vereinsamt
Year: 1999
Tracks: 7
Jim Broadbent - Broadbents Potter Snub
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