Exhibit 99.1
GIGAMEDIA ANNOUNCES CORRECTION TO
FIRST QUARTER 2004 FINANCIAL RESULTS
TAIPEI, Taiwan, June 3, 2004 - GigaMedia Limited ("GigaMedia" or the "Company")
(NASDAQ: GIGM, www.giga.net.tw), a diversified provider of broadband and
entertainment services, today issued a correction to the Company's balance sheet
as reported in the Company's first quarter 2004 consolidated operating and
financial results issued on May 25, 2004.
The correction results from the elimination of a double-entry in prepaid music
store rental expenses, which requires adjustments of equal amounts to the
Company's current assets and current liabilities. Following this correction,
under current assets the Company's prepaid expenses for the first quarter of
2004 were US$1.3 million instead of the US$4.1 million as originally reported on
May 25, 2004. Under current liabilities, the Company's notes and accounts
payable, accrued expenses, and other current liabilities for the first quarter
of 2004 were US$16.1 million, US$3.7 million and US$3.2 million, respectively,
instead of the respective amounts of US$18.5 million, US$3.9 million and US$3.3
million as previously reported.
The correction does not impact total shareholders' equity.
All corrections will be reflected in a Form 6-K filing to be made with the SEC.
Correct and complete first quarter 2004 financial statements for the Company
follow.
ABOUT GIGAMEDIA
GigaMedia Limited is a diversified provider of broadband and entertainment
services, with headquarters in Taipei, Taiwan. The Company's online/offline
business model provides the Company multiple distribution channels and the
ability to meet future market demands as technology drives new media and
entertainment industry change.
Offline, GigaMedia operates Taiwan's two largest music store chains, Rose
Records and Tachung Records, through its subsidiary G-Music. Online, the Company
operates a major Taiwanese broadband ISP, providing Internet access service and
broadband content with multiple delivery technologies via its Web destination
http://www.gigigaga.com. GigaMedia also provides broadband services to corporate
subscribers in Taiwan through its subsidiary Koos Broadband Telecom Limited.
Through GigaMedia's subsidiary Grand Virtual, based in Cambridge, Massachusetts,
the Company develops software for online entertainment services, including
online gaming and social networking. Note that GigaMedia began to consolidate
results of Grand Virtual in April 2004 and that management expects to provide
results of Grand Virtual in the Company's second quarter 2004 results. Strategic
investors of GigaMedia include the Koos Group, a major participant in Taiwan's
manufacturing, finance, telecommunications, media, and cable industries. More
information on GigaMedia can be obtained from http://ir.giga.net.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/A
filed with the United States Securities and Exchange Commission in August 2003.
Contact:
GigaMedia Limited
Brad Miller, Investor Relations Director
Country/City Code 8862 Tel: 8770-7966 ext. 1107
brad.miller@gigamedia.com.tw
# # #
(Tables to follow)
===============================================================================
GIGAMEDIA LIMITED
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
Three months ended
3/31/2004 3/31/2003 12/31/2004
--------- ------------------- ----------
USD USD USD
--------- ------------------- ----------
33.38 34.69 33.99
--------- ------------------- ----------
Operating revenues
Access revenues 5,361,538 4,432,050 5,039,954
Sales/Rental/Installation 21,325,007 21,288,283 19,082,819
Advertising revenues 482,932 438,523 468,901
Subscription revenues 66,807 119,681 74,729
ther revenues 18,253 71,363 31,947
---------- ---------- ----------
Total operating revenues 27,254,538 26,349,899 24,698,350
---------- ---------- ----------
Costs and expenses
Operating cost 3,463,853 3,828,752 8,273,318
Cost of sales/rental/installation 18,336,300 19,042,846 16,388,116
Product development & engineering expenses 303,702 311,245 330,775
Selling and marketing expenses 3,914,314 3,727,039 3,611,477
General and administrative expenses 2,477,919 1,459,319 2,508,380
Bad debt expenses 0 8,735 146,064
Impairment loss on goodwill 0 0 746,962
---------- ---------- ----------
Total costs and expenses 28,496,088 28,377,937 32,005,094
---------- ---------- ----------
Gain(Loss) from Operations. (1,241,550) (2,028,037) (7,306,744)
---------- ---------- ----------
Non-operating income (expense)
Interest income 57,049 106,399 101,250
Foreign exchange gain(loss)-net (621,210) (5,563) 61,362
Investment income 708,761 120,602 (1,589,959)
Gain (loss) on disposal of property, plant & equipment (575) (1,113) (772,776)
Interest income (expense) (72) (34,700) (117)
Other non-operating income (expense) 164,774 41,933 (227,585)
Non-operating income (expense) 308,726 227,558 (2,427,825)
Income tax expense 0 0 141,994
Minority interest income (loss) (157,717) (355,089) (1,925,897)
---------- ---------- ----------
Net Income (Loss) (775,107) (1,445,391) (7,950,666)
---------- ---------- ----------
Net loss per common share (0.02) (0.03) (0.16)
---------- ---------- ----------
Average shares outstanding 50,154,000 50,154,000 50,154,000
GIGAMEDIA LIMITED CONSOLIDATED BALANCE SHEET
(Unaudited)
Three months ended
3/31/2004 3/31/2003 12/31/2004
--------- ------------------- ----------
USD USD USD
--------- ------------------- ----------
33.025 34.745 33.97
--------- ------------------- ----------
Assets
Current assets
Cash and cash equivalents 12,422,287 32,773,564 35,293,911
Short-term investments 28,626,613 24,258,629 28,956,284
Accounts receivable 5,421,321 4,333,443 4,093,324
Receivables from related parties 0 0 230,805
Inventories-net 6,163,754 8,840,156 4,803,809
Prepaid expenses 1,272,477 631,740 1,367,646
Restricted cash 1,348,788 1,810,932 1,925,494
Note receivable from officer 172,506 533,429 372,390
Other current assets 1,670,495 2,602,433 665,438
----------- ----------- -----------
Total Current Assets 57,098,240 75,784,326 77,709,102
----------- ----------- -----------
Investment
Total investment 37,180,454 16,767,182 15,259,979
Property, plant & equipment - net 15,210,658 20,405,210 15,636,009
Goodwill 0 730,731 0
Intangible assets - net 6,138,570 6,739,237 6,199,099
Total other assets 4,771,214 4,843,581 4,988,020
----------- ----------- -----------
Total assets 120,399,138 125,270,267 119,792,210
----------- ----------- -----------
Liabilities & shareholders' equity
Short-term loans 0 0 0
Notes and accounts payable 16,082,738 13,275,604 16,787,852
Payable to related parties 0 0 407,215
Accrued compensation 1,081,550 577,564 1,418,214
Accrued expenses 3,704,766 1,518,979 3,255,365
Other current liabilities 3,178,802 1,180,042 2,241,968
----------- ----------- -----------
Total current liabilities 24,047,856 16,552,189 24,110,616
----------- ----------- -----------
Total other liabilities 1,979,445 1,485,801 1,797,598
Total liabilities 26,027,301 18,037,990 25,908,214
Minority interests 3,221,304 6,183,979 3,521,367
Total shareholders' equity 91,150,532 101,048,299 90,362,630
----------- ----------- -----------
Total liabilities and shareholders' equity 120,399,138 125,270,267 119,792,210
----------- ----------- -----------