Taiwan-based provider of social casino games and related content for the international online gaming industry GigaMedia Ltd. reported today information about its financial results for the quarter and year ended December 31, 2015. Quarterly revenue amounted to $2.4 million, down 11.4% year-on-year. Full-year revenue increased 4.8% year-on-year to $10.3 million.
GigaMedia attributed the decrease in its fourth-quarter revenue to the fact that it was restructuring its cloud computing division during the period in review.
Quarterly gross profit amounted to $1 million, up 1169.1% as compared to operating loss of $94,000 posted for the same period of 2014. The company reported loss from operations totaling $5.5 million compared to loss of $4.3 million posted for the quarter ended December 31, 2014.
During the fourth quarter of 2015, GigaMedia generated net loss of $8.9 million, down 263.8% year-on-year as compared to the amount of $5.4 million reported for the same period a year ago. EBITDA dropped 255.3% to a negative of $8.8 million.
Full-year gross profit totaled $1.4 million, down 29.9% year-on-year. Gross margin dropped from 19.9% in 2014 to 13.3% in 2015. The company reported loss of operations amounting to $17.9 million, down 33.1% from the loss of $13.5 million posted for 2014. Net loss reached $2.6 million compared to net loss of $5.2 million reported for the previous year. EBITDA also improved. EBITDA loss of $2.2 million was generated in 2015 compared to EBITDA loss of $4.2 million for the twelve months ended December 31, 2014.
GigaMedia said that last year, it was its main goal to dispose of underperforming businesses and related investment assets and to focus its attention on its mobile gaming business. The company also noted that the fourth quarter of the year was crucial for it as it completed its restructuring.
Commenting on its plans for 2016, GigaMedia said that it intends to penetrate the female niche and partner with more popular gaming developers so as to launch even more high-quality gaming titles with good monetization. New investment opportunities will also be under the management team’s focus in the months to come, although it is well-aware of the global economic outlook and carefully considers every single investment opportunity.
