GigaMedia (GIGM) Updates Q4 Outlook; Sees Revs of $7.8M
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GigaMedia Limited (Nasdaq: GIGM) has updated its guidance for the company's unaudited fourth-quarter 2011 consolidated financial results.
The following estimates are based on the current business outlook:
Revenues: Held steady quarter-over-quarter at approximately US$7.8 million.
Operating expenses: Remained stable compared to the third quarter of 2011 at approximately US$7.9 million before bad debt expenses; increased approximately 21 percent compared to the previous quarter to approximately US$10.1 million when including fourth-quarter bad debt expenses.
Cash, cash equivalents, restricted cash, and marketable securities-current: Increased sequentially as of December 31, 2011 to approximately US$67.0 million; total short-term borrowings remained stable at approximately US$11.8 million resulting in net cash of approximately US$55.2 million in the fourth quarter, up from approximately US$44.5 million in the third quarter. Fourth-quarter cash included proceeds from the sale of GigaMedia's interest in T2CN and from the initial sales of certain of GigaMedia's Asian studio investments, which totaled approximately US$4.7 million and US$6.3 million, respectively.
Non-cash charges: Estimated to be approximately US$50-US$60 million in the fourth quarter, contributing to a net loss for the period. The company expects to report non-cash impairment charges related to investments made under previous management, primarily consisting of charges to Everest Gaming and certain assets in GigaMedia's Asian online games business.
The following estimates are based on the current business outlook:
Revenues: Held steady quarter-over-quarter at approximately US$7.8 million.
Operating expenses: Remained stable compared to the third quarter of 2011 at approximately US$7.9 million before bad debt expenses; increased approximately 21 percent compared to the previous quarter to approximately US$10.1 million when including fourth-quarter bad debt expenses.
Cash, cash equivalents, restricted cash, and marketable securities-current: Increased sequentially as of December 31, 2011 to approximately US$67.0 million; total short-term borrowings remained stable at approximately US$11.8 million resulting in net cash of approximately US$55.2 million in the fourth quarter, up from approximately US$44.5 million in the third quarter. Fourth-quarter cash included proceeds from the sale of GigaMedia's interest in T2CN and from the initial sales of certain of GigaMedia's Asian studio investments, which totaled approximately US$4.7 million and US$6.3 million, respectively.
Non-cash charges: Estimated to be approximately US$50-US$60 million in the fourth quarter, contributing to a net loss for the period. The company expects to report non-cash impairment charges related to investments made under previous management, primarily consisting of charges to Everest Gaming and certain assets in GigaMedia's Asian online games business.
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