GigaMedia Ltd (GIGM) 2011 Q4 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to the GigaMedia Limited fourth quarter and full year 2011 financial results call. At this time all participants are in a listen only mode. I must advise you that this conference is being recorded today Friday 23 March 2012.

女士們、先生們，謝謝大家的支持，歡迎參加 GigaMedia Limited 2011 年第四季和全年財務業績電話會議。此時所有參與者都處於僅聆聽模式。我必須提醒您，本次會議將於今天（2012 年 3 月 23 日星期五）進行錄製。

I would now like to hand the conference over to your first speaker today Mr Brad Miller, Investor Relations Director of GigaMedia. Thank you, please go ahead.

現在，我想將會議交給今天的第一位發言者，GigaMedia 投資者關係總監 Brad Miller 先生。謝謝，請繼續。

Thank you. This is Brad Miller, Investor Relations Director of GigaMedia. Welcome to our conference call to discuss GigaMedia's fourth quarter and full year 2011 financial results. With me today are John Stringer CEO and Dirk Chen CFO. Before we begin I would like to remind you that a number of forward looking statements will be made during the conference call.

謝謝。我是 GigaMedia 投資者關係總監 Brad Miller。歡迎參加我們的電話會議，討論 GigaMedia 2011 年第四季和全年財務表現。今天和我一起的還有執行長約翰·斯金格 (John Stringer) 和財務長 Dirk Chen。在我們開始之前，我想提醒您，電話會議期間將會做出一些前瞻性的陳述。

Forward looking statements are any statements that are not historical facts. These forward looking statements are based on the current expectations of GigaMedia and there can be no assurance that such expectations will prove to be correct. Because forward looking statements involve risks and uncertainties GigaMedia's actual results could differ materially from these statements. Information about factors that could cause and in some cases have caused such differences can be found in GigaMedia's Annual Report on Form 20F, filed with the U.S. Securities and Exchange Commission in June 2011.

前瞻性陳述是任何非歷史事實的陳述。這些前瞻性聲明是基於 GigaMedia 目前的預期，並且不能保證這些預期將被證明是正確的。由於前瞻性陳述涉及風險和不確定性，GigaMedia 的實際結果可能與這些陳述有重大差異。有關可能導致（在某些情況下已經導致）此類差異的因素的信息，請參閱 GigaMedia 向美國提交的 20F 表格年度報告。美國證券交易委員會於2011年6月批准了該法案。

This presentation is being made on 23 March 2012 in Taiwan. The content of this presentation contains time sensitive information. It is accurate only as of the time hereof. If any portion of this presentation is rebroadcast, retransmitted or redistributed at a later date, GigaMedia will not be reviewing or updating the material that is contained therein.

此次演講於 2012 年 3 月 23 日在台灣舉行。本簡報的內容包含時間敏感資訊。它僅在本文撰寫時準確。如果此簡報的任何部分在稍後重新廣播、重新傳輸或重新分發，GigaMedia 將不會審查或更新其中包含的資料。

After today's prepared remarks we will respond to questions we have received by email. On our next call, the Q1 2012 results we will again respond to the questions that investors have emailed to us but we will also be providing investors the option of asking questions live on the call. With that I'd like to turn the call over to our new CEO John Stringer.

在今天的準備好的發言之後，我們將回答透過電子郵件收到的問題。在我們下一次關於 2012 年第一季業績的電話會議上，我們將再次回答投資者透過電子郵件發送給我們的問題，但我們也將為投資者提供在電話會議上現場提問的選項。我想將電話轉給我們的新任執行長約翰‧斯金格 (John Stringer)。

Thanks Brad and good evening and good morning to some of you. Thank you for joining us. As stated in our recent press releases there's a lot going on at GigaMedia. I'd like to outline where we are today and where we're headed. As a reminder I joined GigaMedia 6 January of this year and we immediately began implementing a plan to turn around Giga.

謝謝布拉德，祝大家晚上好、早安。感謝您加入我們。正如我們最近的新聞稿中所述，GigaMedia 正在發生很多事情。我想概述我們目前的狀況以及我們的發展方向。提醒一下，我於今年 1 月 6 日加入 GigaMedia，我們立即開始實施扭轉 Giga 局面的計畫。

I shared with everyone a new quick start 100 day plan to establish new discipline and create a new value for our customers, employees and shareholders. The turnaround plans are based on an explicit decision making framework with very clear objectives, that of managing cash, maintaining the Company's listing on NASDAQ and executing a new vision and strategic growth plan.

我與大家分享了一個新的快速啟動100天計劃，以建立新的紀律並為我們的客戶、員工和股東創造新的價值。扭虧為盈計畫是基於明確的決策框架，其目標非常明確，即管理現金、維持公司在納斯達克的上市地位以及執行新的願景和策略成長計畫。

Changes across Giga have been making and taking immediate and decisive, consistent action against this framework. I'll emphasize here that this process is ongoing and will reach between or beyond 100 or even 300 days. We will be evaluating progress against our objectives within each quarter and taking steps that are needed to drive improvement and achieve objectives.

Giga 的變革一直在針對這個框架採取立即、果斷、一致的行動。我在這裡要強調的是，這個過程是持續的，將持續100天甚至300天以上。我們將根據每季的目標評估進展情況，並採取必要的措施來推動改進和實現目標。

Also previously announced we achieved one of our short term objectives. We have gained compliance with NASDAQ a minimum bid price listing requirement and we did so without executing a reverse [scotch flip]. This was important to our Company (inaudible) our public listing could be a critical vehicle for our going forward.

我們之前也宣布實現了我們的一個短期目標。我們已經符合納斯達克最低出價上市要求，而且我們沒有執行反向 [蘇格蘭翻轉]。這對我們公司來說很重要（聽不清楚），我們的公開上市可能是我們未來發展的關鍵工具。

At the heart of our turnaround plan is managing cash. I don't believe you can run a company if you don't have cash. So this mandate means a number of things. It entails increasing focus on key business sectors, program eliminations for operations falling outside our core business model and cost reductions. Managing cash will allow adjustments, create growth and soon lead into new Giga.

我們的扭虧為盈計畫的核心是現金管理。我不相信如果沒有現金你就能夠經營一家公司。因此，這項任務意味著很多事情。它需要更加關注關鍵業務部門、取消核心業務模式以外的業務計劃並降低成本。管理現金將允許調整、創造成長並很快帶來新的 Giga。

Cost reductions are now a part of our continuous review process with the underpinning being productivity improvement. Let me illustrate what managing cash means to GigaMedia by looking at what we're already done. At the corporate level in February after a lot of discussion we merged our Hong Kong office, Hong Kong Giga and Hong Kong FunTown. This will result in two things. Greatly improved communications among our team members and secondly it'll eliminate the redundancies and result in significant future cost savings and we'll describe that more in detail later.

降低成本現在已成為我們持續審查過程的一部分，其基礎是提高生產力。讓我透過我們已經完成的事情來說明現金管理對 GigaMedia 意味著什麼。經過大量討論後，我們在二月在公司層級合併了香港辦事處、香港 Giga 和香港 FunTown。這將導致兩件事。大大改善了我們團隊成員之間的溝通，其次，它將消除冗餘並帶來顯著的未來成本節約，我們稍後將更詳細地描述這一點。

At Jidi Joy -- Jidi Joy is our Shanghai based mainland China company -- they're now focusing on social and web based games. Their experienced in-house team of developers will launch self-developed and enhanced licensed games this year on open platforms of leading social networks in China. This approach should enable Jidi Joy to grow in 2012 and prepare best for 2013.

極地歡樂（極地歡樂是我們位於中國大陸上海的公司）目前專注於社交和網路遊戲。其經驗豐富的內部開發團隊將於今年在中國領先的社交網路的開放平台上推出自主開發和增強的授權遊戲。這種方法應該能讓 Jidi Joy 在 2012 年成長，並為 2013 年做好最佳準備。

To improve our business in March we implemented a reduction in force, down from 70 head count to about 20, all very specific to SNS or social network systems. This resulted from several joint management reviews of Jidi Joy's business model looking for ways to increase efficiencies and growth.

為了改善我們的業務，我們在三月實施了裁員，從 70 人減少到 20 人左右，所有這些都與 SNS 或社交網路系統有關。這是對 Jidi Joy 業務模式進行多次聯合管理審查的結果，旨在尋找提高效率和成長的方法。

At FunTown, our major games company in Taiwan, focus has been on improving increasing levels of sales and reducing marketing and GNA expenses. We also focused on increasing revenue for employees and eliminating redundancies. Character preparation is ongoing for new game launches in 2012 and we do have plans to increase focus on capabilities in mobile games. We look forward to sharing more on these changes that we're making at the new FunTown plus new games and growth opportunities as we move deeper into 2012.

在台灣的主要遊戲公司 FunTown，我們一直致力於提高銷售水平並降低行銷和 GNA 費用。我們也致力於增加員工收入並消除冗餘。2012 年新遊戲發布的角色準備工作正在進行中，我們確實計劃更加重視手機遊戲的功能。隨著 2012 年的深入，我們期待與大家分享更多關於新 FunTown 所做的改變以及新遊戲和成長機會的資訊。

At IAH in Southeast Asia, headquartered in Singapore, our online games business and management has underperformed. The numbers demand changes so we're evaluating strategic options for this business now. The region holds attractive opportunities and we plan to develop a viable strategy soon and we'll share more with that in early Q2 with you. Everest Gaming, we maintain a minority interest in Everest Gaming. We'll be reviewing the status of this and our options later this year but to date our focus has been on revamping and strengthening our core online games business.

在總部位於新加坡的東南亞 IAH，我們的線上遊戲業務和管理表現不佳。數位要求改變，所以我們現在正在評估這項業務的策略選擇。該地區擁有誘人的機遇，我們計劃很快制定可行的策略，並將在第二季初與您分享更多資訊。Everest Gaming，我們持有 Everest Gaming 的少數股權。我們將在今年稍後審查此事的現狀和我們的選擇，但到目前為止，我們的重點是改造和加強我們的核心線上遊戲業務。

Overall managing cash means creating a new business model for new Giga. One that is viable and scalable. This is a major change from the old model, whose expense to revenue ratio was just out of kilter. In short, new Giga is only a few months old but the change is running deep. We're working together as a team. The business units are meeting together, sharing information, sharing goals and resolving problems together. I do personally believe we have a talented team and we'd love to add to that talent going forward.

總體而言，管理現金意味著為新 Giga 創建新的商業模式。一個可行且可擴展的。這與舊模式相比發生了重大變化，舊模式的費用與收入比率已經失衡。簡而言之，新 Giga 僅問世幾個月，但變化卻十分深刻。我們作為一個團隊共同努力。各業務部門聚在一起開會，分享資訊、分享目標並共同解決問題。我個人確實相信我們擁有一支才華橫溢的團隊，並且我們希望在未來能夠進一步壯大這支隊伍。

Finally let me close by saying that we're fortunate to begin building a new Giga with a strong balance sheet. Strengthening it divestment plans are underway from which we expect to add cash proceeds of approximately $30 million to $40 million related to sales of our interest in nonstrategic, publicly listed game studios. We plan to use this to support the growth of our new Giga and we're also leaving all of our options open for M&A.

最後，我想說，我們很幸運能夠開始打造一個擁有強大資產負債表的新 Giga。我們正在加強其撤資計劃，預計透過出售我們在非策略性上市遊戲工作室的權益，我們將獲得約 3,000 萬至 4,000 萬美元的現金收益。我們計劃利用它來支持我們新 Giga 的成長，並且我們也為併購保留所有的選擇。

So thank you for joining us. I look forward to sharing more information with you and reviewing our progress with you every quarter. Brad?

感謝您加入我們。我期待與您分享更多資訊並每季與您一起回顧我們的進展。布拉德？

Thanks John. Next I'd like to add some details on a few items in our results. Total revenues were $7.4 million in line with our expectations. The primary revenue contributor in the fourth quarter continued to be our online games business FunTown. FunTown's revenues were down 9% quarter over quarter. This was due to the declining contributions from a game called Tales Runner. That decline more than offset growth for casual games and the new MMO game A.V.A. in the fourth quarter. Tales Runner has proven to be popular for several years now for us but we've forecast a continued decline in 2012 due to the age of the game.

謝謝約翰。接下來我想在我們的結果中添加一些有關幾個項目的詳細資訊。總收入為 740 萬美元，符合我們的預期。第四季度的主要收入貢獻者仍然是我們的線上遊戲業務 FunTown。FunTown 的營收季減了 9%。這是由於一款名為 Tales Runner 的遊戲的貢獻下降所致。這一下降幅度超過了休閒遊戲和新 MMO 遊戲 A.V.A. 的成長。在第四季。事實證明，Tales Runner 幾年來一直很受歡迎，但由於遊戲年代較久遠，我們預測 2012 年遊戲將繼續下滑。

Turning to cost, in Q4 operating expenses were about $18.1 million, up significantly quarter over quarter, mainly due to bad debt expenses of $1.4 million and impairment totaling $8.3 million. Excluding the bad debt expenses of any impairments from the fourth quarter operating expenses were approximately $8.4 million, basically flat compared to the previous quarter of 2011.

談到成本，第四季營運費用約為 1,810 萬美元，環比大幅成長，主要原因是 140 萬美元的壞帳費用和總計 830 萬美元的減損支出。扣除任何減損的壞帳費用，第四季營運費用約為 840 萬美元，與 2011 年上季度基本持平。

We also recorded significant non-operating expenses. Consolidated non-operating expenses during the fourth quarter of 2011 were $37.1 million. They included the following. One, an investment loss of $36.3 million related to GigaMedia's interest in Everest Gaming and two, an investment loss of $12.6 million related to IAHGames. Together these investment losses more than offset gains totaling approximately $13 million. These gains mainly consisted of the disposal of T2CN and the sale of certain marketable securities related to our holdings in certain game studios.

我們也記錄了大量非營業支出。2011年第四季的合併非營業支出為3,710萬美元。其中包括以下內容。一是與 GigaMedia 在 Everest Gaming 的權益相關的投資損失 3,630 萬美元，二是與 IAHGames 相關的投資損失 1,260 萬美元。這些投資損失總計約 1,300 萬美元，超過了收益。這些收益主要包括處置 T2CN 以及出售與我們在某些​​遊戲工作室的持股相關的某些有價證券。

Core net loss was $5.5 million for the fourth quarter. This number excludes results from discontinued operations and financial results related to our non-core gambling software business, share based compensation expenses and certain non-cash items. Core net loss was basically steady quarter over quarter.

第四季核心淨虧損為 550 萬美元。此數字不包括已終止經營的業績以及與我們的非核心賭博軟體業務、股權激勵費用和某些非現金項目相關的財務表現。核心淨虧損與上一季相比基本保持穩定。

Finally let me review our cash and our balance sheet. In Q4 our net cash position increased to $97.5 million from $44.4 million. Operating cash outflow in the fourth quarter was approximately $700,000. During the period we reclassified $42.5 million from marketable securities non-current to marketable securities current in line with our previously announced divestment plans related to our investment in games studios and developers.

最後，讓我回顧一下我們的現金和資產負債表。第四季度，我們的淨現金狀況從 4,440 萬美元增加到 9,750 萬美元。第四季經營現金流出約70萬美元。在此期間，我們根據先前宣布的與遊戲工作室和開發商投資相關的撤資計劃，將 4,250 萬美元從非流動有價證券重新分類為流動有價證券。

Fourth quarter cash also increased from the aforementioned sale of part of our interest in games studio developers which totals about $6.3 million in the fourth quarter. A quick overview for you. GigaMedia's primary investment in games studios and developers includes the following. XLGames, this is a Korean based studio founded by Jake Song developing (inaudible). Our interest in XLGames is approximately 15%. JCE, which is a leading developer of sports games and (inaudible) in Korea, our interest is approximately 10%. Gorilla Banana, this is a leading games development studio in Korea, we have an approximately 20% interest in Gorilla Banana. Softstar is a Taiwan based games studio, our interest is about 16%.

第四季的現金也因上述出售我們在遊戲工作室開發商的部分權益而增加，第四季總額約為 630 萬美元。為您快速概覽。GigaMedia 對遊戲工作室和開發商的主要投資包括以下內容。XLGames 是由 Jake Song 創立的韓國工作室，致力於開發（聽不清楚）。我們對 XLGames 的權益約為 15%。JCE 是韓國領先的運動遊戲開發商和（聽不清楚）公司，我們的權益約為 10%。Gorilla Banana，這是韓國領先的遊戲開發工作室，我們擁有 Gorilla Banana 約 20% 的權益。大宇科技是一家台灣遊戲工作室，我們的股份約 16%。

With 2011 behind us, new plans in place and a strong balance sheet we look forward to delivering an improved 2012. We're acting quickly this year to strengthen our performance and create a new Giga. I want to highlight two initiatives already completed this year, as stated in our press release. We merged our Hong Kong offices in February and we implemented a reduction in force at Jidi Joy this March. In the first quarter we will incur expenses related to the merger of the Hong Kong offices. In the second quarter we will incur expenses related to the reduction in force at Jidi Joy.

2011 年已經過去，新的計畫已經制定，資產負債表也十分強勁，我們期待 2012 年能取得更好的成績。今年我們將迅速採取行動，加強業績，打造新的千兆。我想強調我們新聞稿中提到的今年已經完成的兩項舉措。我們於二月合併了香港辦事處，並於三月在極樂世界實施了裁員。第一季我們將產生與香港辦事處合併相關的費用。第二季我們將產生與極地喜悅裁員相關的費用。

Following that we will see significant cost benefits. Looking ahead we are confident in our ability to improve our cost structure. We are well positioned to grow GigaMedia and we have sufficient financial resources to fund our business initiatives. We look forward to updating you on our progress going forward.

隨後我們將看到顯著的成本效益。展望未來，我們對改善成本結構的能力充滿信心。我們已做好充分準備來發展 GigaMedia，並且擁有充足的財務資源來資助我們的業務計劃。我們期待向您通報我們未來的進展。

Now we'd like to move into a question and answer session where we will respond to question we have received by email. Questions are weighted and in some cases combined to avoid repetition. We have organized the questions by topic so here we go with the questions.

現在我們進入問答環節，我們將回答透過電子郵件收到的問題。問題會被加權，在某些情況下會合併以避免重複。我們已經按主題組織了問題，下面我們開始回答這些問題。

First a general and financial question. The question is could you please quantify the cost savings you expect going forward resulting from the merging of the Hong Kong offices and the changes at Jidi Joy and when will this have an impact? John would like to answer the first question.

首先是一個一般性的財務問題。問題是，您能否量化一下您預計未來香港辦事處合併和 Jidi Joy 的變化所帶來的成本節約，以及這將在何時產生影響？約翰想回答第一個問題。

Yes, that'll be easy. It was a long pending action and we took immediate -- made a quick decision in early February. The merging of the Hong Kong office and the forced reduction at Jidi were initial steps to increase the focus and efficiencies. We'll report some of those expenses related to those transactions or those actions for both the first quarter and the second quarter of 2012 but following that we'll start seeing their impact.

是的，那很容易。這是一個長期懸而未決的行動，我們在二月初立即做出了決定。香港辦事處的合併和極地的強制裁員是提高重點和效率的初步措施。我們將在 2012 年第一季和第二季報告與這些交易或行動相關的一些費用，但之後我們將開始看到它們的影響。

The merging of the Hong Kong office by itself will save about $450,000 annually. There will be personnel savings on top of that from both the merging of Hong Kong offices and the force reduction in Jidi Joy. I'll emphasize this is all a part of a process, it's not a one-time event. We'll be implementing more steps in 2012 across GigaMedia in bringing our operating costs in line with our revenues.

單單合併香港辦事處每年就能節省約45萬美元。此外，香港辦事處的合併和極地喜悅的裁員還將帶來人員節省。我要強調的是，這都是一個過程的一部分，而不是一次性事件。2012 年，我們將在 GigaMedia 內部採取更多措施，使營運成本與收入一致。

Thanks John. Next we have a question, could you please provide a breakdown of the fourth quarter net loss and what were the major impairments in the fourth quarter and Dirk has a few comments to add.

謝謝約翰。接下來我們有一個問題，您能否提供第四季度淨虧損的明細以及第四季度的主要損失是什麼？ Dirk 還有一些評論要補充。

Okay thank you Brad. Hi everyone, this is Dirk Chen, the CFO of GigaMedia. I wanted to pick up this question. The net loss in the first quarter total is about $51.3 million. This includes net cash write-outs and expected expenses and that totals about $59.4 million. This was mainly composed of non-cash investment loss of about $36.3 million related to Everest Gaming and a non-cash investment loss of about $12.6 million relates to IAHGames.

好的，謝謝你布拉德。大家好，我是 GigaMedia 的財務長 Dirk Chen。我想回答這個問題。第一季淨虧損總計約5,130萬美元。其中包括淨現金減損和預期費用，總額約 5,940 萬美元。這主要包括與 Everest Gaming 相關的約 3,630 萬美元的非現金投資損失和與 IAHGames 相關的約 1,260 萬美元的非現金投資損失。

This non-cash write-out offset gain recorded in the first quarter of about $13 million, mainly composed of the disposal of T2CN and the debt of part of our interest in [GenStudio]. An additional measure we report is core net loss. Core net loss is includes the items I just mentioned except for bad debt expenses in the fourth quarter of about $1.4 million which relate to IAHGames.

該非現金註銷抵消了第一季記錄的約 1,300 萬美元的收益，主要包括出售 T2CN 和我們在 [GenStudio] 的部分權益債務。我們報告的另一個指標是核心淨虧損。核心淨虧損包括我剛才提到的項目，但第四季度與 IAHGames 相關的約 140 萬美元的壞帳費用除外。

Core net loss increased by about $1.7 million quarter over quarter. The increase reflects the bad debt recorded in the fourth quarter. It's good in the bad debt expenses to compare more on an [April to April] basis. Core net loss was basically flat quarter over quarter.

核心淨虧損季增約 170 萬美元。這一增長反映了第四季度記錄的壞帳。在壞帳費用方面，最好以 [4 月至 4 月] 為基礎進行更多比較。核心淨虧損與上一季基本持平。

Okay thank you Dirk. Now next we have a question about FunTown. Can you share details on the product pipeline for FunTown and I believe John has some comments for that.

好的，謝謝你，德克。接下來我們有一個關於 FunTown 的問題。您能否分享有關 FunTown 產品線的詳細資訊？我相信約翰對此有一些評論。

I do. In November following successful initiatives with our Mahjong for iPad we launched an iPhone version of FunTown's Mahjong. Results were solid. The game was downloaded over 12,000 times by year end and achieving the number one ranking in board games in Taiwan. Our plan with popular Mahjong products is to keep opening up and developing the game for different platforms.

我願意。繼 iPad 版麻將成功推出後，11 月我們又推出了 FunTown 麻將的 iPhone 版本。結果是可靠的。截至年底，該遊戲的下載量已超過 12,000 次，成為台灣棋盤遊戲排名第一的遊戲。我們對流行麻將產品的計劃是繼續開放和開發適用於不同平台的遊戲。

Complementing this we're preparing the launch of two new MMOs this year targeting specific niches in the Taiwan/Hong Kong market where we see opportunity. Details on the games and launch dates will come later this year. We're also are continuing to develop a new SpongeBob SquarePants game. A game designed to appeal to broad demographics and although the game is still under development we're encouraged by the progress to date.

除此之外，我們還準備在今年推出兩款新的 MMO 遊戲，瞄準我們看到機會的台灣/香港市場的特定領域。有關遊戲和發布日期的詳細資訊將於今年稍後公佈。我們還在繼續開發新的海綿寶寶遊戲。該遊戲旨在吸引廣泛的人群，儘管遊戲仍處於開發階段，但我們對迄今為止的進展感到鼓舞。

We hope to share more of these in the near future but we've had good meetings with MTV. You probably saw the announcement that they will be releasing their SpongeBob SquarePants movie in 2014 so we're hitting the market earlier and riding the coattails of MTV's press and advertising we think creates a good backdrop for this game to be launched in.

我們希望在不久的將來分享更多這些內容，但我們與 MTV 的會面非常愉快。您可能已經看到他們將在 2014 年發布海綿寶寶電影的公告，因此我們提前進入市場並藉助 MTV 的新聞和廣告，我們認為這為這款遊戲的推出創造了良好的背景。

Underlying all of this though -- as I outlined in my earlier comment -- we'll be evolving and improving business models. We'll carefully be managing our cash, running all of our games with a more efficient model.

然而，正如我在之前的評論中所概述的那樣，所有這一切的根本原因是我們將不斷發展和改進商業模式。我們將謹慎管理我們的現金，以更有效率的模式運行我們所有的遊戲。

Okay thanks John. Finally we have another question. This question is regarding Everest Gaming. Can you please provide some explanation for the large loss recorded by Everest in the fourth quarter? Dirk would you like to comment on that?

好的，謝謝約翰。最後我們還有一個問題。這個問題與 Everest Gaming 有關。您能否解釋一下 Everest 第四季出現巨額虧損的原因？德克，你想對此發表評論嗎？

Sure. As we know in Q4 last year Everest Gaming recorded a significant loss. On top of that they recorded a large (inaudible) as we've retained a 40% interest in Everest Gaming and so recorded a loss that was equal to 40% of Everest Gaming's total (technical difficulty) loss. The impairment made quarter over quarter (indistinct) and it is actually hiding underlying improvement.

當然。眾所周知，Everest Gaming 去年第四季遭遇了重大虧損。除此之外，他們還記錄了巨額（聽不清楚），因為我們保留了 Everest Gaming 40% 的權益，因此記錄的損失相當於 Everest Gaming 總（技術難度）損失的 40%。季度環比下降（不明顯），實際上掩蓋了潛在的改善。

Net loss for Everest Gaming [twigged] impairment actually improved by about $5.7 million quarter over quarter to about $8.3 million. Finally for this question I want to emphasize that (inaudible) we just reveal you this investment based on Everest Gaming's financial results and will not have an impact on the Company's (technical difficulty).

Everest Gaming [twigged] 減損的淨虧損實際上比上一季改善了約 570 萬美元，達到約 830 萬美元。最後，對於這個問題，我想強調的是，（聽不清楚）我們只是根據 Everest Gaming 的財務表現向您透露這項投資，不會對公司的（技術難度）產生影響。

Thanks Dirk. That's all the questions we have for today. Again for our next quarter, Q1 2012, we'll be doing a live call so we'll be answering both email questions and live questions on the call. For further information about GigaMedia or if you have questions and would like to contact the Company please visit our website www.gigamedia.com. That concludes today's call, thank you again for joining us.

謝謝德克。這就是我們今天要問的所有問題。同樣，在下一季度，即 2012 年第一季度，我們將進行現場電話會議，以便我們在電話會議上回答電子郵件問題和現場問題。有關 GigaMedia 的更多信息，或者如果您有任何疑問並希望聯繫公司，請訪問我們的網站 www.gigamedia.com。今天的電話會議到此結束，再次感謝您的參與。

Ladies and gentlemen that does conclude our call for today. Thank you all for participating, you may all disconnect.

女士們、先生們，我們今天的會議到此結束。感謝大家的參與，大家可以斷開連線。