HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its financial results for the fiscal quarter ended December 31, 2012 (the Company’s third quarter of fiscal 2013).
Net sales for the third quarter of fiscal 2013 were $20.6 million, compared to $22.3 million for the corresponding quarter in fiscal 2012. Net income for the third quarter of fiscal 2013 was $0.06 million, or $0.01 per share, compared to a net income of $3.3 million, or $1.09 per share, for the third quarter of fiscal 2012, which included $1.7 million in income from discontinued operations, net of taxes. As a result of the discontinued operation of our home appliance segment in January 2012, proper accounting treatment requires that net sales for the third quarter of fiscal 2012 exclude approximately $21.9 million in sales of home appliances.
Net sales for the nine months ended December 31, 2012 were $67.2 million, up approximately 24% when compared to $54.2 million in the corresponding nine-month period in fiscal 2012. Net income for the first nine months of fiscal 2013 was $0.3 million, or $0.10 per share, compared to a net income of $2.9 million, or $0.97 per share, for the first nine months of fiscal 2012. As a result of the discontinued operation of our home appliance segment in January 2012, proper accounting treatment requires that net sales for the first nine months of fiscal 2012 exclude approximately $49.0 million in sales of home appliances.
John C.K. Sham, the Company's President and Chief Executive Officer, said: “The growth momentum of our CCM business was slowed in the third quarter of fiscal 2013 by the unanticipated placement of purchase orders by some of our key customers for lower cost, lower pixel CCMs rather than higher pixel CCMs. The slowing momentum in our CCM business, together with rapidly rising labor costs in our electronic manufacturing service (EMS) business, adversely impacted our financial results for the third quarter of fiscal 2013.”
Mr. Sham continued, “As discussed in prior releases and filings, opportunity remains for growth of our CCM business. To that end, significant investments were recently made towards the installation of two chip-on-board (COB) production lines and a COB sampling line, both of which we anticipate will expand and enhance our production capacity. A Class 10 clean room has been constructed to compliment the new COB equipment. Thus far, production yields utilizing the new equipment during trial production runs have approached maximum levels. We anticipate that the new equipment will enable the company to expand further into the higher-pixel CCM markets and target new customers. We expect that the expansion of our product lines and capacity will result in our CCM business regaining momentum.”
Mr. Sham concluded, “We have implemented cost reduction measures to reduce the operating costs of our EMS business and we remain optimistic that these steps will gradually reverse the decline in profitability of our EMS business. Through these efforts, as well as the pursuit of other options that might become available, we remain committed to returning value to our shareholders.”
Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) and camera modules (CCMs). The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in North America, Europe, and other countries throughout the world.
Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," “should,” "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company’s customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China’s trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.
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GLOBAL-TECH APPLIANCES INC. AND SUBSIDIARIES
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Three Months Ended
December 31, |
Nine Months Ended
December 31, |
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| 2012 | 2011 | 2012 |
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2011 | ||||||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||||||
| Net sales | $ 20,632 | $ 22,347 | $ 67,164 | $ 54,152 | ||||||||||||
| Cost of goods sold | (18,154) | (18,063) | (57,670) | (45,747) | ||||||||||||
| Gross profit | 2,478 | 4,284 | 9,494 | 8,405 | ||||||||||||
| Selling, general and administrative expenses | (3,750) | (2,690) | (11,202) | (7,715) | ||||||||||||
| Other operating income (expense) | - | - | - | 29 | ||||||||||||
| Operating income (loss) | (1,272) | 1,594 | (1,708) | 719 | ||||||||||||
| Interest income, net | 163 | 50 | 508 | 187 | ||||||||||||
| Other income (expense), net | 272 | 137 | 666 | 717 | ||||||||||||
| Income (loss) from continuing operations before income taxes | (837) | 1,781 | (534) | 1,623 | ||||||||||||
| Income tax expenses | 384 | (147) | 282 | (280) | ||||||||||||
| Income (loss) from continuing operations | (453) | 1,634 | (252) | 1,343 | ||||||||||||
| Income (loss) from discontinued operations, net of tax | 486 | 1,700 | 486 | 1,557 | ||||||||||||
| Net income (loss) | 33 | 3,334 | 234 | 2,900 | ||||||||||||
| Net income (loss) attributable to non-controlling interests | 27 | (16) | 78 | 36 | ||||||||||||
| Net income (loss) attributable to shareholders | $ 60 | $ 3,318 | $ 312 | $ 2,936 | ||||||||||||
| Basic earnings (loss) per common share | $ 0.01 | $ 1.09 | $ 0.10 | $ 0.97 | ||||||||||||
| Diluted earnings (loss) per common share | $ 0.01 | $ 1.09 | $ 0.10 | $ 0.97 | ||||||||||||
| Basic weighted average number of shares outstanding | 3,040 | 3,039 | 3,040 | 3,039 | ||||||||||||
| Diluted weighted average number of shares outstanding | 3,040 | 3,039 | 3,040 | 3,039 | ||||||||||||
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GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES |
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December 31, |
March 31, 2012 |
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| (unaudited) | (audited) | |||||
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ASSETS |
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| Current assets: | ||||||
| Cash and cash equivalents | $ 28,016 | $ 39,793 | ||||
| Restricted cash | 12,030 | 4,546 | ||||
| Available-for-sale investments | 7 | 2,006 | ||||
| Accounts and bills receivable, net | 34,843 | 30,273 | ||||
| Inventories | 5,778 | 5,374 | ||||
| Prepaid expenses | 196 | 150 | ||||
| Deposits and other assets | 5,221 | 769 | ||||
| Amount due from a related party | 19 | 12 | ||||
| Total current assets | 86,110 | 82,923 | ||||
| Interests in jointly-controlled entities | - | - | ||||
| Property, plant and equipment, net | 22,488 | 21,934 | ||||
| Land use rights, net | 3,053 | 3,083 | ||||
| Deposits paid for purchase of property, plant and equipment | 1,755 | 66 | ||||
| Available for sales investments | 1,044 | 1,034 | ||||
| Total assets | $ 114,450 | $ 109,040 | ||||
| LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Short-term bank loans | 5,249 | 4,000 | ||||
| Accounts payable | 9,252 | 8,164 | ||||
| Customer deposits | 640 | 861 | ||||
| Accrued salaries, allowances and other employee benefits | 4,376 | 3,102 | ||||
| Other accrued liabilities | 11,252 | 6,638 | ||||
| Income tax payable | 5,353 | 6,158 | ||||
| Total current liabilities | 36,122 | 28,923 | ||||
| Deferred tax liabilities | 27 | 27 | ||||
| Total liabilities | 36,149 | 28,950 | ||||
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Shareholders' equity: |
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| Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,230,064 shares issued as of December 31 and March 31, 2012 |
129 |
129 |
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| Additional paid-in capital | 85,039 | 84,786 | ||||
| Accumulated deficit | (12,420) | (9,691) | ||||
| Accumulated other comprehensive income | 10,462 | 9,697 | ||||
| Less: Treasury stock, at cost, 189,587 shares as of December 31 and March 31, 2012 | (4,663) | (4,663) | ||||
| Total Global-Tech Advanced Innovations Inc. shareholders’ equity | 78,547 | 80,258 | ||||
| Non-controlling interests | (246) | (168) | ||||
| Total equity | 78,301 | 80,090 | ||||
| Total liabilities and shareholders’ equity | $ 114,450 | $ 109,040 | ||||