2014

AU Optronics Corp. Reports 2Q2011 Financial Results

HSINCHU, Taiwan, July 27, 2011 /PRNewswire-Asia-FirstCall/ --

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investors conference and announced its unaudited results for the second quarter of 2011(1).

AUO posted consolidated revenue of NT$98,050 million (US$3,406 million)(2), up 5.2% from the previous quarter. Gross profit was at -NT$2,482 million (-US$86 million), with the gross margin of -2.5%. Operating loss was at NT$9,120 million (US$317 million), with the operating margin of -9.3%. AUO's net loss for the second quarter was at NT$10,766 million (US$374 million). Net loss attributable to equity holders of the parent company was NT$10,801 million (US$375 million), with basic EPS of -NT$1.22 per common share (-US$0.42 per ADR).

2Q2011 Result Highlights

AUO's unaudited consolidated results for the second quarter of 2011 were highlighted as below:

  • Revenue of NT$98,050 million, up 5.2% quarter-over-quarter
  • Net loss of NT$10,766 million
  • Basic EPS of -NT$1.22 per common share
  • Gross margin of -2.5%
  • Operating margin of -9.3%
  • EBITDA(3) margin of 13.6%

In the second quarter of 2011, shipments for AUO's large-sized panels exceeded 29.6 million units, up 4.3% quarter-over-quarter, and shipments of small and medium-sized panels reached around 45.5 million units, up 4.6% quarter-over-quarter.

"In the second quarter of 2011, owing to macro uncertainties and customers' inventory adjustments, which impacted the order momentum, AUO's revenue growth and panel pricing trend were weaker than expected. Consequently, our second quarter revenue grew at merely 5.2% quarter-over-quarter. However, our management team has timely adjusted our capacity allocation and prioritized orders with higher profitability. As a result, our EBITDA margin improved to 13.6% and our net debt-to-equity ratio remained stable at 44.9% in the second quarter," said Mr. Andy Yang, Chief Financial Officer of AUO.

Looking into the third quarter of 2011, with ongoing macroeconomic concerns, AUO will strictly control its inventory level and revise down its annual capital expenditures. Despite the capital expenditure cut, AUO will maintain its investments in advanced technology and higher-value products, in order to achieve higher asset turnover ratios and to enhance the Company's long-term competitiveness. Meanwhile, AUO will focus on the profitability and continue to optimize its product portfolios, including the development of 3D technologies applying on TV and notebook products and other high value-added products, such as tablet PCs, smartphones, and high-end car displays, aiming that the increasing portion of the high value products would gradually create positive impacts on the Company's operations.

(1) All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan ("ROC GAAP")

(2) Amounts converted by an exchange rate of NTD28.79:USD1 based on Federal Reserve Bank of New York, USA as of June 30, 2011.

(3) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.



ABOUT AU OPTRONICS

AU Optronics Corp. (AUO) is a global leader of thin film transistor liquid crystal display panels (TFT-LCD). AUO is able to provide customers with a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.2 inches to greater than 71 inches. AUO generated NT$467.2 billion in sales revenue in 2010 (US$16 billion) with global operations in Taiwan, Mainland China, Japan, Singapore, South Korea, the U.S., and Europe. Additionally, AUO is the first pure TFT-LCD manufacturer to be successfully listed at the New York Stock Exchange (NYSE). AUO extended its market to the green energy industry in late 2008. The Display and Solar businesses were established respectively as the Company's two core businesses in October, 2010. For more information, please visit AUO.com.

* 2010 year end revenue converted at an exchange rate of NTD29.14:USD1.

Safe Harbour Notice

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), a global leader of TFT-LCD panels, today announced the above news. Except for statements in respect of historical matters, the statements contained in this Release are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements were based on our management's expectations, projections and beliefs at the time regarding matters including, among other things, future revenues and costs, financial performance, technology changes, capacity, utilization rates, yields, process and geographical diversification, future expansion plans and business strategy. Such forward looking statements are subject to a number of known and unknown risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements, including risks related to the flat panel display industry, the TFT-LCD market, acceptance of and demand for our products, technological and development risks, competitive factors, and other risks described in the section entitled "Risk Factors" in our Form 20-F filed with the United States Securities and Exchange Commission on May 3rd, 2011.

SOURCE AU Optronics Corp.



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