AU Optronics Corp. Reports 3Q2010 Financial Results
HSINCHU, Taiwan, Oct. 27 /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 third quarter of 2010(1).
AUO posted consolidated revenue of NT$124,403 million (approximately US$3,989 million)(2), down 3.3% from the previous quarter. Gross profit stood at NT$6,241 million (approximately US$200 million), with the gross margin of 5.0%. Operating profit arrived at NT$232 million (approximately US$7 million), with the operating margin of 0.2%. AUO's net income for the third quarter came in at NT$227 million (approximately US$7 million) after tax. Net Income attributable to equity holders of the parent company was NT$98 million (approximately US$3 million), with basic EPS of NT$0.01 per common share (US$0.004 per ADR).
For the first nine months of 2010, AUO reported consolidated revenues of NT$364,553 million (approximately US$11,688 million), with net income of NT$18,747 million (US$601 million) after tax or basic EPS of NT$2.06 per common share (US$0.66 per ADR).
3Q2010 Result Highlights
AUO reported the following unaudited consolidated highlighted results for the third quarter of 2010:
-- Revenue of NT$124,403 million, down 3.3% quarter-over-quarter -- Net income of NT$227 million -- Basic EPS of NT$0.01 per common share -- Gross margin of 5.0% -- Operating margin of 0.2% -- EBITDA(3) margin of 18.1%
For the third quarter, AUO's large-sized panels exceeded 28.67 million units, down 3.2% quarter-over-quarter but up 7.4% year-over-year. Shipments of small- and medium-sized panels reached around 55.59 million units, up 0.3% quarter-over-quarter but down 14.2% year-over-year. For the first nine months of 2010, AUO's large-sized panels totaled about 85.52 million units and small- and medium-sized panels topped 168 million units.
"In the third quarter of 2010, the panel industry witnessed inventory adjustments by the customers and the lower-than-expected panel prices. However, thanks to the dual strategy for product value optimization and product portfolio adjustments, our average selling price per square meter dropped by merely 6.5% from the previous quarter, " said Mr. Andy Yang, Chief Financial Officer of AUO. "As such, our company is able to remain operating margin positive for this quarter, and continue to sustain comparative advantage in terms of EBITDA margin. On the other hand, we also proactively adjusted our capacity utilization rates, so that our inventory turnover days improved from 43 days last quarter to 40 days at the end of the third quarter."
Looking into the fourth quarter, AUO will continuously adjust its capacity utilization rates based on market demands. We hope to continuously provide high value-added products and innovative R&D and technology. Through these efforts, we hope to enhance our capacity values, strengthen the long-term customer relations, and achieve better synergies in the alliances with customers.
(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 NTD31.19:USD1 based on Federal Reserve Bank of New York, USA as of Sep. 30, 2010. (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 65 inches. AUO generated NT$359.3 billion (US$11.2 billion) in sales revenue* in 2009 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.
* 2009 year end revenue converted at an exchange rate of NTD31.95: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 11th, 2010.
SOURCE AU Optronics Corp.