HONG KONG, May 15, 2012 /PRNewswire-Asia/ -- ACL Semiconductors Inc. (ACLO.OB) ("ACL"), a China-based distributor of semiconductor components in Hong Kong and Southern China, reported unaudited financial results for the quarter ended March 31, 2012.
Mr. Chung-Lun Yang, Chairman and Chief Executive Officer of ACL Semiconductors Inc., commented, "We are in the process of transforming our business in 2012 with two acquisitions currently pending. During the next two months, we expect to close the acquisitions that were previously announced for Systematic Semiconductor Limited and USmart Electronic Products Limited. Both are expected to diversify our business with higher margin components. We are confident that these growth drivers will benefit both ACL and our shareholders by ensuring our Company is well positioned in a constantly changing business environment."
Net revenue for the quarter ended March 31, 2012 was $42.4 million, as compared to revenue of $121.0 million for the same period last year. First quarter 2012 net sales decreased due to the reduced demand caused by weak and volatile market conditions, and a strong reluctance on the part of our customers, due to economic concerns, to maintain inventory during the Chinese New Year holiday.
Net loss for the quarter ended March 31, 2012 was $865.7 thousand, compared to net income of $1.4 million in the same period last year. The decrease in net income was caused by the reduced sales and decreased gross profit. Loss per diluted share was $0.03 for the quarter ended March 31, 2012, compared to earnings per diluted share of $0.05 in the same period last year.
Gross profit for the first quarter 2012 was $364.8 thousand, compared to $2.9 million for the first quarter 2011. Gross margin for the first quarter 2012 was 0.9%, compared to 2.4% for the first quarter 2011. The decrease in gross profit and gross margins was mainly due to the reduction in sales volume, as well as tighter profit margins due to the weak market condition.
Mr. Chung-Lun Yang continued, "Volatility in the global markets, combined a strong reluctance from our customers to retain inventory during the Chinese New Year, negatively affected sales in the first quarter. By diversifying our business through acquisitions, we expect that ACL will be better positioned to manage such situations in future quarters."
On April 24, 2012, the Company approved a 20% stock dividend. The dividend will be payable on May 28, 2012 to shareholders of record at the close of business on May 14, 2012. Fractional shares will be paid in cash, which amount will be calculated by multiplying the fractional share interest by the average closing prices for the 10 trading days ending on (and including) May 23, 2012, the third trading day prior to the Payment Date.
On March 9, 2012, ACL Holdings entered into an agreement with Tomen Devices Corporation ("Tomen") to create a joint venture, ATMD (Hong Kong) Limited ("ATMD"), which became effective as of April 1, 2012. ATMD issued $10 million in share capital, with ACL Holdings owning 30% and Tomen owning70%, respectively of ATMD. Upon the consummation of this transaction, ATMD will enter into a distribution agreement with Samsung Electronics Hong Kong Co., Ltd. ("Samsung") and start to sell and distribute Samsung's products to the Greater China market, as consented to and approved by Samsung. Atlantic is expected to discontinue its contractual relationship with Samsung under its distribution agreement. Mr. Yang, the Company's Chief Executive Officer is the Chief Executive Officer of ATMD.
On March 30, 2012, ACL entered into a non-binding memorandum of understanding to acquire Jussey Investments Limited, the majority shareholder of USmart Electronic Products Limited ("USmart"). USmart specializes in the manufacture and distribution of computer peripherals, premium smartphones, high-end tablets, flash storage, communication devices and consumer electronics appliances.
On February 13, 2012, ACL entered into a non-binding memorandum of understanding to acquire Superb Sino Holdings Limited, the holding company of Systematic Semiconductor Limited ("Systematic"), a successful trader and procurement network specialist of memory products. Systematic specializes in memory components with over thirty categories and 350 subcategories in the space.
About ACL Semiconductors Inc.
ACL Semiconductors Inc. is a China-based distributor of semiconductor components in Hong Kong and Southern China. Starting April 1, 2012, ACL is distributing Samsung semiconductor products through ATMD, a newly established joint venture with Tomen Devices. ACL has announced two pending acquisitions that will drive ACL's product diversification to higher margin electronic components products. Semiconductor products are used in everything from mobile phones, digital cameras and laptop computers to MP3 players and Wi-Fi products. For more information about ACL Semiconductors Inc. please visit ACL Semiconductors Inc.' corporate website at http://www.acl-semicon.com.
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, the process of the new joint venture with Tomen, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings.
SOURCE ACL Semiconductors Inc.