HONG KONG, Aug. 14, 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 June 30, 2012.
Mr. Chung-Lun Yang, Chairman and Chief Executive Officer of ACL Semiconductors Inc., commented, "We are continuing to diversify our business through acquisitions in order to better position our company for future quarters. Our shareholders remain our top priority in this transformational period. We are excited about the progress we are making in the acquisition of 100% equity interest in Jussey Investments Limited, the owner of 80% equity interest in USmart Electronic Products Limited. This acquisition will position ACL to more effectively coordinate resources and activities, while achieving efficient implementation of memory chips and solutions across the three 'C' market."
Mr. Yang continued, "Although market conditions continue to be weak and volatile, we remain optimistic about the Company's prospects for the second half of the year. Looking forward, we expect NAND Flash sales to increase as ultrabooks, smartphones and tablets are expected to drive demand. At the same time, we anticipate that revenues generated from the DRAM sales will continue to be impacted by global economic conditions."
Mr. Yang concluded, "Since the Company's Samsung business will be gradually transferred to ATMD, the Company expects its net sales will continue to decrease in the coming quarters. Eventually, the Company anticipates that approximately 90% of Samsung products sales will be transferred to ATMD, and the Company will receive 30% of ATMD's net income or loss based upon its ownership interest in ATMD."
Second Quarter 2012 Results
On April 1, 2012, ATMD, a newly established joint venture between the Company and Tomen Devices, entered into a distribution agreement with Samsung Electronics Hong Kong Co., Ltd. ("Samsung") and began to sell and distribute Samsung's products to the Greater China market, as consented to and approved by Samsung. Since ATMD is a newly established company, there will be a transitional period for account setup on both of its suppliers and customers' systems. Due to this issue, Atlantic, the Company's subsidiary, has extended its distributorship agreement with Samsung to June 30, 2012 to continue providing support for its customers during this transitional period. Atlantic will continue its business with its customers until the transformation is completed. The transformation is expected to be completed by the end of September 2012.
Net revenue for the quarter ended June 30, 2012 was $31.4 million, as compared to revenue of $100.8 million for the same period last year. Second quarter 2012 net sales decreased due to continuation of reduced demand and decreased average selling prices that have impacted many semiconductor companies. Significant reductions in general demand for both DRAM and NAND Flash has occurred. Due to the transitional period related to ATMDas described above, approximately 94% of second quarter 2012 sales of the Samsung products were recorded through the Company instead of ATMD. The decrease in net sales was mainly due to the weak and volatile economic conditions, which caused demand reduction from one of the Company's major customers, which accounted for 70% of the Company's sales.
Gross profit for the first quarter 2012 was $389,800, compared to a gross loss of $1.3 million for the second quarter 2011. Gross margin for the second quarter 2012 was 1.2%, compared to a gross margin loss of 1.3% for the second quarter 2011. Although the weak and volatile global economic condition has caused the Company to record a significant drop in revenue, the Company is capable of maintaining a satisfactory gross profit margin.
Net loss for the quarter ended June 30, 2012 was $1.1 million, compared to a net loss of $2.7 million in the same period last year. The decrease in net loss was achieved by improved operating efficiency. Loss per diluted share was $0.04 for the quarter ended June 30, 2012, compared to loss per diluted share of $0.10 in the same period last year.
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's semiconductor and LCD products through ATMD, a newly established joint venture with Tomen Devices. 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.'s 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.