Innolux Corporation Announces Unaudited 2016 Third Quarter

Net Income NT$ 3.06 Billion

News provided by

Oct 28, 2016, 04:50 ET

JHUNAN, Taiwan, Oct. 28, 2016 /PRNewswire-FirstCall/ -- Innolux Corporation ("INX", "The Company") (TAIEX: 3481) today announced its 3Q 2016 consolidated revenues. Combined net sales for 3Q 2016 amounted to NT$ 74.5 billion, gross profit was NT$ 8.77 billion, for a gross margin of 11.8%. Operating profit totaled NT$ 3.86 billion with an operating profit of 5.2%. Net profit amounted to NT$ 3.06 billion, for a net profit margin of 4.1%. EBITDA margin of 18.4%, with a basic EPS of NT$ 0.31.

In finance, the company's total debt came down to NT$ 59.6 billion, an increase of NT$ 2.55 billion over the previous quarter. Net debt to equity ratio of 13%. The inventory turnover day was 35 days.

The Company shipped 6.97 million square meters of panel in the third quarter 2016, a decrease of 0.5% over the previous quarter. Blended area ASP for TFT-LCD panels averaged US$ 330 per square meter. Small and medium-sized panel revenue amounted to NT$ 15.2 billion in the third quarter 2016, an increase of 16% over the previous quarter. The company shipped 542.1 thousand square meter area of small and medium-sized during the third quarter 2016, an increase of 14.7% over the previous quarter.

In terms of product application, Mobile & CP, Mobile PC, Desktop, TV panels accounted for 24%, 17%, 12% and 47% of our net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 40-inch-and -above panels accounted for 21%, 21%, 18%, and 39% of our net sales, respectively.

Table 1: Statements of Comprehensive Income
Units: NTD million except per share data	3Q 2016		2Q 2016		QoQ%	3Q 2015
Net Sales	74,485	100.0%	66,805	100.0%	11.5%	88,756	100.0%
Cost of Goods Sold	65,713	88.2%	65,251	97.7%	0.7%	77,981	87.9%
Gross Profit (Loss)	8,772	11.8%	1,554	2.3%	464.5%	10,776	12.1%
Operating Expense	4,912	6.6%	4,592	6.9%	7.0%	6,069	6.8%
Operating Income (Loss)	3,859	5.2%	(3,039)	-4.5%	-	4,706	5.3%
Net Non-operating Income (Exp.)	(323)	-0.4%	168	0.3%	-	(625)	-0.7%
Income before Tax	3,536	4.7%	(2,871)	-4.3%	-	4,081	4.6%
EBITDA⁽³⁾	13,714	18.4%	7,408	11.1%	85.1%	17,846	20.1%
Net Income (Loss)	3,058	4.1%	(3,476)	-5.2%	-	3,482	3.9%
Net Income (Loss)-Parent	3,058	4.1%	(3,476)	-5.2%	-	3,482	3.9%
Basic EPS ⁽¹⁾⁽²⁾	0.31		(0.35)			0.35

Notes:
(1) Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
(2) Capital Stock (common): NT$99.5 billion as of September 30,2016
(3) EBITDA = Operation Income + Depreciation & Amortization
(4) All figures are unaudited, prepared by INX in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
(5) INX combined figures presented refer to results from other TFT-LCD related subsidiaries in which INX has 50% or more ownership. Inter-company transactions between INX and these companies have been eliminated to avoid double-counting.

Table 2: Combined Balance Sheet Highlights
NT$ million	2016.9.30	2016.6.30	2015.9.30
Cash & Short Term Investment	32,480	39,599	41,188
Inventory	24,338	25,395	35,008
Total Assets	354,911	349,288	396,067
Short Term Debt ⁽¹⁾	32,352	21,612	16,352
Long Term Debt ⁽²⁾	27,282	35,468	43,606
Shareholders' Equity⁽³⁾	215,345	214,685	241,125
Net Debt to Shareholders' Equity	13%	8%	8%

Depreciation & Amortization	9,855	10,446	13,140
Capital Expenditure	20,440	6,858	4,257

Notes
(1) Short term debt = (short-term bank loan + commercial papers + current portion of long term loan + obligations under capital leases)
(2) Long term debt = (long-term bank loan + corporate bonds + obligations under capital leases)
(3) Capital Stock (common): NT$99.5 billion; Book value per common stock: NT$ 21.64 as of September 30,2016
(4) All figures are unaudited, prepared by INX in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS).
(5) INX combined figures presented refer to results from other TFT-LCD related subsidiaries in which INX has 50% or more ownership. Inter-company transactions between INX and these companies have been eliminated to avoid double-counting.

Announcement Contact:

Jyh-Chau Wang	Anita Chien
Spokesperson	Media Contact
Tel: +886-(0)6-505-3760	Tel: +886-(0)6-505-1888 ext.47153
Email: [email protected]	Cell: +886-(0)911-572-225
	Email: [email protected]