Innolux Corporation Announces Unaudited Second Quarter 2013

EBITA Margin 25.3% Record High Since Inception in 2010

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Aug 08, 2013, 04:07 ET

JHUNAN, Aug. 8, 2013 /PRNewswire-FirstCall/ -- Innolux Corporation ("INX", "The Company") (TAIEX: 3481) today announced its second quarter 2013 results. Combined net sales for the second quarter 2013 amounted to NT$ 111,518 million, a decrease of 4.5% over the previous quarter's NT$ 116,775 million due to termination of touch panel lamination business. Without the influence from lamination business termination, the second quarter 2013 revenue increased 8.1% over the previous quarter. Gross profit was NT$ 13,782 million, for a gross margin of 12.4%. Operating profit totaled NT$ 8,067 million with an operating margin of 7.2%. Net profit attributable to the shareholders of the parent company amounted to NT$ 4,071 million. EPS equaled NT$ 0.45.

The company's EBITDA margin reached 25.3% in Q2 attributed to product portfolio management, operating efficiency improvement and inventory management. It is also the historical high since inception in 2010. Net debt to equity came down from 153.2% in the second quarter last year to 93.7% in the second quarter this year -- the lowest level for the past two years. The significant improvement is a demonstration of INX's continued improvement in operating efficiency. Net inventory as of the end of second quarter 2013 was NT$ 44,652 million, slightly down from the previous quarter, and the inventory turnover day was 42 days.

The Company shipped 7,019 thousand square meters of panel in the second quarter 2013, which represents a 9.4% increase quarter-over-quarter. Blended area ASP for TFT-LCD panels averaged US$ 520 per square meter. The Company shipped 37.8 million large-sized units in the second quarter 2013, an increase of 16.5% over 32.4 million units shipped in the first quarter 2013. Combined small and medium-sized revenue for second quarter 2013 amounted to NT$ 24,583 million, a decrease of 20.3% compared against the previous quarter due to termination of touch panel lamination business. The company shipped 115.6 million small and medium-sized units during the second quarter 2013, a decrease of 5.6% over the 107.8 million units shipped in the previous quarter.

In terms of product application, Small & Medium, Mobile PC, Desktop monitor, LCD TV panels accounted for 19%, 16%, 19% and 45% of our net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch and above panels accounted for 24%, 19%, 21%, 15%, and 21% of our net sales, respectively.

INX Unaudited 2Q 2013 Income Statement -- QoQ Comparison
Units: NTD million except per share data	2Q 2013		1Q 2013		QoQ%	2Q 2012
Net Sales	111,518		116,775		-4.5%	112,522
Cost of Goods Sold	97,736	87.6%	107,734	92.3%	-9.3%	114,479	101.7%
Gross Profit (Loss)	13,782	12.4%	9,041	7.7%	52.4%	(1,957)	-1.7%
Operating Expense	5,715	5.1%	5,748	4.9%	-0.6%	5,738	5.1%
Operating Income (Loss)	8,067	7.2%	3,293	2.8%	145.0%	(7,695)	-6.8%
Net Non-operating Income(Exp.)	(3,817)	-3.4%	(1,607)	-1.4%	-	(2,188)	-1.9%
Income before Tax	4,250	3.8%	1,686	1.4%	152.1%	(9,883)	-8.8%
EBITDA (1)	28,241	25.3%	24,130	20.7%	17.0%	14,314	12.7%
Net Income (Loss)	4,069	3.6%	1,683	1.4%	141.8%	(9,567)	-8.5%
Net Income (Loss)-Parent	4,071	3.7%	1,684	1.4%	141.7%	(9,565)	-8.5%
Basic EPS (2)	0.45		0.19			(1.35)
Notes: EBITDA = Operating Income + Depreciation & Amortization Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares Capital Stock (common): NT$91.02 billion All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS). Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership. Inter-company transactions between Innolux Corporation and these companies have been eliminated to avoid double-counting.

INX Unaudited 2Q 2013 Balance Sheet
NT$ million	2013.6.30	2013.3.31	2012.6.30
Cash & Short Term Investment	36,120	40,780	57,639
Inventory	44,652	45,161	61,104
Total Assets	524,678	557,659	636,783
Short Term Debt (1)	88,933	100,413	118,492
Long Term Debt (2)	128,143	142,744	205,647
Shareholders' Equity(3)	193,117	190,269	173,961
Net Debt to Shareholders' Equity	93.7%	106.4%	153.2%

Depreciation & Amortization	20,173	20,837	22,007
Capital Expenditure	4,579	4,454	3,290
Notes: Short term debt = (short-term bank loan + commercial papers + current portion of long term loan + obligations under capital leases) Long term debt = (long-term bank loan + corporate bonds + obligations under capital leases) Capital Stock (common): NT$91.02 billion; Book value per common stock: NT$ 21.22 All figures are unaudited, prepared by Innolux Corporation. Starting 2013, Innolux Corporation prepares financial statements in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS). Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership. Inter-company transactions between Innolux Corporation and these companies have been eliminated to avoid double-counting.

Announcement Contact:

Chen-Hui Lin                                                            Spokesperson
Tel: +886-(0)6-505-3760
Cell: +886-(0)968-960-866
Email: [email protected]

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

SOURCE Innolux Corporation