Global-Tech Advanced Innovations Inc. (NASDAQ:GAI - News) today announced its financial results for the fiscal quarter ended December 31, 2011 (the Company’s third quarter of fiscal 2012).
Net sales for the third quarter of fiscal 2012 were $44.2 million, an increase of approximately 81% when compared to $24.4 million for the corresponding quarter in fiscal 2011. Net sales of electronic components and revenues from electronic manufacturing services (EMS) increased approximately 33% and 19%, respectively, compared to the corresponding quarter in fiscal 2011, while sales of home appliances (primarily floor care products) nearly tripled due to the Company’s planned exit from this business segment in the fourth quarter of fiscal 2012 and the related increase in purchase orders from customers seeking to increase their inventory.
Net income for the third quarter of fiscal 2012 was $3.3 million, or $1.09 per share, compared to a net loss of $1.5 million, or $0.48 per share, for the third quarter of fiscal 2011.
Net sales for the nine months ended December 31, 2011 were $103.1 million, up approximately 37% when compared to $75.2 million in the corresponding nine-month period in fiscal 2011. In the first nine months of fiscal 2012, net sales of home appliances, electronic components and EMS revenues increased approximately 60%, 25% and 5%, respectively, compared to the corresponding period in fiscal 2011. Net income for the first nine months of fiscal 2012 was $2.9 million, or $0.97 per share, compared to a net loss of $1.5 million, or $0.51 per share, for the first nine months of fiscal 2011.
John C.K. Sham, the Company's President and Chief Executive Officer, said: “Our third quarter is typically our strongest and we were pleased with the improved financial performance in several areas of our business. Improved results in the third quarter of fiscal 2012 were due in part to sales increases and improved profit margins in the Company’s three business segments, as well as declining commodity prices in the second half of calendar 2011 and the easing of inflationary pressures in China. These factors, while contributing positively to the Company’s third quarter operating results, are likely to change in the near future.”
Mr. Sham continued, “As previously announced, we are nearing completion of our exit from the home appliance business and, with the cooperation from our customers, were able to manufacture additional inventory during the transitional period to ensure a smooth phase out process for both the Company and its customers. As stated above, the increase in purchase orders from customers seeking to increase inventory positively impacted our financial results for this quarter.”
Mr. Sham concluded, “Our assets, particularly our liquid resources, continue to increase and, as of December 31, 2011, on a per share basis, far exceed the current trading price of the Company’s stock. We believe we can use resources previously dedicated to the home appliance segment more effectively by reallocating these resources and the efforts of the Company’s management and employees towards business opportunities that we believe will provide better margins and positive returns on investment.”
Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) and camera modules (CCMs). The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in North America, Europe, and other countries throughout the world.
Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," “should,” "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company’s customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China’s trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts expressed in thousands of United States dollars, except per share data)
Three Months Ended
December 31,
Nine Months Ended
December 31,
2011 2010 2011 2010
(unaudited) (unaudited) (unaudited) (unaudited)
Net sales $ 44,221 $ 24,404 $ 103,122 $ 75,190
Cost of goods sold (36,810 ) (22,054 ) (89,275 ) (66,583 )
Gross profit 7,411 2,350 13,847 8,607
Selling, general and administrative expenses (4,113 ) (3,851 ) (11,612 ) (11,778 )
Other operating income (expense) - 1 29 1,114
Operating income (loss) 3,298 (1,500 ) 2,264 (2,057 )
Interest expense (8 ) (103 ) (141 ) (200 )
Interest income 57 137 315 370
Other income, net 134 97 742 591
Income (loss) from operations before income taxes 3,481 (1,369 ) 3,180 (1,296 )
Provision for income taxes (147 ) (82 ) (280 ) (253 )
Net income (loss) 3,334 (1,451 ) 2,900 (1,549 )
Net income (loss) attributable to non-controlling interests (16 ) - 36 -
Net income (loss) attributable to shareholders $ 3,318 $ (1,451 ) $ 2,936 $ (1,549 )
Basic and diluted earnings (loss) per common share $ 1.09 $ (0.48 ) $ 0.97 $ (0.51 )
Basic and diluted weighted average number of shares outstanding 3,039 3,039 3,039 3,039
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United States dollars)
December 31,
2011
March 31,
2011
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents
$ 35,420 $ 19,205
Time deposits - 1,534
Restricted cash 2,876 19,461
Available-for-sale investments 9,005 7
Accounts and bills receivable, net 36,033 35,632
Inventories 8,615 10,849
Prepaid expenses 138 282
Deposits and other assets 1,196 1,712
Legal claims receivable - 16
Amount due from a related party 20 29
Amount due from a jointly-controlled entity - 14
Total current assets 93,303 88,741
Interests in jointly-controlled entities - -
Property, plant and equipment, net 22,776 25,013
Land use rights, net 3,112 3,061
Deposits paid for purchase of property, plant and equipment 20 112
Available for sales investments 2,998 3,009
Total assets $ 122,209 $ 119,936
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank loans 4,000 12,585
Accounts payable 14,268 10,353
Bills payable 2,233 1,279
Temporary receipts 640 821
Accrued salaries, allowances and other employee benefits 6,122 5,608
Accrual for loss contingencies - 31
Other accrued liabilities 7,686 7,576
Income tax payable 5,350 5,318
Total current liabilities 40,299 43,571
Deferred tax liabilities 28 28
Total liabilities 40,327 43,599
Shareholders' equity:
Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,229,314 shares issued as of December 31 and March 31, 2011
129
129
Additional paid-in capital 84,778 84,752
Accumulated deficit (8,165 ) (11,101 )
Accumulated other comprehensive income 10,013 7,395
Non-controlling interests (210 ) (175 )
Less: Treasury stock, at cost, 189,587 shares as of December 31 and March 31, 2011 (4,663 ) (4,663 )
Total shareholders’ equity 81,882 76,337
Total liabilities and shareholders' equity $ 122,209 $ 119,936
Contact:
Global-Tech Advanced Innovations Inc.
Cecilia Au-Yeung, (852) 2814-0601 (Hong Kong)
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.businesswire.com/cnn/gai.shtml