Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 2.54 0.14%
NASDAQ 4,095.52 9.29 0.23%
Ticker Volume Price Price Delta
STOXX 50 3,155.81 16.55 0.53%
FTSE 100 6,625.25 41.08 0.62%
DAX 9,409.71 91.89 0.99%
Ticker Volume Price Price Delta
NIKKEI 14,516.27 98.74 0.68%
TOPIX 1,173.37 6.78 0.58%
HANG SENG 22,760.24 64.23 0.28%

Global-Tech Advanced Innovations Reports Third Quarter Results for Fiscal 2013; Makes Significant Investment to Expand CCM



  Global-Tech Advanced Innovations Reports Third Quarter Results for Fiscal
  2013; Makes Significant Investment to Expand CCM Business

Business Wire

HONG KONG -- April 08, 2013

Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its
financial results for the fiscal quarter ended December 31, 2012 (the
Company’s third quarter of fiscal 2013).

Net sales for the third quarter of fiscal 2013 were $20.6 million, compared to
$22.3 million for the corresponding quarter in fiscal 2012. Net income for the
third quarter of fiscal 2013 was $0.06 million, or $0.01 per share, compared
to a net income of $3.3 million, or $1.09 per share, for the third quarter of
fiscal 2012, which included $1.7 million in income from discontinued
operations, net of taxes. As a result of the discontinued operation of our
home appliance segment in January 2012, proper accounting treatment requires
that net sales for the third quarter of fiscal 2012 exclude approximately
$21.9 million in sales of home appliances.

Net sales for the nine months ended December 31, 2012 were $67.2 million, up
approximately 24% when compared to $54.2 million in the corresponding
nine-month period in fiscal 2012. Net income for the first nine months of
fiscal 2013 was $0.3 million, or $0.10 per share, compared to a net income of
$2.9 million, or $0.97 per share, for the first nine months of fiscal 2012. As
a result of the discontinued operation of our home appliance segment in
January 2012, proper accounting treatment requires that net sales for the
first nine months of fiscal 2012 exclude approximately $49.0 million in sales
of home appliances.

John C.K. Sham, the Company's President and Chief Executive Officer, said:
“The growth momentum of our CCM business was slowed in the third quarter of
fiscal 2013 by the unanticipated placement of purchase orders by some of our
key customers for lower cost, lower pixel CCMs rather than higher pixel CCMs.
The slowing momentum in our CCM business, together with rapidly rising labor
costs in our electronic manufacturing service (EMS) business, adversely
impacted our financial results for the third quarter of fiscal 2013.”

Mr. Sham continued, “As discussed in prior releases and filings, opportunity
remains for growth of our CCM business. To that end, significant investments
were recently made towards the installation of two chip-on-board (COB)
production lines and a COB sampling line, both of which we anticipate will
expand and enhance our production capacity. A Class 10 clean room has been
constructed to compliment the new COB equipment. Thus far, production yields
utilizing the new equipment during trial production runs have approached
maximum levels. We anticipate that the new equipment will enable the company
to expand further into the higher-pixel CCM markets and target new customers.
We expect that the expansion of our product lines and capacity will result in
our CCM business regaining momentum.”

Mr. Sham concluded, “We have implemented cost reduction measures to reduce the
operating costs of our EMS business and we remain optimistic that these steps
will gradually reverse the decline in profitability of our EMS business.
Through these efforts, as well as the pursuit of other options that might
become available, we remain committed to returning value to our shareholders.”

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 APPLIANCES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts expressed in thousands of United States dollars, except per share data)

 
                                                           
                      Three Months Ended                  Nine Months Ended
                                                       
                      December 31,                        December 31,
                      2012              2011              2012              2011
                      (unaudited)       (unaudited)       (unaudited)       (unaudited)
                                                                             
Net sales             $ 20,632          $ 22,347          $ 67,164          $ 54,152
Cost of goods         (18,154)          (18,063)          (57,670)          (45,747)
sold
Gross profit          2,478             4,284             9,494             8,405
Selling,
general and           (3,750)           (2,690)           (11,202)          (7,715)
administrative
expenses
Other operating
income                -                 -                 -                 29
(expense)
Operating             (1,272)           1,594             (1,708)           719
income (loss)
Interest              163               50                508               187
income, net
Other income          272               137               666               717
(expense), net
Income (loss)
from continuing
operations            (837)             1,781             (534)             1,623
before income
taxes
Income tax            384               (147)             282               (280)
expenses
Income (loss)
from continuing       (453)             1,634             (252)             1,343
operations
Income (loss)
from
discontinued          486               1,700             486               1,557
operations, net
of tax
Net income            33                3,334             234               2,900
(loss)
Net income
(loss)
attributable to       27                (16)              78                36
non-controlling
interests
Net income
(loss)                $ 60              $ 3,318           $ 312             $ 2,936
attributable to
shareholders
                                                                             
Basic earnings
(loss) per            $ 0.01            $ 1.09            $ 0.10            $ 0.97
common share
                                                                             
Diluted
earnings (loss)       $ 0.01            $ 1.09            $ 0.10            $ 0.97
per common
share
                                                                             
Basic weighted
average number        3,040             3,039             3,040             3,039
of shares
outstanding
                                                                             
Diluted
weighted
average number        3,040             3,039             3,040             3,039
of shares
outstanding
                                                                             

                                                 
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United States dollars)
                                                   
                                                  December 31,       March 31,
                                                  2012              
                                                                     2012
                                                  (unaudited)        (audited)
ASSETS
Current assets:
Cash and cash equivalents                         $ 28,016           $ 39,793
Restricted cash                                   12,030             4,546
Available-for-sale investments                    7                  2,006
Accounts and bills receivable, net                34,843             30,273
Inventories                                       5,778              5,374
Prepaid expenses                                  196                150
Deposits and other assets                         5,221              769
Amount due from a related party                   19                 12
Total current assets                              86,110             82,923
Interests in jointly-controlled entities          -                  -
Property, plant and equipment, net                22,488             21,934
Land use rights, net                              3,053              3,083
Deposits paid for purchase of property, plant     1,755              66
and equipment
Available for sales investments                   1,044              1,034
Total assets                                      $ 114,450          $ 109,040
                                                                      
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank loans                             5,249              4,000
Accounts payable                                  9,252              8,164
Customer deposits                                 640                861
Accrued salaries, allowances and other employee   4,376              3,102
benefits
Other accrued liabilities                         11,252             6,638
Income tax payable                                5,353              6,158
Total current liabilities                         36,122             28,923
Deferred tax liabilities                          27                 27
Total liabilities                                 36,149             28,950
Shareholders' equity:                                                 
Common stock, par value $0.04 per share;
12,500,000 shares authorized; 3,230,064 shares    129                129
issued as of December 31 and March 31, 2012
Additional paid-in capital                        85,039             84,786
Accumulated deficit                               (12,420)           (9,691)
Accumulated other comprehensive income            10,462             9,697
Less: Treasury stock, at cost, 189,587 shares     (4,663)            (4,663)
as of December 31 and March 31, 2012
Total Global-Tech Advanced Innovations Inc.       78,547             80,258
shareholders’ equity
Non-controlling interests                         (246)              (168)
Total equity                                      78,301             80,090
Total liabilities and shareholders’ equity        $ 114,450          $ 109,040

Contact:

Global-Tech Advanced Innovations Inc.
Cecilia Au-Yeung, 852-2814-0601
investorrelations@global-webpage.com
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement