Global-Tech Advanced Innovations Reports First Quarter Results for Fiscal 2013

Global-Tech Advanced Innovations Reports First Quarter Results for Fiscal 2013

HONG KONG--(BUSINESS WIRE)-- Global-Tech Advanced Innovations Inc. (NAS: GAI) today announced its net sales and earnings for the quarter ended June 30, 2012 (the Company's first quarter of fiscal 2013).


Net sales for the quarter ended June 30, 2012 were $20.5 million, up approximately 54% when compared to $13.3 million for the corresponding quarter in 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 quarter of fiscal 2012 exclude $11.8 million in sales of home appliances.

Net income for the first quarter of fiscal 2013 was $0.05 million, or $0.02 per share, compared to a net loss of $1.6 million, or $0.51 per share, for the first quarter of fiscal 2012.

John C.K. Sham, President and Chief Executive Officer, said, "Our electronic components business increased 78% in the first quarter of fiscal 2013 over the corresponding period in fiscal 2012, which nearly offset the absence of sales from our discontinued home appliances segment (based on home appliances sales in the corresponding quarter of fiscal 2012). Gross margins for the quarter were adversely impacted by depreciation charges of approximately $320,000 for the facilities which were formerly utilized for the home appliances business. Additionally, in the first quarter of fiscal 2012, the home appliances business absorbed approximately $0.9 million of G&A expenses, which were reflected in the loss from discontinued operations, whereas those expenses in the first quarter of fiscal 2013 were reflected mostly in selling, general and administrative expenses."

Mr. Sham continued, "We are pleased with the continued strength of our CCM business, specifically in domestic markets, and expect further improvements in fiscal 2013. We expect to begin incorporating several new products into our existing product lines in fiscal 2013."

Mr. Sham concluded, "We continue our efforts to develop products for use in certain medical applications which, while not currently generating significant revenues, we remain optimistic will ultimately have a positive impact on our overall business. We are pleased with our successful exit from the home appliance business, which caused no major disruption to our financial position. We are hopeful that we will be able to secure a lessee for the facilities that were previously occupied by our home appliances operations which we anticipate would serve to offset a portion of the Company's fixed costs."

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 June 30,

2012

2011

(unaudited)

(unaudited)

Net sales

$

20,492

$

13,264

Cost of goods sold

(17,450)

(11,884)

Gross profit

3,042

1,380

Selling, general and administrative expenses

(3,452)

(2,652)

Other operating profit

-

34

Operating loss

(410)

(1,238)

Interest income, net

135

52

Other income, net

298

468

Income (Loss) from continuing operations before income taxes

23

(718)

Income tax expenses

-

(31)

Income (Loss) from continuing operations

23

(749)

Income (Loss) from discontinued operations, net of tax

-

(831)

Net income (loss)

23

(1,580)

Net income (loss) attributable to non-controlling interests

26

27

Net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc.

$

49

$

(1,553)

Basic and diluted earnings (loss) per common share

$

0.02

$

(0.51)

Basic and diluted weighted average number of shares of common shares

3,040

3,039

GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Amounts expressed in thousands of United States dollars)

June 30, 2012

March 31, 2012

(unaudited)

(audited)

ASSETS

Current assets:

Cash and cash equivalents

$

30,259

$

39,793

Time deposits

6,294

-

Restricted cash

6,152

4,546

Available-for-sale investments

2,006

2,006

Accounts and bills receivable, net

33,599

30,273

Inventories

6,678

5,374

Prepaid expenses

121

150

Deposits and other assets

558

769

Amount due from a related party

18

12

Total current assets

85,685

82,923

Interests in jointly-controlled entities

-

-

Property, plant and equipment, net

21,235

21,934

Land use rights, net

3,032

3,083

Deposits paid for purchase of property, plant and equipment

329

66

Available for sales investments

1,038

1,034

Total assets

$

111,319

$

109,040

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term bank loans

5,083

4,000

Accounts payable

9,333

8,164

Customer deposits

648

861

Accrued salaries, allowances and other employee benefits

3,431

3,102

Other accrued liabilities

7,175

6,638

Income tax payable

5,934

6,158

Total current liabilities

31,604

28,923

Deferred tax liabilities

27

27

Total liabilities

31,631

28,950

Shareholders' equity:

Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,229,314 shares issued
as of June 30 and March 31, 2012

129

129

Additional paid-in capital

84,795

84,786

Accumulated deficit

(9,642)

(9,691)

Accumulated other comprehensive income

9,263

9,697

Less: Treasury stock, at cost, 189,587 shares as of June 30 and March 31, 2012

(4,663)

(4,663)

Total Global-Tech Advanced Innovations Inc. shareholders' equity

79,882

80,258

Non-controlling interests

(194)

(168)

Total equity

79,688

80,090

Total liabilities and shareholders' equity

$

111,319

$

109,040



Global-Tech Advanced Innovations Inc.
Cecilia Au-Yeung, Hong Kong: 852-2814-6264
investorrelations@global-webpage.com
http://www.businesswire.com/cnn/gai.shtml

KEYWORDS: United States Asia Pacific North America China New York

INDUSTRY KEYWORDS:

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