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

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

HONG KONG--(BUSINESS WIRE)-- Global-Tech Advanced Innovations Inc. (NAS: GAI) today announced its financial results for the quarter ended September 30, 2012 (the Company's second quarter of fiscal 2013).


Net sales for the second quarter of fiscal 2013 were $26.0 million, an increase of approximately 40% when compared to $18.5 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 second quarter of fiscal 2012 exclude $15.2 million in sales of home appliances. Net income for the second quarter of fiscal 2013 was $0.2 million, or $0.07 per share, compared to a net income of $1.2 million, or $0.39 per share, for the second quarter of fiscal 2012.

Net sales for the six months ended September 30, 2012 were $46.5 million, up approximately 46% when compared to $31.8 million in the corresponding six-month period in fiscal 2012. Net income for the first six months of fiscal 2013 was $0.3 million, or $0.08 per share, compared to a net loss of $0.4 million, or $0.13 per share, for the first half of fiscal 2012.

John C.K. Sham, the Company's President and Chief Executive Officer, said: "Our electronic components business increased approximately 49% in the second quarter of fiscal 2013, compared to the same corresponding period in fiscal 2012. The growth of this business in the first half of fiscal 2013 has more than offset the loss in net sales resulting from our exit from the home appliance business during this period."

Mr. Sham continued, "In the first half of fiscal 2013, we incurred costs in excess of $700,000 related to the facilities that formerly housed our home appliance business. We continue to consider and evaluate options to best use these facilities, including the possibility of leasing a portion of the space on a short-term basis."

Mr. Sham concluded, "Following the discontinuation of our home appliance business, our overall business is now mostly focused on the Chinese market. We continue to assess other end uses and applications for our existing technology and operating capabilities to expand our business within the various markets in China, such as the expansion of our EMS business."

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

September 30,

Six Months Ended

September 30,

2012

2011

2012

2011

(unaudited)

(unaudited)

(unaudited)

(unaudited)

Net sales

$

26,040

$

18,541

$

46,532

$

31,805

Cost of goods sold

(22,066)

(15,800)

(39,516)

(27,684)

Gross profit

3,974

2,741

7,016

4,121

Selling, general and administrative expenses

(4,000)

(2,373)

(7,452)

(5,025)

Other operating income (expense)

-

(5)

-

29

Operating income (loss)

(26)

363

(436)

(875)

Interest income, net

210

85

345

137

Other income (expense), net

96

112

394

580

Income (loss) from continuing operations before income taxes

280

560

303

(158)

Income tax expenses

(102)

(102)

(102)

(133)

Income (loss) from continuing operations

178

458

201

(291)

Income (loss) from discontinued operations, net of tax

-

688

-

(143)

Net income (loss)

178

1,146

201

(434)

Net income (loss) attributable to non-controlling interests

25

25

51

52

Net income (loss) attributable to shareholders

$

203

$

1,171

$

252

$

(382)

Basic earnings (loss) per common share

$

0.07

$

0.39

$

0.08

$

(0.13)

Diluted earnings (loss) per common share

$

0.07

$

0.39

$

0.08

$

(0.13)

Basic weighted average number of shares outstanding

3,039

3,039

3,039

3,039

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)

September 30, 2012

March 31, 2012

(unaudited)

(audited)

ASSETS

Current assets:

Cash and cash equivalents

$

33,229

$

39,793

Restricted cash

13,348

4,546

Available-for-sale investments

2,007

2,006

Accounts and bills receivable, net

35,430

30,273

Inventories

3,952

5,374

Prepaid expenses

182

150

Deposits and other assets

236

769

Amount due from a related party

19

12

Total current assets

88,403

82,923

Interests in jointly-controlled entities

-

-

Property, plant and equipment, net

21,237

21,934

Land use rights, net

3,034

3,083

Deposits paid for purchase of property, plant and equipment

125

66

Available for sales investments

1,043

1,034

Total assets

$

113,842

$

109,040

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:

Short-term bank loans

4,530

4,000

Accounts payable

12,652

8,164

Customer deposits

2,738

861

Accrued salaries, allowances and other employee benefits

3,539

3,102

Other accrued liabilities

6,860

6,638

Income tax payable

5,928

6,158

Total current liabilities

36,247

28,923

Deferred tax liabilities

27

27

Total liabilities

36,274

28,950

Shareholders' equity:

Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,230,064 shares issued as of September 30 and March 31, 2012

129

129

Additional paid-in capital

85,030

84,786

Accumulated deficit

(12,479)

(9,691)

Accumulated other comprehensive income

9,771

9,697

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

(4,663)

(4,663)

Total Global-Tech Advanced Innovations Inc. shareholders' equity

77,788

80,258

Non-controlling interests

(220)

(168)

Total equity

77,568

80,090

Total liabilities and shareholders' equity

$

113,842

$

109,040

anImage
anImage



Global-Tech Advanced Innovations Inc.
Cecilia Au-Yeung, 852-2814-6264
investorrelations@global-webpage.com

KEYWORDS: United States Asia Pacific North America New York Hong Kong

INDUSTRY KEYWORDS:

The article Global-Tech Advanced Innovations Reports Second Quarter Results for Fiscal 2013 originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.