Global-Tech Advanced Innovations Reports First Quarter Results for Fiscal 2014
Global-Tech Advanced Innovations Reports First Quarter Results for Fiscal 2014
HONG KONG--(BUSINESS WIRE)-- Global-Tech Advanced Innovations Inc. (NAS: GAI) today announced its net sales and earnings for the quarter ended June 30, 2013 (the Company's first quarter of fiscal 2014).
Net sales for the quarter ended June 30, 2013 were $14.8 million, compared to net sales of $20.5 million for the corresponding quarter in fiscal 2013. Net loss for the first quarter of fiscal 2014 was $1.5 million, or $0.51 per share, compared to a net income of $0.05 million, or $0.02 per share, for the first quarter of fiscal 2013.
John C.K. Sham, the Company's President and Chief Executive Officer, said: "The Company's first quarter of fiscal 2014 saw a decrease in net sales of electronic components of approximately $5.2 million when compared to the corresponding quarter in fiscal 2013 due primarily to declines in customer production levels. Despite lower sales, we are encouraged by the recent production and shipment of our new 8.0 and 5.0 megapixel CCMs utilizing our newly installed chip-on-board (COB) production lines, which we believe to be crucial to returning the Company to profitability."
Mr. Sham continued, "Rising labor costs, high turnover and decreased productivity continue to have significant adverse effects on our operating results. As these issues are likely to persist, we expect to make significant changes in the operation of our businesses in an effort to offset these factors. Additionally, as previously disclosed, a weakening Chinese economy continues to adversely affect our EMS business segment which relies exclusively on the Chinese domestic market. Accordingly, we are considering strategic alternatives, including the potential leasing of our SMT equipment and the facility that houses and operates such equipment in an effort to generate additional income and to improve our financial performance."
Mr. Sham concluded, "We anticipate that our electronic components business will return to at least prior year performance levels in the second half of fiscal 2014, provided that sales of our newer 8.0 and 5.0 CCMs continue to grow as anticipated. Until such time as this occurs or another business opportunity presents itself, we will continue to rent the excess space in our manufacturing facility to supplement our income."
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 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, | ||||||||
2013 | 2012 | |||||||
(unaudited) | (unaudited) | |||||||
Net sales | $ | 14,799 | $ | 20,492 | ||||
Cost of goods sold | (13,902 | ) | (17,450 | ) | ||||
Gross profit | 897 | 3,042 | ||||||
Selling, general and administrative expenses | (3,483 | ) | (3,452 | ) | ||||
Operating loss | (2,586 | ) | (410 | ) | ||||
Interest income, net | 132 | 135 | ||||||
Other income, net | 852 | 298 | ||||||
Income (Loss) from continuing operations before income taxes | (1,602 | ) | 23 | |||||
Income taxes | 36 | - | ||||||
Net income (loss) | (1,566 | ) | 23 | |||||
Net income attributable to non-controlling interests | 26 | 26 | ||||||
Net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc. | $ | (1,540 | ) | $ | 49 | |||
Basic and diluted earnings (loss) per common share | $ | (0.51 | ) | $ | 0.02 | |||
Basic and diluted weighted average number of shares of common shares | 3,040 | 3,040 | ||||||
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts expressed in thousands of United States dollars) | ||||||||
June 30, 2013 | March 31, 2013 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 20,583 | $ | 32,385 | ||||
Time deposits | 14,610 | - | ||||||
Restricted cash | 7,365 | 14,592 | ||||||
Available-for-sale investments | 17 | 17 | ||||||
Accounts and bills receivable | 16,546 | 19,714 | ||||||
Inventories | 8,149 | 5,392 | ||||||
Prepaid expenses | 219 | 181 | ||||||
Deposits and other assets | 3,449 | 5,044 | ||||||
Amount due from a related party | 13 | 19 | ||||||
Total current assets | 70,951 | 77,344 | ||||||
Interests in jointly-controlled entities | - | - | ||||||
Property, plant and equipment, net | 30,499 | 26,529 | ||||||
Land use rights, net | 3,024 | 3,027 | ||||||
Deposits paid for purchase of property, plant and equipment | 205 | 280 | ||||||
Available for sales investments | 1,046 | 1,045 | ||||||
Total assets | $ | 105,725 | $ | 108,225 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term bank loans | 6,411 | 4,826 | ||||||
Accounts payable | 7,365 | 7,135 | ||||||
Customer deposits | 1,447 | 1,331 | ||||||
Accrued salaries, allowances and other employee benefits | 4,065 | 4,368 | ||||||
Other accrued liabilities | 6,852 | 9,644 | ||||||
Income tax payable | 4,459 | 4,659 | ||||||
Total current liabilities | 30,599 | 31,963 | ||||||
Deferred tax liabilities | 5 | 5 | ||||||
Total liabilities | 30,604 | 31,968 | ||||||
Shareholders' equity: | ||||||||
Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,230,814 | 129 | 129 | ||||||
Additional paid-in capital | 85,062 | 85,053 | ||||||
Statutory reserves | 1,238 | 1,238 | ||||||
Accumulated deficit | (17,473 | ) | (15,933 | ) | ||||
Accumulated other comprehensive income | 11,131 | 10,710 | ||||||
Less: Treasury stock, at cost, 189,587 shares as of June 30 and March 31, 2013 | (4,663 | ) | (4,663 | ) | ||||
Total Global-Tech Advanced Innovations Inc. shareholders' equity | 75,424 | 76,534 | ||||||
Non-controlling interests | (303 | ) | (277 | ) | ||||
Total equity | 75,121 | 76,257 | ||||||
Total liabilities and shareholders' equity | $ | 105,725 | $ | 108,225 | ||||
Global-Tech Advanced Innovations Inc.
Cecilia Au-Yeung
Telephone: Hong Kong (852) 2814-0601
investorrelations@global-webpage.com
Web Page: http://global-webpage.newshq.businesswire.com
KEYWORDS: United States Asia Pacific North America New York Hong Kong
INDUSTRY KEYWORDS:
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