ACL Semiconductors (OTCBB: ACLO)
Quarterly Highlights:
- Net revenue up 58.4% year over year to $99.01 million
- Net income grew 23% over last year to $1.4 million
- Gross margin at 2.9%
- Diluted earnings per share at $0.05 compared to $0.04 a year
ago
ACL Semiconductors (OTCBB: ACLO), a leading China-based
distributor of Samsung memory electronic products, reported
financial results for the first quarter ended March 31, 2010.
Mr. Alan Yang, Chairman and Chief Executive Officer of ACL
Semiconductors, commented, "These outstanding financial results
reflect the success of our business model and the macro economic
factors across Hong Kong and Southern China. Revenues for the
quarter reflect both increased prices and robust demand for
electronic components. Fundamental to our continuing growth is our
strong relationship with Samsung, which depends on ACL for
continuing research and market intelligence to manage their product
production and allocation.
"Momentum in the electronic sector particularly for memory
products continued into the second quarter as demand for consumer
electronics remained robust. We are also gaining increased
confidence in our outlook as we continue to benefit from the
broader rebound in the semiconductor sector. The electronics
business is expected to grow in the forthcoming year and we are
ready to take advantage of the foreseeable growth in China's
market."
For the first quarter of 2010, ACL Semiconductors reported net
revenue of $99.01 million, up 58.4% over $62.5 million for the
first quarter 2009. The year over year revenue growth was primarily
due to an increase of the average selling prices and continuous
demand in memory products in the PRC market. Net income for the
first quarter ended March 31, 2010 was $1.4 million compared to net
income of $1.2 million for the first quarter of 2009. Earnings per
diluted share was $0.05 for the first quarter 2009, as compared to
$0.04 in the year ago quarter.
Gross profit for the first quarter 2010 was $2.8 million, down
1% from $2.9 million for the first quarter 2009 impacted by
increased cost of sales as the rebound in the electronics market
continued and saturization occurred. Gross margin for the first
quarter of 2010 was 2.9%, down from 4.6% for the first quarter
2009. The decrease in gross margins for the first quarter 2010
compared to the first quarter 2009 is partially due to the increase
in cost of sales when compared to the cost of sales in the
corresponding quarter in 2009. During the first quarter of 2009 we
experienced increased gross profit as a consequence of higher
average selling prices and lower cost of sales as the market
experienced a rebound in increased demand together with reduced
supply.
Mr. Yang continued, "We are proud of the distribution and
product research we continue to supply to Samsung and the role we
play in assuring that Samsung receives up to date information on
macro market trends and specific data regarding the overall memory
product demand and specific product details.
"During the first quarter we took initiatives and reviewed
policy changes to improve internal financial controls. Specific
steps include evaluation of board composition and new procedures to
oversee purchase and disbursements. We expect that these
initiatives will increase the reliance and responsibility of our
financial planning group and the ability to stay in compliance with
SEC regulations."
About ACL Semiconductors ACL
Semiconductors distributes electronic components under the
"Samsung" brand name to the Hong Kong and South China markets. The
memory chips are used from everything from a mobile phone, digital
camera and laptop computer to an MP3 player or Wi-Fi product. For
more information about ACL Semiconductors please visit ACL
Semiconductors' corporate website at
http://www.acl-semicon.com.
Forward-Looking Statements This
information contains forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. In
particular, when used in the preceding discussion, the words
"plan," "confident that," "believe," "scheduled," "expect," or
"intend to," and similar conditional expressions are intended to
identify forward-looking statements within the meaning of the Act
and are subject to the safe harbor created by the Act. Such
statements are subject to certain risks and uncertainties and
actual results could differ materially from those expressed in any
of the forward-looking statements. Such risks and uncertainties
include, but are not limited to, market conditions, the
availability of components and successful production of the
company's products, general acceptance of the company's products
and technologies, competitive factors, timing, and other risks
described in the company's SEC reports and filings.
ACL SEMICONDUCTORS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
Three Months Ended
March 31, March 31,
2010 2009
-----------------------
(Restated)
Net sales
Related parties $ 781,896 $ 316,422
Other 98,229,166 62,190,706
Less discounts to customers -- (6,989)
----------- -----------
99,011,062 62,500,139
Cost of sales 96,184,458 59,642,180
----------- -----------
Gross profit 2,826,604 2,857,959
Operating expenses
Selling 24,802 22,177
General and administrative 1,057,869 1,355,453
----------- -----------
Income from operations 1,743,933 1,480,329
Other income (expenses)
Rental income 30,000 22,308
Interest expense (95,164) (166,892)
Management and service income 8,321 6,538
Net income on cash flow hedge 15,410 20,349
Interest income 93 33,631
Loss on disposal of fixed assets (308) --
Exchange differences (6,203) (9,029)
Miscellaneous 960 7
----------- -----------
Income before income taxes provision 1,697,042 1,387,241
Income taxes provision 256,066 217,949
----------- -----------
Net Income $ 1,440,976 $ 1,169,292
----------- -----------
Earnings per share - basic and diluted $ 0.05 $ 0.04
----------- -----------
Weighted average number of shares - basic and
diluted 28,729,936 28,534,380
----------- -----------
ACL SEMICONDUCTORS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
As of March As of
31, 2010 December 31,
(Unaudited) 2009
------------------------
Current liabilities:
Accounts payable $19,802,763 $ 23,838,753
Accrued expenses 603,583 527,582
Lines of credit and loan facilities 10,230,089 9,013,813
Current portion of long-term debt 318,046 318,972
Current portion of capital lease 328,292 318,135
Income tax payable 732,807 505,078
Due to stockholders for converted pledged
collateral 112,385 112,385
Other current liabilities 297,829 282,475
----------- ------------
Total current liabilities 32,425,794 34,917,193
Long-term liabilities
Long-term debts, less current portion 2,669,597 2,747,981
Capital lease, less current portion 128,556 146,117
Deferred tax liabilities 19,468 19,468
----------- ------------
Total long-term liabilities 2,817,621 2,913,566
----------- ------------
Total Liabilities 35,243,415 37,830,759
----------- ------------
Stockholders' equity:
Common stock - $0.001 par value; 50,000,000
shares authorized; 28,729,936 issued and
outstanding as of March 31, 2010 and December
31, 2009 respectively 28,730 28,730
Additional paid in capital 3,658,627 3,658,627
Retained earnings 2,395,161 954,185
----------- ------------
Total stockholders' equity 6,082,518 4,641,542
----------- ------------
Total Liabilities and Stockholders' equity 41,325,933 42,472,301
----------- ------------
ACL SEMICONDUCTORS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
As of March As of
31, 2010 December 31,
(Unaudited) 2009
------------------------
Current assets:
Cash and cash equivalents $ 3,330,275 $ 2,001,805
Restricted cash 2,088,170 2,086,504
Accounts receivable, net of allowance for
doubtful accounts of $0 for 2010 and 2009 13,492,554 12,434,386
Inventories, net 3,365,179 6,048,116
Other current assets 163,358 274,351
----------- ------------
Total current assets 22,439,536 22,845,162
Property, equipment and improvements, net of
accumulated depreciation and amortization 8,221,617 8,179,765
Other deposits 182,116 213,535
Amount due from Aristo / Mr. Yang 10,482,664 11,233,839
----------- ------------
Total Assets 41,325,933 42,472,301
----------- ------------
Investor Contacts: Kenneth Lee Vice President ACL
Semiconductors, Inc. +1 415-812-8626 Email Contact Joseph Villalta
The Ruth Group +1 646-536-7003 Email Contact Media Contact:
Jason Rando The Ruth Group +1-646-536-7025 Email Contact