HONG KONG, Nov. 17, 2010 /PRNewswire-Asia/ -- ACL
Semiconductors (OTC Bulletin Board: ACLO), a leading China-based distributor of Samsung memory
electronic products in Hong Kong
and Southern China, reported
financial results for the quarter ended September 30, 2010.
Quarterly Highlights:
- Net revenue up 35% year-over-year to $102.3 million
- Initiated NAND Flash products to capture larger market
share
- Over 150 customers in Hong
Kong and Southern
China
Mr. Alan Yang, Chairman and Chief
Executive Officer of ACL Semiconductors, commented, "The third
quarter of 2010 demonstrated another quarter of year-over-year
revenue growth. Our total revenue was up 34.6% in the quarter ended
September 30, 2010, as compared to
the same period last year. These outstanding results also reflect
the success of our business model and the macro economic factors
across Hong Kong and Southern China. Most importantly, we are proud
of the distribution and product research we supply to Samsung, as
we are positioned to be a leading distributor of Samsung memory
products in Southern China. During
the quarter, we began to promote Samsung's high density NAND Flash
(4GB and above) in order to capture a larger market share as well
as to push the high density products to the mainstream market. This
promotion was successful, which resulted in our increased sales
volume for the quarter."
For the quarter ended September 30,
2010, ACL Semiconductors reported net revenue of
$102.3 million, an increase from
$76.0 million, or 34.6%, compared to
the same period last year. The year-over-year revenue growth was
primarily due to an increase of sales volume in the PRC market. Net
loss for the quarter ended September 30,
2010 was $77,000, compared to
net income of $1.0 million in the
same period last year. The net loss resulted primarily from
increased pricing pressure on our products and our promotion of
Samsung's NAND products. Earnings per diluted share was
$0.00 for the quarter ended
September 30, 2010, as compared to
$0.03 in the same period last
year.
Gross profit for the quarter ended September 30, 2010 was $950,000, down 60.6% from $2.4 million for the quarter ended September 30, 2009, primarily due to lower
margins resulting from the factors mentioned above. Gross margin
for the quarter ended September 30,
2010 was 0.9%, down from 3.2% as compared to the quarter
ended September 30, 2009. The
decrease in gross profit and gross margin was mainly due to the
decrease in the average selling prices of our products as the
market became saturated with excess supply.
Mr. Yang continued, "During the quarter we continued to pursue
initiatives to improve our internal financial performance and
minimize unnecessary costs. We recorded an 11.2% decrease in
operating expenses as compared to the corresponding quarter in
2009. We expect our sales turnover to remain stable in the fourth
quarter of 2010. We also expect global market demand and the
average selling prices of our products to remain stable in the
fourth quarter 2010. We are confident in our outlook as the
electronics sector is expected to grow for the remainder of the
year and we are well-positioned to take advantage of the
foreseeable growth in China's
market."
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 mobile
phones, digital cameras and laptop computers to MP3 players and
Wi-Fi products. 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.
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Investor Contacts:
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Kun Lin Lee
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Joseph Villalta
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Chief Financial Officer
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The Ruth Group
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ACL Semiconductors Inc.
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+1 646-536-7003
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+1 415-812-8626
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jvillalta@theruthgroup.com
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+852-3666-9939
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klee@atlantic.com.hk
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Media Contact:
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Jason Rando
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The Ruth Group
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+1-646-536-7025
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jrando@theruthgroup.com
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-Financial Tables Attached-
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ACL SEMICONDUCTORS INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of Income
(Unaudited)
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Three Months
Ended
|
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Nine Months
Ended
|
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September
30,
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September
30,
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September
30,
|
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September
30,
|
|
|
|
|
2010
|
|
2009
|
|
2010
|
|
2009
|
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(Unaudited)
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(Restated)
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(Unaudited)
|
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(Restated)
|
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Net sales
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|
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|
|
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Related parties
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$
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128,768
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$
|
67,885
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$
|
3,689,719
|
$
|
543,884
|
|
|
Other
|
|
102,166,288
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75,906,352
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|
287,148,690
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|
213,764,992
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Less discounts to customers
|
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-
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(806)
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-
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(8,244)
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
102,295,056
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|
75,973,431
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|
290,838,409
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214,300,632
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
101,344,423
|
|
73,559,599
|
|
285,129,901
|
|
206,475,372
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
950,633
|
|
2,413,832
|
|
5,708,508
|
|
7,825,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
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Selling
|
|
25,521
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|
42,384
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|
78,909
|
|
100,818
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|
|
General and administrative
|
|
964,455
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|
1,072,334
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|
3,145,044
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|
3,594,524
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|
|
|
|
|
|
|
|
|
|
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|
(Loss) income from
operations
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|
(39,343)
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|
1,299,114
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|
2,484,555
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|
4,129,918
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|
|
|
|
|
|
|
|
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|
|
|
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Other income (expenses)
|
|
|
|
|
|
|
|
|
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Rental income
|
|
30,000
|
|
19,744
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|
90,000
|
|
64,359
|
|
|
Interest expense
|
|
(105,399)
|
|
(87,828)
|
|
(311,268)
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|
(370,638)
|
|
|
Management and service
income
|
|
10,885
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|
7,039
|
|
30,090
|
|
21,219
|
|
|
Net income on cash flow
hedge
|
|
-
|
|
17,724
|
|
15,410
|
|
66,445
|
|
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Interest income
|
|
569
|
|
304
|
|
854
|
|
31,327
|
|
|
(Loss) profit on disposal of fixed
assets
|
|
-
|
|
(2,404)
|
|
(308)
|
|
18,946
|
|
|
Exchange differences
|
|
(5,486)
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|
(13,191)
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|
(20,443)
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|
(17,036)
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Miscellaneous
|
|
5,131
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|
384
|
|
26,609
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13,137
|
|
|
|
|
|
|
|
|
|
|
|
|
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(Loss) income before income taxes
provision
|
|
(103,643)
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|
1,240,886
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2,315,499
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|
3,957,677
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|
|
|
|
|
|
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|
|
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Income taxes (reverse)
provision
|
|
(26,907)
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|
253,954
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357,364
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651,390
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|
|
|
|
|
|
|
|
|
|
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Net (Loss) income
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$
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(76,736)
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$
|
986,932
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$
|
1,958,135
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$
|
3,306,287
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|
|
|
|
|
|
|
|
|
|
|
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Earnings per share - basic and
diluted
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$
|
-
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$
|
0.03
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$
|
0.07
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$
|
0.12
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|
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Weighted average number of shares
-
|
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basic and diluted
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28,729,936
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28,729,936
|
|
28,729,936
|
|
28,729,936
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements.
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ACL SEMICONDUCTORS INC. AND
SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
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LIABILITIES AND
STOCKHOLDERS' EQUITY
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As of
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As of
|
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September
30,
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December
31,
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2010
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2009
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(Unaudited)
|
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(Audited)
|
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Current liabilities:
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|
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Accounts payable
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$
22,188,469
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$
23,838,753
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Accrued expenses
|
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339,888
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527,582
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|
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Lines of credit and loan
facilities
|
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11,534,508
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9,013,813
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Current portion of long-term
debt
|
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313,450
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318,972
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Current portion of capital
lease
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237,937
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318,135
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Income tax payable
|
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808,068
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505,078
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Due to stockholders for converted
pledged collateral
|
112,385
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112,385
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Other current liabilities
|
|
21,121
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|
282,475
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|
|
|
|
|
|
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|
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Total current liabilities
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35,555,826
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34,917,193
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|
|
|
|
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Long-term liabilities
|
|
|
|
|
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Long-term debts, less current
portion
|
2,516,195
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2,747,981
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Capital lease, less current
portion
|
88,138
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146,117
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|
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Deferred tax liabilities
|
|
45,504
|
|
19,468
|
|
|
|
|
|
|
|
|
|
|
|
Total long-term liabilities
|
|
2,649,837
|
|
2,913,566
|
|
|
|
|
|
|
|
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Total Liabilities
|
|
38,205,663
|
|
37,830,759
|
|
|
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|
|
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Stockholders' equity:
|
|
|
|
|
|
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Common stock - $0.001 par value;
50,000,000 shares
|
|
|
|
|
|
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authorized; 28,729,936 issued and
outstanding as of
|
28,730
|
|
28,730
|
|
|
|
September 30, 2010 and December 31,
2009 respectively
|
|
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|
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Additional paid in capital
|
|
3,658,627
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|
3,658,627
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|
|
Retained earnings
|
|
2,912,320
|
|
954,185
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
6,599,677
|
|
4,641,542
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders'
equity
|
44,805,340
|
|
42,472,301
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
ACL SEMICONDUCTORS INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
|
|
|
|
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|
Nine months
ended
|
|
|
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
|
|
|
2010
|
|
2009
|
|
|
|
|
|
|
|
|
(Restated)
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by (used for)
operating activities:
|
|
|
|
|
Net income
|
$
1,958,135
|
|
$
3,306,287
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income
(loss) to net
|
|
|
|
|
|
cash provided by (used for)
operating activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
270,426
|
|
191,352
|
|
|
|
|
Bad debts
|
-
|
|
697,803
|
|
|
|
|
Change in inventory reserve
|
186,877
|
|
(258,718)
|
|
|
|
|
Loss (Gain) on disposal of fixed
assets
|
308
|
|
(18,946)
|
|
|
|
|
Issuance of common stocks to
consultant as
|
|
|
|
|
|
|
|
professional fee under share option
scheme
|
-
|
|
66,000
|
|
|
|
|
|
|
|
|
|
|
|
Changes in assets and
liabilities:
|
|
|
|
|
|
|
(Increase) decrease in
assets
|
|
|
|
|
|
|
|
Accounts receivable – other
|
(5,736,717)
|
|
2,299,947
|
|
|
|
|
Inventories
|
2,527,390
|
|
54,969
|
|
|
|
|
Other current assets
|
146,286
|
|
277,541
|
|
|
|
|
Other assets
|
70,937
|
|
269,002
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase (decrease) in
liabilities
|
|
|
|
|
|
|
|
Accounts payable
|
(1,650,285)
|
|
(3,153,144)
|
|
|
|
|
Accrued expenses
|
(187,694)
|
|
236,763
|
|
|
|
|
Income tax payable
|
302,991
|
|
640,265
|
|
|
|
|
Other current liabilities
|
(261,354)
|
|
1,354,271
|
|
|
|
|
Deferred tax
|
26,036
|
|
11,125
|
|
|
|
|
|
Total adjustments
|
(4,304,799)
|
|
2,668,230
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used
for)
|
|
|
|
|
|
|
|
|
operating activities
|
(2,346,664)
|
|
5,974,517
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
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ACL SEMICONDUCTORS INC. AND
SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited) (CONTINUED)
|
|
|
Cash flows used for investing
activities:
|
|
|
|
|
|
Advanced from Aristo / Mr.
Yang
|
4,486,486
|
|
4,796,698
|
|
|
Advanced to Aristo / Mr.
Yang
|
(5,482,132)
|
|
(6,037,702)
|
|
|
(Increase) decrease of restricted
cash
|
(1,870)
|
|
3,083,251
|
|
|
Investment in restricted marketable
securities
|
-
|
|
500,000
|
|
|
Cash proceeds from sale of fixed
assets
|
81,154
|
|
48,077
|
|
|
Purchases of fixed assets
|
(207,471)
|
|
(961,722)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used for)
investing activities
|
(1,123,833)
|
|
1,428,602
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows provided by (used for)
financing activities:
|
|
|
|
|
|
Net borrowings on lines of credit and
notes payable
|
2,520,696
|
|
(7,557,110)
|
|
|
Borrowing from long-term
debt
|
-
|
|
769,231
|
|
|
Principal payments under long-term
debt
|
(237,308)
|
|
(145,405)
|
|
|
Principal payments under capital lease
obligation
|
(298,850)
|
|
(136,510)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by (used for)
financing activities
|
1,984,538
|
|
(7,069,794)
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and
cash equivalents
|
(1,485,959)
|
|
333,325
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
beginning of period
|
2,001,805
|
|
1,943,463
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents,
end of
period
|
$
515,846
|
|
$
2,276,788
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements.
|
|
|
|
|
|
|
|
|
|
|
SOURCE ACL Semiconductors