Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today
announced its financial results for the fiscal quarter ended
December 31, 2011 (the Company’s third quarter of fiscal 2012).
Net sales for the third quarter of fiscal 2012 were $44.2
million, an increase of approximately 81% when compared to $24.4
million for the corresponding quarter in fiscal 2011. Net sales of
electronic components and revenues from electronic manufacturing
services (EMS) increased approximately 33% and 19%, respectively,
compared to the corresponding quarter in fiscal 2011, while sales
of home appliances (primarily floor care products) nearly tripled
due to the Company’s planned exit from this business segment in the
fourth quarter of fiscal 2012 and the related increase in purchase
orders from customers seeking to increase their inventory. Net
income for the third quarter of fiscal 2012 was $3.3 million, or
$1.09 per share, compared to a net loss of $1.5 million, or $0.48
per share, for the third quarter of fiscal 2011.
Net sales for the nine months ended December 31, 2011 were
$103.1 million, up approximately 37% when compared to $75.2 million
in the corresponding nine-month period in fiscal 2011. In the first
nine months of fiscal 2012, net sales of home appliances,
electronic components and EMS revenues increased approximately 60%,
25% and 5%, respectively, compared to the corresponding period in
fiscal 2011. Net income for the first nine months of fiscal 2012
was $2.9 million, or $0.97 per share, compared to a net loss of
$1.5 million, or $0.51 per share, for the first nine months of
fiscal 2011.
John C.K. Sham, the Company's President and Chief Executive
Officer, said: “Our third quarter is typically our strongest and we
were pleased with the improved financial performance in several
areas of our business. Improved results in the third quarter of
fiscal 2012 were due in part to sales increases and improved profit
margins in the Company’s three business segments, as well as
declining commodity prices in the second half of calendar 2011 and
the easing of inflationary pressures in China. These factors, while
contributing positively to the Company’s third quarter operating
results, are likely to change in the near future.”
Mr. Sham continued, “As previously announced, we are nearing
completion of our exit from the home appliance business and, with
the cooperation from our customers, were able to manufacture
additional inventory during the transitional period to ensure a
smooth phase out process for both the Company and its customers. As
stated above, the increase in purchase orders from customers
seeking to increase inventory positively impacted our financial
results for this quarter.”
Mr. Sham concluded, “Our assets, particularly our liquid
resources, continue to increase and, as of December 31, 2011, on a
per share basis, far exceed the current trading price of the
Company’s stock. We believe we can use resources previously
dedicated to the home appliance segment more effectively by
reallocating these resources and the efforts of the Company’s
management and employees towards business opportunities that we
believe will provide better margins and positive returns on
investment.”
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 SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts expressed in thousands of United
States dollars, except per share data)
Three Months EndedDecember
31,
Nine Months EndedDecember
31,
2011 2010 2011 2010
(unaudited) (unaudited) (unaudited)
(unaudited) Net sales $ 44,221 $ 24,404 $ 103,122 $
75,190 Cost of goods sold (36,810 ) (22,054 )
(89,275 ) (66,583 ) Gross profit 7,411 2,350 13,847 8,607
Selling, general and administrative expenses (4,113 ) (3,851 )
(11,612 ) (11,778 ) Other operating income (expense) -
1 29 1,114
Operating income (loss) 3,298 (1,500 ) 2,264 (2,057 ) Interest
expense (8 ) (103 ) (141 ) (200 ) Interest income 57 137 315 370
Other income, net 134 97 742
591 Income (loss) from operations before
income taxes 3,481 (1,369 ) 3,180 (1,296 ) Provision for income
taxes (147 ) (82 ) (280 ) (253 ) Net
income (loss) 3,334 (1,451 ) 2,900 (1,549 ) Net income (loss)
attributable to non-controlling interests (16 ) -
36 - Net income (loss)
attributable to shareholders $ 3,318 $ (1,451 ) $ 2,936
$ (1,549 ) Basic and diluted earnings (loss) per
common share $ 1.09 $ (0.48 ) $ 0.97 $ (0.51 )
Basic and diluted weighted average number of shares outstanding
3,039 3,039 3,039
3,039
GLOBAL-TECH ADVANCED INNOVATIONS INC.
AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United
States dollars)
December 31,2011
March 31,2011
(unaudited) (audited) ASSETS Current
assets:
Cash and cash equivalents
$ 35,420 $ 19,205 Time deposits - 1,534 Restricted cash 2,876
19,461 Available-for-sale investments 9,005 7 Accounts and bills
receivable, net 36,033 35,632 Inventories 8,615 10,849 Prepaid
expenses 138 282 Deposits and other assets 1,196 1,712 Legal claims
receivable - 16 Amount due from a related party 20 29 Amount due
from a jointly-controlled entity - 14
Total current assets 93,303 88,741 Interests in jointly-controlled
entities - - Property, plant and equipment, net 22,776 25,013 Land
use rights, net 3,112 3,061 Deposits paid for purchase of property,
plant and equipment 20 112 Available for sales investments
2,998 3,009 Total assets $ 122,209 $
119,936
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities: Short-term bank loans 4,000 12,585 Accounts
payable 14,268 10,353 Bills payable 2,233 1,279 Temporary receipts
640 821 Accrued salaries, allowances and other employee benefits
6,122 5,608 Accrual for loss contingencies - 31 Other accrued
liabilities 7,686 7,576 Income tax payable 5,350
5,318 Total current liabilities 40,299 43,571
Deferred tax liabilities 28 28 Total
liabilities 40,327 43,599
Shareholders' equity:
Common stock, par value $0.04 per share; 12,500,000 shares
authorized; 3,229,314 shares issued as of December 31 and March 31,
2011
129
129
Additional paid-in capital 84,778 84,752 Accumulated deficit (8,165
) (11,101 ) Accumulated other comprehensive income 10,013 7,395
Non-controlling interests (210 ) (175 ) Less: Treasury stock, at
cost, 189,587 shares as of December 31 and March 31, 2011
(4,663 ) (4,663 ) Total shareholders’ equity 81,882
76,337 Total liabilities and shareholders'
equity $ 122,209 $ 119,936
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