Global-Tech Advanced Innovations Inc. (NASDAQ: 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; 3,230,814shares issued as of June 30
and March 31, 2013
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-YeungTelephone:
Hong Kong (852) 2814-0601investorrelations@global-webpage.comWeb
Page: http://global-webpage.newshq.businesswire.com
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