Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today
announced its financial results for the quarter ended September 30,
2014 (the Company’s second quarter of fiscal 2015).
Net sales for the second quarter of fiscal 2015 were $21.1
million, an increase of approximately 76% when compared to $12.0
million for the corresponding quarter in fiscal 2014. Net loss for
the second quarter of fiscal 2015 was $2.2 million, or $0.74 per
share, compared to a net loss of $5.2 million, or $1.70 per share,
for the second quarter of fiscal 2014.
Net sales for the six months ended September 30, 2014 were $45.7
million, an increase of approximately 87% when compared to $24.5
million in the corresponding six-month period in fiscal 2014. Net
loss for the first six months of fiscal 2015 was $2.5 million, or
$0.83 per share, compared to a net income of $6.7 million, or $2.21
per share, for the first half of fiscal 2014.
John C.K. Sham, the Company's President and Chief Executive
Officer, said: “Sales in our electronic components business
experienced growth in the first half of fiscal 2015, with unit
sales increasing nearly 120% compared to the previous year;
however, concurrent declines in pricing of approximately 30% offset
any potential gains in operating results. This is despite an
improved product mix of higher-pixel units for our CCMs.”
Mr. Sham continued, “Competition in the electronic business
remains high, with new entrants entering the market almost daily.
This coupled with the current instability in the industry will
require us to reconsider any further investment in additional
chip-on-board (COB) production lines.”
Mr. Sham concluded, “The future success of our electronic
components business will depend upon our ability to attract new
customers and drive volume while at the same time improving
margins, whether through the reduction of our manufacturing costs
or through increases in price and innovation.”
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 APPLIANCES INC. AND
SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts expressed in thousands of United
States dollars, except per share data)
Three Months Ended
September 30,
Six Months Ended
September 30,
2014 2013 2014 2013
(unaudited) (unaudited) (unaudited)
(unaudited) Net sales $ 21,062 $ 11,994 $ 45,669 $
24,462 Cost of goods sold (20,340) (11,422)
(43,205) (22,611) Gross profit 722 572 2,464 1,851 Selling,
general and administrative expenses (3,361) (3,142) (6,315) (5,766)
Other operating income (expense) - - -
- Operating income (loss) (2,639) (2,570) (3,851) (3,915) Interest
income, net 85 170 189 302 Other income (expense), net 406
572 1,323 1,400 Income (loss) from continuing
operations before income taxes (2,148) (1,828) (2,339) (2,213)
Income tax expenses (103) (66) (227)
(30) Income (loss) from continuing operations (2,251) (1,894)
(2,566) (2,243) Income (loss) from discontinued operations, net of
tax - (3,320) - (4,537) Net income
(loss) (2,251) (5,214) (2,566) (6,780) Net income (loss)
attributable to non-controlling interests 15 47
30 73 Net income (loss) attributable to shareholders
$ (2,236) $ (5,167) $ (2,536) $ (6,707) Basic earnings
(loss) per common share $ (0.74) $ (1.70) $ (0.83) $ (2.21)
Diluted earnings (loss) per common share $ (0.74) $ (1.70) $ (0.83)
$ (2.21) Basic and diluted weighted average number of shares
outstanding 3,042 3,040 3,042 3,040
GLOBAL-TECH ADVANCED INNOVATIONS INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United
States dollars)
September 30, 2014 Sept 30, 2014
March 31, 2014 (unaudited) (audited)
ASSETS Current assets: Cash and cash equivalents $ 15,732 $
22,820 Time deposits 12,115 11,340 Restricted cash 4,185 4,014
Available-for-sale investments 1,052 1,050 Accounts and bills
receivable, net 24,624 21,217 Inventories 10,464 7,163 Prepaid
expenses 205 123 Deposits and other assets 3,223 2,476 Amount due
from a related party 15 13 Total current assets
71,615 70,216 Interests in jointly-controlled entities - -
Property, plant and equipment, net 25,837 26,317 Land use rights,
net 2,901 2,923 Deposits paid for purchase of property, plant and
equipment 302 212 Available for sales investments - - Total assets
$ 100,655 $ 99,668
LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities: Short-term bank loans 9,054 7,280
Accounts payable 13,256 12,520 Customer deposits 1,135 1,138
Accrued salaries, allowances and other employee benefits 3,126
2,981 Other accrued liabilities 6,161 5,721 Income tax payable
4,460 4,233 Total current liabilities 37,192 33,873
Deferred tax liabilities 5 5 Total liabilities
37,197 33,878
Shareholders' equity:
Common stock, par value $0.04 per share;
12,500,000 shares authorized; 3,233,814 shares issued as
of September 30 and March 31, 2014
129
129
Additional paid-in capital 85,104 85,104 Statutory reserves 1,340
1,340 Accumulated deficit (29,126) (26,590) Accumulated other
comprehensive income 11,089 10,855 Less: Treasury stock, at cost,
189,587 shares as of September 30 and March 31, 2014 (4,663)
(4,663) Total Global-Tech Advanced Innovations Inc.
shareholders’ equity 63,873 66,175 Non-controlling interests
(415) (385) Total equity 63,458 65,790 Total
liabilities and shareholders’ equity $ 100,655 $ 99,668
Global-Tech Advanced Innovations Inc.Cecilia Au-Yeung, (852)
2814-0601 (Hong
Kong)investorrelations@global-webpage.comhttp://global-webpage.newshq.businesswire.com
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