Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today
announced its financial results for the fiscal quarter ended
December 31, 2014 (the Company’s third quarter of fiscal 2015).
Net sales for the third quarter of fiscal 2015 were $16.2
million, compared to $20.5 million for the corresponding quarter in
fiscal 2014. Net loss for the third quarter of fiscal 2015 was $1.8
million, or $0.59 per share, compared to a net loss of $0.7
million, or $0.22 per share, for the third quarter of fiscal
2014.
Net sales for the nine months ended December 31, 2014 were $61.8
million, an increase of approximately 37% when compared to $45.0
million in the corresponding nine-month period in fiscal 2014. Net
loss for the first nine months of fiscal 2015 was $4.7 million, or
$1.56 per share, compared to a net loss of $7.4 million, or $2.43
per share, for the first nine months of fiscal 2014.
John C.K. Sham, the Company's President and Chief Executive
Officer, said: “As previously disclosed, our efforts remained
concentrated during the third quarter of fiscal 2015 on the sale of
higher-pixel camera modules, which yield higher margins. While the
net effect of these efforts was a decline in unit sales, our
average unit pricing, as well of profitability per sale, improved
from the prior fiscal year.”
Mr. Sham continued, “The trend of declining prices for five and
eight mega-pixel camera modules continued in the third quarter of
2015, with prices decreasing by approximately 30% when compared to
a year ago. The rapid pace at which pricing is declining has offset
most of our cost saving measures resulting in little to no
improvement in the operating results."
Mr. Sham concluded, “Despite disappointing results in the third
quarter of fiscal 2015, we continue to improve our yields and
reduce our overall operating costs. We remain hopeful that as
market conditions stabilize, our efforts will result in a return to
sustainable profitability. In the interim, we are continuing to
rent the unused space in our facilities to further offset our
operating costs as we focus our efforts on developing new products
and pursue new business opportunities. We will provide additional
information regarding new business opportunities if and when these
opportunities materialize into confirmed projects.”
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
December 31,
Nine Months Ended
December 31,
2014 2013 2014 2013
(unaudited) (unaudited) (unaudited)
(unaudited) Net sales $ 16,161 $ 20,511 $ 61,830 $
44,973 Cost of goods sold (16,162 ) (18,579 )
(59,367 ) (41,189 ) Gross profit (loss) (1 ) 1,932 2,463
3,784 Selling, general and administrative expenses (5,592 ) (3,325
) (11,907 ) (9,097 ) Other operating income (expense) -
- - - Operating
income (loss) (5,593 ) (1,393 ) (9,444 ) (5,313 ) Interest income,
net 509 159 292 461 Other income (expense), net 3,123
863 4,446 2,141 Income
(loss) from continuing operations before income taxes (1,961 ) (371
) (4,706 ) (2,711 ) Income tax expenses 149
(133 ) (78 ) (163 ) Income (loss) from continuing
operations (1,812 ) (504 ) (4,784 ) (2,874 ) Income (loss) from
discontinued operations, net of tax - (185 )
- (4,595 ) Net income (loss) (1,812 ) (689 )
(4,784 ) (7,469 ) Net income (loss) attributable to non-controlling
interests 12 18 42
91 Net income (loss) attributable to shareholders $ (1,800 )
$ (671 ) $ (4,742 ) $ (7,378 ) Basic earnings (loss) per
common share $ (0.59 ) $ (0.22 ) $ (1.56 ) $ (2.43 ) Diluted
earnings (loss) per common share $ (0.59 ) $ (0.22 ) $ (1.56 ) $
(2.43 ) Basic weighted average number of shares outstanding
3,042 3,043 3,042
3,041 Diluted weighted average number of shares
outstanding 3,042 3,043 3,042
3,041
GLOBAL-TECH ADVANCED INNOVATIONS INC.
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United
States dollars)
December 31, 2014
March 31,
2014
(unaudited) (audited) ASSETS Current assets:
Cash and cash equivalents $ 14,333 $ 22,820 Time deposits 11,872
11,340 Restricted cash 5,198 4,014 Available-for-sale investments -
1,050 Accounts and bills receivable, net 18,982 21,217 Inventories
9,415 7,163 Prepaid expenses 151 123 Deposits and other assets
4,472 2,476 Amount due from a related party 15
13 Total current assets 64,438 70,216 Interests in
jointly-controlled entities - - Property, plant and equipment, net
25,000 26,317 Land use rights, net 2,849 2,923 Deposits paid for
purchase of property, plant and equipment 119
212 Total assets $ 92,406 $ 99,668
LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities:
Short-term bank loans 4,619 7,280 Accounts payable 10,680 12,520
Bills payable 1,550 - Customer deposits 1,216 1,138 Accrued
salaries, allowances and other employee benefits 3,033 2,981 Other
accrued liabilities 6,062 5,721 Income tax payable 4,302
4,233 Total current liabilities 31,462 33,873
Deferred tax liabilities 5 5 Total
liabilities 31,467 33,878
Shareholders' equity:
Common stock, par value $0.04 per share;
12,500,000 shares authorized; 3,233,814 shares issued as
of December 31 and March 31, 2014
129
129
Additional paid-in capital 85,104 85,104 Statutory reserves 1,340
1,340 Accumulated deficit (31,332 ) (26,590 ) Accumulated other
comprehensive income 10,788 10,855 Less: Treasury stock, at cost,
189,587 shares as of December 31 and March 31, 2014 (4,663 )
(4,663 ) Total Global-Tech Advanced Innovations Inc.
shareholders’ equity 61,366 66,175 Non-controlling interests
(427 ) (385 ) Total equity 60,939
65,790 Total liabilities and shareholders’ equity $ 92,406
$ 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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