HONG KONG -- (Business Wire)
Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its
net sales and earnings for the quarter ended June 30, 2011 (the
Company’s first quarter of fiscal 2012).
Net sales for the quarter ended June 30, 2011 were $25.1 million,
compared to $25.8 million for the corresponding quarter in fiscal 2011.
Net sales of home appliances (primarily floor care products) declined
approximately 11%, while net sales in electronics components and
electronic manufacturing services (EMS) increased by 5% and 9%,
respectively. Sales in Asia constituted over 50% of the net sales in the
first quarter of fiscal 2012.
Net loss for the first quarter of fiscal 2012 was $1.6 million, or $0.51
per share, compared to a net income of $0.8 million, or $0.26 per share,
for the first quarter of fiscal 2011.
John C.K. Sham, President and Chief Executive Officer, said, “The full
impact of increases in wages and the cost of raw materials, resulting
primarily from inflation in China and the strengthening of the Chinese
currency, adversely impacted our financial results for the first quarter
of fiscal 2012. Our gross profit margin in home appliances continued to
decline and margins in our electronic components and EMS businesses were
also significantly lower than in the prior corresponding fiscal quarter.”
Mr. Sham concluded, “We believe that we need to make some significant
changes in our operations to return to profitability and are prepared to
do what is necessary to improve our business prospects and financial
results.”
Global-Tech Advanced Innovations Inc. is a holding company, owning
subsidiaries that manufacture and market a diversified portfolio of
products and services, such as complementary metal oxide semiconductor
(CMOS) camera modules (CCMs), floor care products, and electronic
manufacturing services (EMS). The primary focus of its subsidiaries is
to develop and market high-quality products and services for the
communications industries within the China market, as well as 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 SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts expressed in thousands of United States dollars except
per share data)
|
|
| |
| | Three Months Ended June 30, |
| | 2011 |
| 2010 |
| | (unaudited) | | (unaudited) |
| |
|
| | | |
|
| | | |
|
|
Net sales
| |
$
|
25,135
| | |
$
|
25,823
| |
|
Cost of goods sold
| |
|
(23,424
|
)
| |
|
(22,671
|
)
|
|
Gross profit
| | |
1,711
| | | |
3,152
| |
|
Selling, general and administrative expenses
| | |
(3,810
|
)
| | |
(4,028
|
)
|
|
Other operating income (loss), net
| |
|
34
|
| |
|
1,139
|
|
|
Operating income
| | |
(2,065
|
)
| | |
263
| |
|
Interest expense
| | |
(116
|
)
| | |
(27
|
)
|
|
Interest income
| | |
163
| | | |
113
| |
|
Other income (expenses), net
| |
|
469
|
| |
|
608
|
|
|
Income (loss) before income taxes
| | |
(1,549
|
)
| | |
957
| |
|
Provision for income taxes
| |
|
(31
|
)
| |
|
(170
|
)
|
|
Net income (loss)
| | |
(1,580
|
)
| | |
787
| |
|
Net loss attributable to non-controlling interests
| |
|
27
|
| |
|
-
|
|
|
Net income (loss)
| |
$
|
(1,553
|
)
| |
$
|
787
|
|
| | | |
|
|
Basic earnings (loss) per common share
| |
$
|
(0.51
|
)
| |
$
|
0.26
|
|
| | | |
|
|
Basic weighted average number of shares outstanding
| |
|
3,039
|
| |
|
3,039
|
|
| | | |
|
Diluted earnings (loss) per common share
| |
$
|
(0.51
|
)
| |
$
|
0.26
|
|
| | | |
|
Diluted weighted average number of shares outstanding
| |
|
3,039
|
| |
|
3,039
|
|
| | | | | | | |
|
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United States dollars)
|
|
|
|
| | June 30, 2011 |
| March 31, 2011 |
| | (unaudited) | | (audited) |
| ASSETS | | | | |
|
Current assets:
| | | | |
|
Cash and cash equivalents
| |
$
|
27,211
| | |
$
|
19,205
| |
|
Time deposits
| | |
-
| | | |
1,534
| |
|
Restricted cash
| | |
16,453
| | | |
19,461
| |
|
Available-for-sale investments
| | |
7
| | | |
7
| |
|
Accounts and bills receivable, net
| | |
29,290
| | | |
35,632
| |
|
Inventories
| | |
11,540
| | | |
10,849
| |
|
Prepaid expenses
| | |
112
| | | |
282
| |
|
Deposits and other assets
| | |
1,623
| | | |
1,712
| |
|
Legal claims receivable
| | |
19
| | | |
16
| |
|
Amount due from a related party
| | |
29
| | | |
29
| |
|
Amount due from a jointly-controlled entity
| |
|
14
|
| |
|
14
|
|
|
Total current assets
| | |
86,298
| | | |
88,741
| |
|
Interests in jointly-controlled entities
| | |
-
| | | |
-
| |
|
Property, plant and equipment, net
| | |
24,840
| | | |
25,013
| |
|
Land use rights, net
| | |
3,081
| | | |
3,061
| |
|
Deposits paid for purchase of property, plant and equipment
| | |
61
| | | |
112
| |
|
Available for sales investments
| |
|
3,006
|
| |
|
3,009
|
|
|
Total assets
| |
$
|
117,286
|
| |
$
|
119,936
|
|
| | | |
|
| LIABILITIES AND SHAREHOLDERS' EQUITY | | | | |
|
Current liabilities:
| | | | |
|
Short-term bank borrowings
| | |
9,052
| | | |
12,585
| |
|
Accounts payable
| | |
11,059
| | | |
10,353
| |
|
Bills payable
| | |
2,685
| | | |
1,279
| |
|
Temporary receipts
| | |
896
| | | |
821
| |
|
Accrued salaries, allowances and other employee benefits
| | |
5,609
| | | |
5,608
| |
|
Accrual for loss contingencies
| | |
1
| | | |
31
| |
|
Other accrued liabilities
| | |
7,360
| | | |
7,576
| |
|
Income tax payable
| |
|
5,101
|
| |
|
5,318
|
|
|
Total current liabilities
| | |
41,763
| | | |
43,571
| |
|
Deferred tax liabilities
| |
|
28
|
| |
|
28
|
|
|
Total liabilities
| |
|
41,791
|
| |
|
43,599
|
|
Shareholders' equity:
|
|
|
|
|
|
Common stock, par value $0.04 per share; 12,500,000 shares
authorized; 3,229,314 shares issued as of June 30 and March 31, 2011
| | |
129
| | | |
129
| |
|
Additional paid-in capital
| | |
84,761
| | | |
84,752
| |
|
Accumulated deficit
| | |
(12,654
|
)
| | |
(11,101
|
)
|
|
Accumulated other comprehensive income
| | |
8,124
| | | |
7,395
| |
|
Non-controlling interests
| | |
(202
|
)
| | |
(175
|
)
|
|
Less: Treasury stock, at cost, 189,587 shares as of June 30 and
March 31, 2011
| |
|
(4,663
|
)
| |
|
(4,663
|
)
|
|
Total shareholders’ equity
| |
|
75,495
|
| |
|
76,337
|
|
|
Total liabilities and shareholders' equity
| |
$
|
116,286
|
| |
$
|
119,936
|
|
Contacts:
Global-Tech Advanced Innovations Inc.
Cecilia Au-Yeung, (852)
2814-6264 (Hong Kong)
investorrelations@global-webpage.com
http://www.businesswire.com/cnn/gai.shtml
Source: Global-Tech Advanced Innovations Inc.
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