Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its net sales and earnings for the quarter ended June 30, 2014 (the Company’s first quarter of fiscal 2015).
Net sales for the first quarter of fiscal 2015 ended June 30, 2014 were $24.6 million, compared to net sales of $12.5 million from continuing operations for the corresponding quarter in fiscal 2014. Net sales, as presented for the comparable quarter in fiscal 2014, exclude sales from our EMS business, which was discontinued in December 2013. Net loss for the first quarter of fiscal 2015 was $0.3 million, or $0.10 per share, compared to a net loss of $1.5 million, or $0.51 per share, for the first quarter of fiscal 2014.
John C.K. Sham, the Company's President and Chief Executive Officer, said: “Despite an 82% increase in shipments of our CCM units and an overall increase of 104% in net sales in the electronic components segment, profitability in this segment declined about $0.4 million when compared to the prior year. This decline in profitability is primarily attributable to pricing concessions necessitated by the intense competition within the industry, as well as continuing increases in labor and overhead costs.”
Mr. Sham continued, “While we are continuing our efforts towards increasing productivity, the key to improving our operating results remains improving our product mix, specifically the increased sales, as a percentage of overall sales, of higher-pixel CCM units which only represented approximately 18% of our unit volume in the first quarter of fiscal 2015. Operating results for the first quarter of fiscal 2015 benefited from the leasing of the facilities that previously housed our discontinued home appliance and EMS businesses, which generated approximately $1.0 million in gross income and $0.3 million in income after depreciation, taxes and common charges.”
Mr. Sham concluded, “Our primary business focus remains the improvement of profit margins of our electronic components business segment and we are evaluating whether capital improvements and/or other strategic actions can adequately address current operating issues. In the interim, our cash position remains strong and is expected to gradually improve as our rental income increases.”
Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market electronic components and other related products, such as complementary metal oxide semiconductor (CMOS) 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, | ||||||||
2014 | 2013 | |||||||
(unaudited) | (unaudited) | |||||||
Net sales | $ | 24,607 | $ | 12,468 | ||||
Cost of goods sold | (22,865 | ) | (11,188 | ) | ||||
Gross profit | 1,742 | 1,280 | ||||||
Selling, general and administrative expenses | (2,955 | ) | (2,625 | ) | ||||
Operating loss | (1,213 | ) | (1,345 | ) | ||||
Interest income, net | 104 | 132 | ||||||
Other income, net | 917 | 828 | ||||||
Loss from continuing operations before income taxes | (192 | ) | (385 | ) | ||||
Income tax benefit (expenses) | (124 | ) | 36 | |||||
Loss from continuing operations, net of tax | (316 | ) | (349 | ) | ||||
Loss from discontinuing operations, net of tax | - | (1,217 | ) | |||||
Net loss | (316 | ) | (1,566 | ) | ||||
Net loss attributable to non-controlling interests | 15 | 26 | ||||||
Net loss attributable to shareholders of Global-Tech Advanced Innovations Inc. | $ | (301 | ) | $ | (1,540 | ) | ||
Basic and diluted loss per common share | $ | (0.10 | ) | $ | (0.51 | ) | ||
Basic and diluted weighted average number of shares of common shares | 3,042 | 3,040 | ||||||
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(Amounts expressed in thousands of United States dollars) | ||||||||
June 30, 2014 | March 31, 2014 | |||||||
(unaudited) | (audited) | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 17,035 | $ | 22,820 | ||||
Time deposits | 11,332 | 11,340 | ||||||
Restricted cash | 5,589 | 4,014 | ||||||
Available-for-sale investments | 1,051 | 1,050 | ||||||
Accounts and bills receivable, net | 28,454 | 21,217 | ||||||
Inventories | 12,782 | 7,163 | ||||||
Prepaid expenses | 118 | 123 | ||||||
Deposits and other assets | 2,246 | 2,476 | ||||||
Amount due from a related party | 15 | 13 | ||||||
Total current assets | 78,622 | 70,216 | ||||||
Interests in jointly-controlled entities | - | - | ||||||
Property, plant and equipment, net | 26,002 | 26,317 | ||||||
Land use rights, net | 2,896 | 2,923 | ||||||
Deposits paid for purchase of property, plant and equipment | 295 | 212 | ||||||
Available for sales investments | - | - | ||||||
Total assets | $ | 107,815 | $ | 99,668 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Current liabilities: | ||||||||
Short-term bank loans | 9,740 | 7,280 | ||||||
Accounts payable | 17,855 | 12,520 | ||||||
Customer deposits | 1,113 | 1,138 | ||||||
Accrued salaries, allowances and other employee benefits | 3,160 | 2,981 | ||||||
Other accrued liabilities | 6,228 | 5,721 | ||||||
Income tax payable | 4,357 | 4,233 | ||||||
Total current liabilities | 42,453 | 33,873 | ||||||
Deferred tax liabilities | 5 | 5 | ||||||
Total liabilities | 42,458 | 33,878 | ||||||
Shareholders' equity: | ||||||||
Common stock, par value $0.04 per share; 12,500,000 shares
authorized; | 129 | 129 | ||||||
Additional paid-in capital | 85,104 | 85,104 | ||||||
Statutory reserves | 1,340 | 1,340 | ||||||
Accumulated deficit | (26,891 | ) | (26,590 | ) | ||||
Accumulated other comprehensive income | 10,738 | 10,855 | ||||||
Less: Treasury stock, at cost, 189,587 shares as of June 30 and March 31, 2014 | (4,663 | ) | (4,663 | ) | ||||
Total Global-Tech Advanced Innovations Inc. shareholders’ equity | 65,757 | 66,175 | ||||||
Non-controlling interests | (400 | ) | (385 | ) | ||||
Total equity | 65,357 | 65,790 | ||||||
Total liabilities and shareholders’ equity | $ | 107,815 | $ | 99,668 | ||||
Contacts:
Hong Kong
Cecilia
Au-Yeung, (852) 2814-0601
investorrelations@global-webpage.com
http://global-webpage.newshq.businesswire.com