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; | 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 | |||||||||
Contacts:
Cecilia Au-Yeung, (852)
2814-0601 (Hong Kong)
investorrelations@global-webpage.com
http://global-webpage.newshq.businesswire.com
