AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investors conference and announced its unaudited earnings results for the second quarter of 2012(1).
Consolidated revenue in the second quarter of 2012 was NT$95,189 million (US$3,194 million) (2), up 17.4% from the previous quarter. Gross profit was -NT$3,186 million (-US$107 million), with the gross margin of -3.3%. Operating loss was NT$10,470 million (US$351 million), with the operating margin of -11%. AUO's net loss for the second quarter of 2012 was NT$12,461 million (US$418 million). Net loss attributable to equity holders of the parent company was NT$12,274 million (US$412 million), or a basic EPS of -NT$1.39 (-US$0.47 per ADR).
2Q2012 Result Highlights
AUO's unaudited consolidated results for the second quarter of 2012 were highlighted as below:
- Revenue was NT$95,189 million, up 17.4% quarter-over-quarter
- Net loss was NT$12,461 million
- Basic EPS was -NT$1.39
- Gross margin was -3.3%, improved by 4.7% from the previous quarter
- Operating margin was -11%, improved by 5.6% from the previous quarter
- EBITDA (3) margin was 9.4%
In the second quarter of 2012, shipments for AUO's large-sized panel shipments reached around 31.7 million units, up by 16.5% quarter-over-quarter. Shipments for small and medium-sized panels were around 38.0 million units, up 3.6% quarter-over-quarter.
“Through proper inventory control in the second quarter, our days of inventory decreased to 49 days, compared with 53 days in the previous quarter. Both of our gross margin and operating margin have improved during the quarter. Meanwhile, our EBITDA margin also improved sequentially to 9.4%.” said Mr. Andy Yang, Chief Financial Officer of AUO.
Over the past few quarters, AUO has worked proactively in the development of new technologies and invested in the high-end displays, in an effort to attempt to overcome the adverse effects of the weak macroeconomics. Although the introduction of the new technologies and new products may affect the company's operating results in the short-term, the AUO management team believes this is the best way to enhance the Company's long-term competitiveness, which could also help the Company to capture the business opportunities from key customers in the high end product segment. In the future, AUO will continuously focus on the innovation of technologies and improve the efficiency of mass production, aiming to effectively transform value added products into profitability.
(1) All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan (“ROC GAAP”).
(2) Amounts converted by an exchange rate of NTD29.80:USD1 based on Federal Reserve Bank of New York, USA as of June 30, 2012.
(3) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.