HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its financial results for the fiscal quarter ended December 31, 2010 (the Company's third quarter of fiscal 2011).
Net sales for the third quarter of fiscal 2011 were $24.4 million, compared to $25.7 million for the corresponding quarter in fiscal 2010. Net loss for the third quarter of fiscal 2011 was $1.5 million, or $0.48 per share, compared to a net income of $0.7 million, or $0.24 per share, for the third quarter of fiscal 2010.
Net sales for the nine months ended December 31, 2010 were $75.2 million, compared to $80.4 million in the corresponding nine-month period in fiscal 2010. Net loss for the first nine months of fiscal 2011 was $1.5 million, or $0.51 per share, compared to a net income of $3.4 million, or $1.13 per share, for the first nine months of fiscal 2010.
John C.K. Sham, the Company's President and Chief Executive Officer, said: "Despite increased revenues from our electronic component and electronic manufacturing service businesses when compared to the prior fiscal period, net results remain affected by the continued weakness in our floor care business and margin pressures, resulting from continuing inflation in China and significant increases in the cost of labor."
Mr. Sham continued, "The demand for our electronic components remains relatively strong, but growth of our electronic component and manufacturing service businesses has been adversely affected by a temporary shortage in supply of sensors for mobile phones and digital cameras."
Mr. Sham concluded, "We remain optimistic that our continuing efforts to further develop and expand our product offerings in China, together with improved productivity, will ultimately lead to more favorable financial results."
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) camera modules (CCMs) and floor care products. 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 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.
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GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES |
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CONSOLIDATED STATEMENTS OF OPERATIONS |
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(Amounts expressed in thousands of United States dollars, except per share data) |
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Three Months Ended |
Nine Months Ended |
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| 2010 | 2009 | 2010 | 2009 | |||||||||
| (unaudited) | (unaudited) | (unaudited) | (unaudited) | |||||||||
| Net sales | $ | 24,404 | $ | 25,734 | $ | 75,190 | $ | 80,374 | ||||
| Cost of goods sold | (22,054) | (21,455) | (66,583) | (67,230) | ||||||||
| Gross profit | 2,350 | 4,279 | 8,607 | 13,144 | ||||||||
| Selling, general and administrative expenses | (3,851) | (3,572) | (11,778) | (10,253) | ||||||||
| Other operating income (expense) | 1 | (46) | 1,114 | (140) | ||||||||
| Operating income (loss) | (1,500) | 661 | (2,057) | 2,751 | ||||||||
| Interest expense | (103) | (22) | (200) | (35) | ||||||||
| Interest income | 137 | 62 | 370 | 216 | ||||||||
| Other income, net | 97 | 199 | 591 | 703 | ||||||||
| Income (loss) from operation before income taxes | (1,369) | 900 | (1,296) | 3,635 | ||||||||
| Provision for income taxes | (82) | (170) | (253) | (214) | ||||||||
| Net income (loss) | $ | (1,451) | $ | 730 | $ | (1,549) | $ | 3,421 | ||||
| Basic and diluted earnings (loss) per common share | $ | (0.48) | $ | 0.24 | $ | (0.51) | $ | 1.13 | ||||
| Basic and diluted weighted average number of shares outstanding | 3,039 | 3,038 | 3,039 | 3,038 | ||||||||
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GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(Amounts expressed in thousands of United States dollars) |
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December 31, |
March 31, |
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| (unaudited) | (audited) | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 27,648 | $ | 24,809 | |||
| Time deposits | 1,515 | - | |||||
| Restricted cash | 20,171 | 4,398 | |||||
| Available-for-sale investments | 6 | 15,990 | |||||
| Accounts and bills receivable, net | 32,419 | 23,244 | |||||
| Inventories | 11,024 | 9,410 | |||||
| Prepaid expenses | 152 | 278 | |||||
| Deposits and other assets | 3,250 | 1,915 | |||||
| Legal claims receivable | 18 | 5,090 | |||||
| Amount due from a related party | 29 | 28 | |||||
| Amount due from a jointly-controlled entity | 14 | 22 | |||||
| Total current assets | 96,246 | 85,184 | |||||
| Interests in jointly-controlled entities | - | - | |||||
| Property, plant and equipment, net | 25,129 | 22,708 | |||||
| Land use rights, net | 3,063 | 3,033 | |||||
| Deposits paid for purchase of property, plant and equipment | 128 | 58 | |||||
| Other investments | 2,999 | - | |||||
| Deferred tax assets | 104 | 104 | |||||
| Total assets | $ | 127,669 | $ | 111,087 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Short-term bank borrowings | 11,295 | - | |||||
| Accounts payable | 10,806 | 5,131 | |||||
| Bills payable | 1,403 | 1,504 | |||||
| Discounted bills | 4,994 | 3,364 | |||||
| Temporary receipts | 2,280 | 965 | |||||
| Accrued salaries, allowances and other employee benefits | 4,637 | 3,777 | |||||
| Accrual for loss contingencies | 26 | 5,967 | |||||
| Other accrued liabilities | 8,131 | 6,896 | |||||
| Income tax payable | 5,454 | 5,709 | |||||
| Total current liabilities | 49,026 | 33,313 | |||||
| Deferred tax liabilities | 38 | 38 | |||||
| Total liabilities | 49,064 | 33,351 | |||||
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Shareholders' equity: |
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| Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,228,564 shares issued | |||||||
| and outstanding as of December 31 and March 31, 2010 | 129 | 129 | |||||
| Additional paid-in capital | 84,763 | 84,280 | |||||
| Accumulated deficit | (8,637) | (7,088) | |||||
| Accumulated other comprehensive income | 7,013 | 5,078 | |||||
| Less: Treasury stock, at cost, 189,587 shares as of December 31 and March 31, 2010 | (4,663) | (4,663) | |||||
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Total shareholders' equity |
78,605 | 77,736 | |||||
| Total liabilities and shareholders' equity | $ | 127,669 | $ | 111,087 | |||