HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its net sales and earnings for the quarter ended June 30, 2012 (the Company’s first quarter of fiscal 2013).
Net sales for the quarter ended June 30, 2012 were $20.5 million, up approximately 54% when compared to $13.3 million for the corresponding quarter in fiscal 2012. As a result of the discontinued operation of our home appliance segment in January 2012, proper accounting treatment requires that net sales for the first quarter of fiscal 2012 exclude $11.8 million in sales of home appliances.
Net income for the first quarter of fiscal 2013 was $0.05 million, or $0.02 per share, compared to a net loss of $1.6 million, or $0.51 per share, for the first quarter of fiscal 2012.
John C.K. Sham, President and Chief Executive Officer, said, “Our electronic components business increased 78% in the first quarter of fiscal 2013 over the corresponding period in fiscal 2012, which nearly offset the absence of sales from our discontinued home appliances segment (based on home appliances sales in the corresponding quarter of fiscal 2012). Gross margins for the quarter were adversely impacted by depreciation charges of approximately $320,000 for the facilities which were formerly utilized for the home appliances business. Additionally, in the first quarter of fiscal 2012, the home appliances business absorbed approximately $0.9 million of G&A expenses, which were reflected in the loss from discontinued operations, whereas those expenses in the first quarter of fiscal 2013 were reflected mostly in selling, general and administrative expenses.”
Mr. Sham continued, “We are pleased with the continued strength of our CCM business, specifically in domestic markets, and expect further improvements in fiscal 2013. We expect to begin incorporating several new products into our existing product lines in fiscal 2013.”
Mr. Sham concluded, “We continue our efforts to develop products for use in certain medical applications which, while not currently generating significant revenues, we remain optimistic will ultimately have a positive impact on our overall business. We are pleased with our successful exit from the home appliance business, which caused no major disruption to our financial position. We are hopeful that we will be able to secure a lessee for the facilities that were previously occupied by our home appliances operations which we anticipate would serve to offset a portion of the Company’s fixed costs.”
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 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, | |||||||
| 2012 | 2011 | ||||||
| (unaudited) | (unaudited) | ||||||
| Net sales | $ | 20,492 | $ | 13,264 | |||
| Cost of goods sold | (17,450) | (11,884) | |||||
| Gross profit | 3,042 | 1,380 | |||||
| Selling, general and administrative expenses | (3,452) | (2,652) | |||||
| Other operating profit | - | 34 | |||||
| Operating loss | (410) | (1,238) | |||||
| Interest income, net | 135 | 52 | |||||
| Other income, net | 298 | 468 | |||||
| Income (Loss) from continuing operations before income taxes | 23 | (718) | |||||
| Income tax expenses | - | (31) | |||||
| Income (Loss) from continuing operations | 23 | (749) | |||||
| Income (Loss) from discontinued operations, net of tax | - | (831) | |||||
| Net income (loss) | 23 | (1,580) | |||||
| Net income (loss) attributable to non-controlling interests | 26 | 27 | |||||
| Net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc. | $ | 49 | $ | (1,553) | |||
| Basic and diluted earnings (loss) per common share | $ | 0.02 | $ | (0.51) | |||
| Basic and diluted weighted average number of shares of common shares | 3,040 | 3,039 | |||||
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED
BALANCE SHEETS
(Amounts expressed in thousands of United States dollars)
| June 30, 2012 | March 31, 2012 | ||||||
| (unaudited) | (audited) | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 30,259 | $ | 39,793 | |||
| Time deposits | 6,294 | - | |||||
| Restricted cash | 6,152 | 4,546 | |||||
| Available-for-sale investments | 2,006 | 2,006 | |||||
| Accounts and bills receivable, net | 33,599 | 30,273 | |||||
| Inventories | 6,678 | 5,374 | |||||
| Prepaid expenses | 121 | 150 | |||||
| Deposits and other assets | 558 | 769 | |||||
| Amount due from a related party | 18 | 12 | |||||
| Total current assets | 85,685 | 82,923 | |||||
| Interests in jointly-controlled entities | - | - | |||||
| Property, plant and equipment, net | 21,235 | 21,934 | |||||
| Land use rights, net | 3,032 | 3,083 | |||||
| Deposits paid for purchase of property, plant and equipment | 329 | 66 | |||||
| Available for sales investments | 1,038 | 1,034 | |||||
| Total assets | $ | 111,319 | $ | 109,040 | |||
| LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||
| Current liabilities: | |||||||
| Short-term bank loans | 5,083 | 4,000 | |||||
| Accounts payable | 9,333 | 8,164 | |||||
| Customer deposits | 648 | 861 | |||||
| Accrued salaries, allowances and other employee benefits | 3,431 | 3,102 | |||||
| Other accrued liabilities | 7,175 | 6,638 | |||||
| Income tax payable | 5,934 | 6,158 | |||||
| Total current liabilities | 31,604 | 28,923 | |||||
| Deferred tax liabilities | 27 | 27 | |||||
| Total liabilities | 31,631 | 28,950 | |||||
|
Shareholders' equity: |
|
|
|
|
|||
|
Common stock, par value $0.04 per share; 12,500,000 shares
authorized; 3,229,314 shares issued |
129 |
129 |
|||||
| Additional paid-in capital | 84,795 | 84,786 | |||||
| Accumulated deficit | (9,642) | (9,691) | |||||
| Accumulated other comprehensive income | 9,263 | 9,697 | |||||
| Less: Treasury stock, at cost, 189,587 shares as of June 30 and March 31, 2012 | (4,663) | (4,663) | |||||
| Total Global-Tech Advanced Innovations Inc. shareholders’ equity | 79,882 | 80,258 | |||||
| Non-controlling interests | (194) | (168) | |||||
| Total equity | 79,688 | 80,090 | |||||
| Total liabilities and shareholders’ equity | $ | 111,319 | $ | 109,040 | |||