Lite-On Tech reports first-quarter net profit of NT$373 million, up 15% sequentially

2009/04/29

Lite-On Tech (2301) reported its first-quarter worldwide consolidated sales of NT$19.5 billion. Its net profit was NT$373 million, increasing 15% Q/Q, with an EPS of NT$0.17. Meanwhile, the Board has proposed the 2008 dividend plan of NT$1.45 DPS to shareholders. Of which, the cash and stock dividend will be NT$1.40 and NT$0.05 per share respectively, out of NT$2.01 EPS in 2008. The dividend payout ratio and cash yield reached 72% and 5.7% respectively, keeping a stable and generous dividend policy for years.

Despite of the economy slowdown and low season on the globe, our first-quarter sales of Imaging BU still increased 49% Y/Y. Additionally, Lite-On’s March sales have also increased more than 20%, compared to the previous two months’, representing the growth momentum has improved gradually.

Lite-On Tech continues to intensify its Opto-electronic product offering in the power supply, LED, camera module and keyboard to further penetrate in PC, PC peripherals and consumer electronic applications. In the second quarter, it’s expected to see the sequential growth in the top- and bottom-line, as a combination of new product launches, market share gain and improved cost structure as well as better profitability.

The first-quarter gross margin and operating margin reached 12.3% and 4.4% respectively, remaining stable at the same period in 2008 (without DDBU), thanks to the well reduction in raw material cost, inventory level and SG&A expense, as well as the operating efficiency improvement. The non-operating items posted a net expense of NT$369 million, significantly down from the prior quarter. Among all, Perlos hit the trough in the first-quarter, mainly due to the low demand of global handset market. Looking ahead, with new program ramp-ups, better end demand and smooth Asian migration, it is expected to see further improvement in Perlos’ revenue, cost structure and profitability in the second quarter.

To further strengthen the corporate governance and meet the global standard, Lite-On Tech’s Board has approved to establish the compensation committee. The committee acts on behalf of the Board to oversee, review and approve the compensation policies, plans and programs. Lite-On Tech is the first and the only listed company in Taiwan to fully authorize the compensation committee to decide on and to oversee the company’s (1) compensation plan and practice of its Chairman, executive officers and the managers; and (2) long-term incentive program and profit sharing plan, which makes Lite-On Tech a benchmark in Taiwan’s corporate governance. Lite-On Tech’s compensation committee consists of three independent board members, Chairman, Group CEO as well as CEO. Among all, only the independent board members are entitled to vote, in a hope to keep it independent, professional and impartial.

Press Contact:
Julia Wang, Director of IR/PR
+886-2-8798-2888
julia.wang@liteon.com