Lite-On reports NT$ 638 million net profit in the first quarter of 2008

2008/04/30

Lite-On Technology Corporation (TAIEX: 2301 TW) today announced net earnings of NT$638 million, or EPS of NT$ 0.3. The company’s Board of Directors also approved the transfer of the Digital Display Business to Wistron Corporation for around NT$9.2 billion in cash. The transaction is expected to complete by the third quarter of 2008. To enhance cooperative ties with Wistron, Lite-On plans to take part in the private placement issued by Wistron, with an investment amount of up to NT$1.2 billion. In addition, the Board has proposed the 2007 dividend plan of NT$3.0 DPS to shareholders. Of that, the cash and stock dividend will be NT$2.95 and NT$0.05 per share respectively, out of NT$3.45 EPS in 2007. The payout ratio and dividend yield reached 87% and 8.2% respectively, the record high in 5 years.

Despite seasonal weakness, the appreciation of the NT dollar, and the Digital Display Business fire in China, Lite-On posted a first quarter revenue of NT$40.87 billion, a 7% increase from the same period in 2007 after ramping up on new product launches and new applications. On top of that, Power Supply and LED have posted a 40% and 15% revenue growth on a yearly basis respectively, thanks to strong demand in high-end products and new applications, as well as acquisition synergies from LSE.

First quarter gross profit reached NT$3.55 billion and gross margin was 8.7%, slightly down from 9.5% in the previous quarter. Operating profit posted was NT$860 million and the operating margin was 2.1%, down from the 3.6% of the prior quarter. The margin’s decline was a combination of higher raw material prices, higher labor costs in China, the expense provision of the employee bonus as well as the higher overhead costs, due to the fire incident.

Thanks to solid growth in new products and new applications, Power Supply and LED sales will continue to grow by 30~35% and 10~15% year-on-year respectively in the second quarter. Operating margins will improve to 2.3%~2.8%, up from 2.1% in the previous quarter as a result of cost efficiency and product-mix improvements. With continued new product development Perlos expects sales to grow 5~10% and operating margins to stay about 2~4%, due to improved operating efficiency.

Looking forward, Lite-On will concentrate on simplifying the product portfolio and focusing on the growth of core businesses to fulfill its customer-centric growth strategy and further strengthen its leading position in the global optoelectronic components industry.

Press information contact:
Investor and media Lite-On Technology Corporation, Julia Wang
Tel.: +886 (2)8798-2888 ext. 6536 E-mail: Julia.wang@liteon.com