Lite-On Technology (2301-TW) today reported second-quarter worldwide consolidated sales of NT$30.2 billion, up 6% Q-o-Q, while posting net profits of NT$1.7 billion with EPS of NT$0.77, both up 18% Q-o-Q. Lite-On’s core businesses showed stable growth, with the Opto-Electronics business group posting a remarkable gain of 22% Q-o-Q, mainly thanks to strong shipments coupled with market share gains in tablet PCs and smart-phones globally. In the first-half, Lite-On reported cumulative sales of NT$58.6 billion, and operating profit of NT$3.07 billion, while net profits climbed to NT$3.15 billion with EPS of NT$1.41.
Despite increased labor and manufacturing cost pressures, Lite-On was able to maintain a second-quarter gross margin of 12.3% with growth of 1.2% over the first-quarter, thanks to more effective supply chain management and greater productivity, as well as well-controlled operating expenses (OPEX), resulting in operating margin of 5.4%, up 0.3% Q-o-Q. In the first-half of 2011, the OPEX percent of total sales declined 0.4% to 6.5%, compared to the first-half of 2010, whereas R&D expenses increased over 20% Y-o-Y. Meanwhile, the CCC (Cash Conversion Cycle) was well managed within 14 days. Looking forward, sequential growth is expected in core businesses overall, thanks to increased operating efficiencies and productivity as well as more effective supply chain management.
For non-operating items, Lite-On posted net income of NT$280 million in the second-quarter, of which, largely due to transitions in customers’ product models. Lite-On Mobile reported second-quarter sales of €119 million with gross margin of 9.8% and operating margin of 0.3%. In the first-half of 2011, Lite-On Mobile relocated production lines from a manufacturing site in Mexico to Asia – for which a restructuring cost of €14 million has been booked – which will lead to further improvements in operating efficiency and cost structure. Looking ahead, thanks to the introduction of customers’ new product models, increased shipments of touch modules and improved operating efficiency, resulting from concentration manufacturing in Asia, both revenue and profit margins are expected to improve.
Press Contact:
Julia Wang, Director of IR/PR
+886-2-8798-2888
Liteontech.IR@liteon.com