Lite-On Technology (2301.tw) reported first-quarter worldwide consolidated sales of NT$28.38 billion, maintaining the same level as in Q1 of last year. First quarter net profits were NT$1.45 billion, with EPS of NT$0.65. Thanks to the solid order intake and sound supply chain management, it’s expected to see the sequential growth in Lite-On.
Meanwhile, Lite-On’s Board has proposed a 2010 dividend plan offering NT$2.92 per share, based on the company’s growth over the past three years. Of that sum, the cash and stock dividend portions will be NT$2.87 and NT$0.05 per share respectively, based on NT$4.05 EPS in 2010. The dividend payout ratio and cash yield reached 72% and 7.8% respectively, maintaining a stable and generous dividend policy for years.
In the first quarter, Lite-On’s major businesses all enjoyed steady sales growth, with the Power and Optoelectronics SBGs posting growth of 18% and 26% Y-o-Y respectively. The good results were attributable to market share gains of high-end switching power supplies for server and networking systems, LED back light for TV Panels, as well as high-end camera modules for both Notebook PC and smart phones. Looking forward, sequential growth is expected in core businesses overall, thanks to ongoing market share gains, as well as the improved profit margins, resulting from better product mix, higher productivity and strong supply chain management. Lite-On’s gross margin in the 1st quarter was 11.1%, impacted by NT appreciation coupled with a rise in material and labor costs. Operating margin was 5.1%, resulting from better operating efficiency, while operating expenses (OPEX) decreased to 6.0% of total sales, down 1.2% over 2010, whereas R&D expenses were up 20% Y-o-Y. Meanwhile, the cash conversion cycle (CCC) was held within 10 days through aggressive working capital management, coupled with positive free cash flow and Lite-On’s net cash position maintained a high level of NT$13.3 billion.
Non-operating items posted a net income of NT$258 million, and Lite-On Mobile’s Q1 revenue was €137 million with growth of 3% Y-o-Y, while gross margin and operating margin were 12% and 3.3% respectively, mainly due to seasonal decline, rising cost pressures and lower revenue scale. In Q2, Lite-On Mobile’s manufacturing site in Mexico will be relocated to Asia for improvement of operating efficiency and cost structure. Meanwhile, thanks to touch modules, RF modules and new program ramp-ups in Q3, the greater operational scale, cost efficiency and profitability are expected in the 2nd half of the year.
Press Contact:
Julia Wang, Director of IR/PR
+886-2-8798-2888
Liteontech.IR@liteon.com