Lite-On Technology (2301-tw) today reported fourth quarter 2010 consolidated sales of NT$30.6 billion, up 7.1% Y-o-Y, and net profits of NT$2.19 billion, with EPS of NT$0.99. Lite-On’s 2010 annual consolidated sales reached NT$123.5 billion, with EPS of NT$4.05, both up 27% Y-o-Y, hitting record yearly highs.
Thanks to Lite-On’s dedicated focus on core business, market share expansion strategy and strong shipment to smartphones, LED TV and backlight in panels, networking and servers as well as the higher penetration in global IT brand names in 2010, all of the major business units showed steady growth and the Camera Module and Optoelectronics (LED) business units, in particular, posted remarkable gains of 70% and 40% Y-o-Y respectively. Meanwhile, both the HIS (PC keyboards and peripherals) and Power Supply business units posted growth of 20% Y-o-Y, while all four of those major business units hit record yearly highs.
Despite the increased cost pressures in 2010, Lite-On was able to keep its gross margin and operating margin at 13% and 5.9%, respectively, posted profit gains of 20% Y-o-Y. Moreover, thanks to better operating efficiency and solid concentration in China, OPEX posted 7.1% of total sales, down 0.6% over 2009, whereas R&D expenses were up 25% Y-o-Y, to further strengthen its leading position in the advanced power solution, Optoelectronics and mechanical competence. Meanwhile, the CCC (Cash Conversion Cycle) was reduced to 10 days through aggressive working capital management, coupled with the positive free cash flow generated from operations, Lite-On Tech’s net cash increased to NT$14.1 billion in Q4.
Non-operating items posted a net income of NT$2.97 billion in 2010 and Lite-On Mobile reported record revenue of €569 million up 33% Y-o-Y. Thanks to a broadening scope of products with improved cost efficiency driven by economic business scale, Lite-On Mobile’s reported gross margin and operating margin of 13.6% and 5.3% respectively while posting net profits of €14 million. Looking ahead, Lite-On Mobile will focus on revenue growth by increasing share penetration with key customers and better product offering by ramping up the touch modules and new business in RF modules, and increased profits resulting from higher productivity and cost efficiency.
In 2011, while effective supply chain management is in place for further expansion, sequential growth is expected through synergies of multi-SBG core capability in the advanced power solution, cameral module, touch solution, LED backlight and lighting module as well as the mechanical competence, connected device and system solution.
Press Contact:
Julia Wang,
Director of IR/PR
+886-2-8798-2888
Liteontech.IR@liteon.com