Lite-On Technology Corp. (2301-tw) today reported the fourth quarter of 2009 net profit of NT$2.56 billion (or EPS NT$1.16), up 7-fold Y-o-Y and its operating profit reached NT$2.09 billion with 7.3% operating profit margin, both hitting a record high in two years. Aided by the well order intake and solid production, Lite-On Tech's shipment in Q110 is expected to maintain the similar level as its peak season in the prior quarter, ahead of the market, as well as gearing up the top-line growth into 2010.
Despite the end demand slowdown, caused by the global financial crisis in 2009, Lite-On Tech has delivered the sequential growth quarter by quarter. Consolidated revenue for 2009 was NT$97.2 billion, while posting a net profit of NT$7.05 billion, with EPS of NT$3.2, increased 60% Y-o-Y.
Attributable to Lite-On's ongoing expansion in market share and new product launches, coupled with stable end demand, the consolidated revenue for Q4 was NT$28.6 billion, up an impressive 8% sequentially and 13% yearly, for Lite-On's best quarterly results in 2009. The sales of all major business units showed yearly growth, with the Optoelectronics (LED), Power Supplies and MFP (Multi-Function Peripherals) units posting remarkable annual growth of 30%, 17% and 12% respectively.
The fourth quarter gross margin and operating margin were 14.6% and 7.3% respectively, sequentially up from the prior quarter and have regained its Q408 peak level, as a combination of the upturn in productivity, utilizations, as well as the effective supply chain management. Meanwhile, thanks to its aggressive cash management and stable inventory policy, that has not only strongly fulfilled clients demand but also reduced the CCC (Cash Conversion Cycle) down to 5 days. Coupled with the positive free cash flow, generated from the operation, Lite-On’s net cash has reached NT$13 billion in the fourth quarter, enabling its further growth and market expansion globally.
Non-operating items posted a net income of NT$886 million, including the gain of NT$752 million from the disposal of 6.6% stake in Silitech. Perlos' Q4 revenue grew 6% Q-o-Q and 52% Y-o-Y, while its gross margin and operating margin were 13.2% and 3.2% respectively. Due to a one-time reversal of deferred tax assets in Finland, Perlos posted an increased tax expense of €6 million. In spite of the declining global handset market in 2009, Perlos has steadily posted annual growth of 13%. Taking full advantage of Asian migration, higher utilizations and cost efficiency, Perlos has achieved the break-even operating performance in Q2 and positive OP margin in the second half of 2009. Looking ahead, thanks to the increasing share penetration in key clients with ongoing program ramp-ups and a broadening scope of products and services, Perlos targets the greater than market top-line growth. On top of that, Perlos will strongly focus on improving gross and operating profits, resulting from productivity improvement and SG&A control.
In 2010, while the global PC, communication and consumer electronics market will steadily grow, Lite-On will not only intensify the key product offering, but also well prepare for sufficient labor supply and effective supply chain management in place for further profitable growth.
Lite-On Green Technologies, Inc. (LOGT), a wholly owned subsidiary of Lite-On Tech, today announced its new 41MWp PV solar projects in China. These grid-connected solar power plant projects are planned to be completed by the end of 2011. Of that sum, 4 MWp of these projects, including thin film solar integrated greenhouses and roof-top systems, are scheduled to be finished in 2010. LOGT is one of the few PV solar system integrators (EPC) who are capable of constructing mega watt systems in both Europe and Asia. In 2009, the first whole year in operation, LOGT realized a profitable one, as a result of successful completion of high profile projects and innovative solution offerings. As the recognition of LOGT brand in the PV solar industry continues to improve, LOGT expects to reach or exceed its 2010 objectives to sign new projects up to 50 MWp and complete construction of 15 MWp projects.
