Lite-On Technology (2301-TW) today reported third-quarter worldwide consolidated sales of NT$31.24 billion, up 3.5% Q-o-Q, while posting net profits of NT$2.58 billion, the highest quarterly net profits in four years, up 51.4% of the prior quarter, with EPS of NT$1.15. Total sales from January through September of 2011 reached NT$89.81 billion, with net profits of NT$5.73 billion and accumulated EPS of NT$2.56.
In 2011, Lite-On’s consolidated sales grew continuously quarter by quarter. Thanks to well-diversified applications and market share gains in Smartphone and IT industries, core business groups including Power Supply, Opto-Electronics and Mechanical Competences showed stable growth. In the third-quarter, Lite-On’s gross margin came in at 13.1%, up 0.8% over the second-quarter, with the growth mainly attributable to greater productivity and effective supply chain management, while posting an operating margin of 6.0%, up 0.6% Q-o-Q and the greatest quarterly margin in 2011, resulted from operating leverage with better cost efficiency.
Meanwhile, the CCC (Cash Conversion Cycle) was well managed within 10 days, through aggressive working capital management. In the third-quarter, Lite-On’s net cash position remained at NT$ 7.6 billion, after a NT$7 billion cash dividend distribution, as a result of the efficient cash management capability. Looking forward, stable business and margins are expected for cost efficiency, continuous R&D investments in high-end products and effective supply chain management.
For non-operating items, Lite-On posted net income of NT$1,137 million in Q3, of which, Lite-On Mobile（LOM） reported third-quarter sales of €173 million up 46% Q-o-Q, hitting a sales record quarterly high. Lite-On Mobile also posted gross margin of 12.6% and operating margin of 6.5% coupled with customer bad-debt reversal of €9 million, resulting in net profits of €13.8 million in the third quarter.
Thanks to LOM’s strong competence in the integrated mechanics, including plastic, metal and decoration, antennas and touch modules, LOM has become the key supplier to the major client, while transforming its platform. Looking ahead, thanks to increased shipments of LOM’s integrated mechanics, the new program ramp-ups in key customers and resulting from concentration manufacturing in Asia, further improvement of revenue, cost structure and profitability are expected.
Press Contact:
Julia Wang, Director of IR/PR
+886-2-8798-2888
Liteontech.IR@liteon.com