Lite-On Technology (2301.tw) reported first-quarter worldwide consolidated sales of NT$28.67 billion, increasing 47% Y-o-Y, resulting in better-than-market growth in five consecutive quarters. First quarter net profits were NT$1.81 billion, increasing 384% Y-o-Y, with EPS of NT$0.82, up 4-fold Y-o-Y. The company’s operating results are expected to grow throughout 2010. Meanwhile, Lite-On’s Board has proposed a 2009 dividend plan offering NT$2.30 per share to shareholders. Of that sum, the cash and stock dividend portions will be NT$2.25 and NT$0.05 per share respectively, based on NT$3.2 EPS in 2009. The dividend payout ratio and cash yield reached 72% and 5.4% respectively, maintaining a stable and generous dividend policy for years.
As for the 2nd quarter outlook, strong sales are expected in core businesses overall, thanks to a better product mix and ongoing market share gains coupled with rising demand from the 3C market. Lite-On’s major business units, including Power Supply, Optoelectronics (LED), Camera Module and HIS (Human Input Solutions – PC keyboards and peripherals) business will all post sequential revenue growth. Meanwhile, profit margins will be substantially improved, resulting from better product mix, higher productivity and operating efficiency.
In the 1st quarter, Lite-On’s major business units all enjoyed steady sales growth, with the Optoelectronics and Camera Module business units posting growth of 4% and 10% respectively over the prior quarter. Compared to the same period last year, the Optoelectronics, Camera Module, Power Supply and HIS business units posted respective growth of 59%, 46%, 28%, and 23% Y-o-Y. Lite-On’s gross margin in the 1st quarter was 12.4%, impacted by a rise in material and labor costs. Operating profit was up 73% Y-o-Y, with operating margin reaching 5.2%. Second quarter profit margins are anticipated to improve sequentially.
Non-operating items posted a net income of NT$679 million. Significantly, Perlos’1st quarter revenue was €133 million with growth of 2% Q-o-Q and 87% Y-o-Y, hitting a record high since the company was acquired by Lite-On in 2007. Perlos also posted a gross margin of 15.2% and operating margin of 6.2%, hitting record highs in six consecutive quarters, attributable to ongoing productivity improvement and stringent cost control. Net profits in the 1st quarter reached €5.2 million. Perlos’ business development and operating performance are expected to remain sustainable in the 2nd quarter, thanks to continuous new program ramp-ups and constant productivity improvements, which should offset rising labor costs, and stay confident in 2010 top and bottom-line performance.
Press Contact:
Julia Wang,
Director of IR/PR
+886-2-8798-2888
Liteontech.IR@liteon.com
