AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investors conference and announced its unaudited results for the fourth quarter of 2010(1).
AUO posted consolidated revenue of NT$102,605 million (US$3,521 million) (2), down 17.5% from the previous quarter. Gross profit was at -NT$4,537 million (US$156 million), with the gross margin of -4.4%. Operating loss was at NT$11,080 million (US$380 million), with the operating loss margin of 10.8%. AUO's net loss for the fourth quarter was at NT$11,339 million (US$389 million). Net loss attributable to equity holders of the parent company was NT$11,465 million (US$393 million), with basic EPS of -NT$1.3 per common share (-US$0.45 per ADR).
For the year of 2010, AUO reported consolidated revenues of NT$467,158 million (US$16,320 million), with net income of NT$7,408 million (US$254 million) or basic EPS of NT$0.76 per common share (US$0.26 per ADR). In 2010, shipments for AUO's large-sized panels exceeded 113.5 million units, up 26.7% year-over-year. Meanwhile, shipments of small- and medium-sized panels reached around 220.9 million units, down 3.4% year-over-year.
4Q2010 Result Highlights
AUO's unaudited consolidated results for the fourth quarter of 2010 were highlighted as below:
- Revenue of NT$102,605 million, down 17.5% quarter-over-quarter
- Net loss of NT$11,339 million
- Basic EPS of -NT$1.3 per common share
- Gross margin of -4.4%
- Operating margin of -10.8%
- EBITDA (3) margin of 10.7%
Fiscal 2010 Result Highlights
AUO reported the following unaudited consolidated results for the full year 2010:
- Revenue of NT$467,158 million, up 30% year-over-year
- Net income of NT$7,408 million
- Basic EPS of NT$0.76 per common share
- Gross margin of 7.8%
- Operating margin of 2.2%
- EBITDA (3) margin of 21.3%
“Owing to the lower-than-expected TV panel prices, inventory control by the customers, and the currency influence of NT dollar appreciation, AUO's operating performance in the fourth quarter of 2010 fell short of expectations. Fortunately, the Company maintained profitable throughout the year of 2010,” said Mr. Andy Yang, Chief Financial Officer of AUO. “As the Company proactively adjusted the capacity utilization rates in the fourth quarter, our quarter-end inventory amounts were able to decrease sequentially. The Company's EBITDA margins also maintained a leading position. In addition, the Company's inventory turnover days remained at 40 days at the end of the fourth quarter, the same as those in the previous quarter.”
Looking into the first quarter of 2011, as customers' inventory adjustments gradually come to an end, demands are expected to gradually recover. The Company's panel shipments and capacity utilization rates are also expected to improve quarter over quarter. At the same time, AUO will continue to implement the “value-oriented” business strategy in 2011. For example, leading-edge technologies to produce 3D panels, touch modules, OLED displays and other high-end, value-added products are anticipated to enter mass production this year. On the other hand, the Company will continue to strengthen the strategic alliance with customers, and hope to improve the product profitability as well as asset turnover ratios, which could eventually contribute to a better return on equity (ROE).
(1) All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan (“ROC GAAP”)
(2) Amounts converted by an exchange rate of NTD29.14:USD1 based on Federal Reserve Bank of New York, USA as of Dec. 31, 2010.
(3) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.