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AU Optronics Corp. Reports 2Q2011 Financial Results (2011.07.27)

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investors conference and announced its unaudited results for the second quarter of 2011(1)

AUO posted consolidated revenue of NT$98,050 million (US$3,406 million) (2), up 5.2% from the previous quarter. Gross profit was at -NT$2,482 million (-US$86 million), with the gross margin of -2.5%. Operating loss was at NT$9,120 million (US$317 million), with the operating margin of -9.3%. AUO's net loss for the second quarter was at NT$10,766 million (US$374 million). Net loss attributable to equity holders of the parent company was NT$10,801 million (US$375 million), with basic EPS of -NT$1.22 per common share (-US$0.42 per ADR).

2Q2011 Result Highlights
AUO's unaudited consolidated results for the second quarter of 2011 were highlighted as below: 

  • Revenue of NT$98,050 million, up 5.2% quarter-over-quarter
  • Net loss of NT$10,766 million
  • Basic EPS of -NT$1.22 per common share
  • Gross margin of -2.5% 
  • Operating margin of -9.3%
  • EBITDA (3) margin of 13.6%

In the second quarter of 2011, shipments for AUO's large-sized panels exceeded 29.6 million units, up 4.3% quarter-over-quarter, and shipments of small and medium-sized panels reached around 45.5 million units, up 4.6% quarter-over-quarter.

“In the second quarter of 2011, owing to macro uncertainties and customers' inventory adjustments, which impacted the order momentum, AUO's revenue growth and panel pricing trend were weaker than expected. Consequently, our second quarter revenue grew at merely 5.2% quarter-over-quarter. However, our management team has timely adjusted our capacity allocation and prioritized orders with higher profitability. As a result, our EBITDA margin improved to 13.6% and our net debt-to-equity ratio remained stable at 44.9% in the second quarter,” said Mr. Andy Yang, Chief Financial Officer of AUO.

Looking into the third quarter of 2011, with ongoing macroeconomic concerns, AUO will strictly control its inventory level and revise down its annual capital expenditures. Despite of the capital expenditure cut, AUO will maintain its investments in advanced technology and higher-value products, in order to achieve higher asset turnover ratios and to enhance the Company's long-term competitiveness. Meanwhile, AUO will focus on the profitability and continue to optimize its product portfolios, including the development of 3D technologies applying on TV and notebook products and other high value-added products, such as tablet PCs, smartphones, and high-end car displays, aiming that the increasing portion of the high value products would gradually create positive impacts on the Company's operations.

(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 NTD28.79:USD1 based on Federal Reserve Bank of New York, USA as of June 30, 2011. 
(3) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.