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AU Optronics Corp. Reports 2Q2013 Financial Results (2013.07.31)

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investors conference and announced its unaudited earnings results for the second quarter of 2013(1)

Consolidated revenues in the second quarter of 2013 were NT$112,335 million (US$3,749 million) (2), up 19.2% from the previous quarter. Gross profit was NT$11,515 million (US$384 million), with the gross margin of 10.3%. Operating profit arrived at NT$5,205 million (US$174 million), with the operating margin of 4.6%. AUO's net income for the second quarter of 2013 was NT$3,982 million (US$133 million). Net income attributable to owners of Company was NT$3,924 million (US$131 million), or a basic EPS of NT$0.43 (3) (US$0.14 per ADR). 

For the first half of 2013, AUO reported consolidated revenues of NT$206,579 million (US$6,895 million), with net income of NT$662 million (US$22 million) or a basic EPS of NT$0.08(3) per common share (US$0.03 per ADR).

2Q2013 Result Highlights
AUO's unaudited consolidated results for the second quarter of 2013 were highlighted as below: 

  • Revenue was NT$112,335 million, up 19.2% quarter-over-quarter
  • Net income was NT$3,982 million
  • Basic EPS was NT$0. 43
  • Gross margin was 10.3%
  • Operating margin was 4.6%
  • EBITDA (4)margin was 19.0%

In the second quarter of 2013, shipments for AUO's large-sized panel shipments reached around 30.5 million units, up by 13.2% quarter-over-quarter. Shipments for small and medium-sized panels were around 36.6 million units, up 19.2% quarter-over-quarter.

Looking back to the second quarter, both of AUO's operating profits and net profits made significant improvements and came back to profitability. Meanwhile, the Company's EBITDA margin further improved to 19.0%, while days of inventory reduced to 40 days. Other than the continuous breakthroughs in its average sizes for TV panels, AUO's UHD 4K TV panel shipments at least doubled from the previous quarter. On top of that, after the Company overcame the learning curves for technological transition, the long-term cultivated small and medium-sized panel business has considerably improved its operational efficiency, which started to make contribution to AUO's growth momentum and earnings performance in the second quarter.

Looking into the third quarter, after the end of the energy subsidies program in China, TV brand customers have entered into a period for inventory adjustments. Nevertheless, AUO will focus on product differentiation, increase its average panel sizes and advance product specification, hoping to maintain the Company's competitiveness and operational performance during market fluctuations. In addition, facing the swift evolutions in PC as well as small and medium-sized panel industries and products, the Company will continuously innovate on product design and help its customers to create product values by offering integrated products and total solutions. For example, the innovative Embedded Touch Panel (eTP) developed by AUO has been adopted by several international brands, and shipments of eTP are expected to take off starting from the third quarter. Going forward, AUO will continue to accumulate its technology capability and provide diversified product offerings, aiming to build up a more balanced customer portfolio.

(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Amounts converted by an exchange rate of NTD29.96:USD1 based on Federal Reserve Bank of New York, USA as of June 30, 2013. 
(3) AUO issued new ADSs in May 2013. Basic EPS in both 2Q'13 and the first half of 2013 were calculated based on the weighted average outstanding shares of the first half of 2013 (9,069 million shares).
(4) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.