Third Quarter 2006 Unaudited Consolidated Financial Highlights
* Revenues increased 17.1% QoQ to NT$71.313 billion
* Net income increased 236.9% QoQ to NT$613 million
* Earnings per share (basic EPS) of NT$0.10 per common share (US$0.03 per ADS)
* Gross margin: 8.3%
* Operating margin: 2.9%
AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 3Q2006. For the third quarter ended September 30, 2006, AUO's consolidated revenue totaled NT$71.31 billion (US$2.15 billion*), net income NT$613 million (US$19 million), and basic EPS NT$0.10 per common share (US$0.03 per ADS). For the nine months ended September 30, 2006, AUO's consolidated revenues totaled NT$198.46 billion (US$6.00 billion), net income NT$7.45 billion (US$225 million), and basic EPS NT$1.22 per common share (US$0.37 per ADS.)
Mr. Max Cheng, Vice President and Chief Financial Officer of AUO noted that 3Q2006 panel shipments are better than the Company's guidance announced on July 25. Shipments of large-sized panels increased 24.6% to 12.6 million from 2Q, and a remarkable Y-o-Y growth of 58.4%. In the mean time, shipments of small- and medium-sized panels rose by 15.1% post 20.8 million from last quarter, up 18.3% from a year earlier. Although the ASP (average selling price) in some PC-related applications had hit rock bottom and began to rebound, the company's operation in the third quarter still experienced the drop in ASP in LCD TV panels, resulting panel ASP by square meter declined by about 12%. However, through effective increase in capacity utilization rate and component cost-down, the company's 3Q gross margin recorded 8.3%, operating margin grew to 2.9% from 2.2% of last quarter, and maintained a stable EBITDA margin.
Earlier this month, AUO completed its merger with Quanta Display Inc., ushering totaled capacity of the company's G5 and G6 lines leaped to the world's leading position. AUO will leverage its competitive advantage to not only increase the shipment volume and revenue in the next coming quarters but also assure worldwide customers with the most flexible solutions to meet their needs.
*Amounts converted by an exchange rate of NTD33.1:USD1 as of September 29, 2006.