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 2010(1).
For the second quarter ended June 30, 2010, AUO posted consolidated revenue of NT$128,586 million (US$3,985 million)(2), up 15.3% from the previous quarter. Gross profit improved 42.4% quarter-over-quarter to NT$20,324 million (US$630 million), while operating profit grew 62.6% quarter-over-quarter to NT$13,215 million (US$410 million). AUO's net income came in at NT$11,246 million (US$348 million), up 54.6% quarter-over-quarter. Net Income attributable to equity holders of the parent company was NT$10,957 million (US$340 million), with basic EPS of NT$1.24 per common share (US$0.38 per ADR).
For the first half of 2010, AUO reported consolidated revenues of NT$240,150 million (US$7,442 million), with net income of NT$18,520 million (US$574 million) or basic EPS of NT$2.05 per common share (US$0.63 per ADR).
2Q2010 Result Highlights
AUO reported the following unaudited consolidated highlighted results for the second quarter of 2010:
- Revenue of NT$128,586 million, up 15.3% quarter-over-quarter
- Net income of NT$11,246 million
- Basic EPS of NT$1.24 per common share
- Gross margin of 15.8%
- Operating margin of 10.3%
- EBITDA(3) margin of 27.5%
For the second quarter, AUO's large-sized panels reached 29.62 million units, up 8.8% quarter-over-quarter and 32.2% year-over-year. Shipments of small- and medium-sized panels exceeded 55.43 million units, down 2.7% quarter-over-quarter and 8.9% year-over-year. For the first half of 2010, AUO's large-sized panels totaled 56.84 million units and small- and medium-sized panels exceeded 112.42 million units.
“AUO's second quarter results were generally in line with our guidance set in the Investor Conference on April 22, “ said Mr. Andy Yang, Chief Financial Officer of AUO. “Thanks to a better product mix, growing adoption rates of LED backlight in high-end panels and nearly full capacity utilization rates, our gross margin increased from last quarter's 12.8% to 15.8% this quarter. Operating margin also increased from 7.3% last quarter to 10.3%, while EBITDA margin maintained at 27.5%. Starting from last year, AUO has been actively forging strategic alliance with our customers. These alliances are bringing synergies to us. By working closely with clients and involving early in the design stages under a win-win interactive mode, we are able to better understand the end demand, especially for the high-end products, and timely respond to the market trends.”
AUO has officially acquired the G4.5 fab of Toshiba Mobile Display Co., Ltd. ("TMD") in Singapore, effective on July 1. This fab will bring in approximately 45,000 sheets of LTPS (low temperature polysilicon) capacity per month, which enables AUO to better serve its customers in the high-end display markets. In the meantime, AUO will continue to strengthen its alliances with customers and adjust its product portfolio in order to optimize values created by capacity utilization.
(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 NTD32.27:USD1 based on Federal Reserve Bank of New York, USA as of June 30, 2010.
(3) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.
Corporate Communications Division
AU Optronics Corp.
No.1, Li-Hsin RD 2, Science-Based Industrial Park,
Hsinchu City 300, Taiwan, R.O.C.