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Global-Tech Advanced Innovations Reports First Quarter Results for Fiscal 2010HONG KONG --(Business Wire)-- Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its net sales and earnings for the quarter ended June 30, 2009 (the Company's first quarter of fiscal 2010). Net sales for the quarter ended June 30, 2009 were $25.7 million, compared to $26.8 million for the corresponding quarter in fiscal 2009. Included in net sales for the first quarter of fiscal 2010 were sales of approximately $16.5 million of floor care products and $7.7 million of electronic components. Net income for the first quarter of fiscal 2010 was $1.2 million, or $0.38 per share, compared to a net income of $1.9 million, or $0.63 per share, for the first quarter of fiscal 2009. Included in net income for the first quarter of fiscal 2009 was a non-recurring gain of $1.8 million related to pending litigation. Excluding this non-recurring gain, net income for the first quarter of fiscal 2009 was $0.01 million, or $0.04, per share. John C.K. Sham, President and Chief Executive Officer, said, "Despite the decrease in net sales, we are pleased to report that our gross profit margins for the first quarter of fiscal 2010, when compared to the corresponding quarter in fiscal 2009, improved from 9% to 17%. Additionally, our new telecommunication manufacturing service business generated $1.5 million in sales with significant operating income." Mr. Sham continued, "Our efforts on improving profitability through better product mix and efficiency, coupled with our focus on cost control management, have positively impacted our overall operating results. In particular, sales of higher resolution camera modules for cellular phones have grown substantially and we expect this improved mix to continue for the remainder of 2009." Mr. Sham concluded, "Despite the current challenging economic conditions, we expect net sales in our floor care, electronic component and telecommunication manufacturing service businesses to remain relatively stable for the balance of the year. We continue to believe that the Company's prospects are promising and intend to utilize our available resources to position the Company for long-term growth, in spite of the current adverse market conditions." Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs) and floor care products. The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in North America, Europe, and other countries throughout the world. Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company's customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China's trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances. GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Amounts expressed in thousands of United States dollars except per share data) Three Months Ended June 30, 2009 2008 (unaudited) (unaudited) Net sales $ 25,663 $ 26,777 Cost of goods sold (21,300 ) (24,312 ) Gross profit 4,363 2,465 Selling, general and administrative expenses (3,214 ) (3,077 ) Other operating income (loss), net (53 ) 1,705 Operating income 1,096 1,093 Interest expense (6 ) (1 ) Interest income 99 183 Other income (expenses), net (16 ) 637 Income before income taxes 1,173 1,912 Provision for income taxes (13 ) (1 ) Net income $ 1,160 $ 1,911 Basic earnings per common share $ 0.38 $ 0.63 Basic weighted average number of shares outstanding 3,037 3,056 Diluted earnings per common share $ 0.38 $ 0.63 Diluted weighted average number of shares outstanding 3,060 3,060 GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Amounts expressed in thousands of United States dollars) June 30, 2009 March 31, 2009 (unaudited) (audited) ASSETS Current assets: Cash and cash equivalents $ 19,128 $ 11,313 Time deposits - 4,411 Restricted cash 4,683 4,390 Available-for-sale investments 15,999 15,985 Accounts and bills receivable, net 25,724 18,438 Inventories 10,325 8,448 Prepaid expenses 156 264 Deposits and other assets 2,655 1,493 Legal claims receivable 5,090 5,100 Amount due from a related party 33 33 Amount due from a jointly-controlled entity 22 70 Convertible note - 5,599 Interest receivable - 504 Total current assets 83,815 76,048 Interests in jointly-controlled entities - - Property, plant and equipment, net 24,231 24,592 Land use rights, net 3,125 3,073 Deposits paid for purchase of property, plant and equipment 54 201 Total assets $ 111,225 $ 103,914 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Accounts and bills payable 12,407 7,963 Discounted bills 938 - Temporary receipts 693 717 Accrued salaries, allowances and other employee benefits 3,396 3,194 Accrual for loss contingencies 6,175 6,077 Other accrued liabilities 6,756 6,234 Income tax payable 5,447 5,501 Total current liabilities 35,812 29,686 Deferred tax liabilities 27 27 Total liabilities 35,839 29,713 Shareholders' equity: Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,227,064 shares issued and outstanding as of June 30 and March 31, 2009 129 129 Additional paid-in capital 84,267 84,266 Accumulated deficit (9,395 ) (10,555 ) Accumulated other comprehensive income 5,048 5,022 Less: Treasury stock, at cost, 189,587 and 189,387 shares as of June 30 and March 31, 2009 (4,663 ) (4,661 ) Total shareholders' equity 75,386 74,201 Total liabilities and shareholders' equity $ 111,225 $ 103,914 |
