Coretronic Corporation Announces Fourth Quarter 2016 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the fourth quarter of 2016. For the fourth quarter ended Dec. 31, 2016, Coretronic posted consolidated sales revenue of NT$14,811 million, up 0.2% QoQ. Benefited from the continued growth in the high-end Projection products and optimized product mix of energy-saving products drove the GM rate up to 19.5% from 16.7% in previous quarter. Operating income was reported at NT$864 million with a net income of NT$740 million, up 35.2% and 29.5% QoQ respectively. Net income attributable to equity holders of the parent company was NT$751 million, up 25.2% QoQ and 23.5% YoY. The basic EPS* for fourth quarter were NT$1.73.
For the fiscal year of 2016, Coretronic reported consolidated sales revenue of NT$57,058 million and the operating income totaled NT$1,972 million with a net income of NT$1,826 million, drop 2% and 7% YoY respectively. Net income attributable to equity holders of the parent company was NT$1,965 million with the basic EPS* of NT$4.52 calculated on the basis of Dec. 31, 2016 outstanding shares.
Although the consolidated sales revenue dropped 16% YoY, the overall profit had a 3% growth as compared with 2015, thanks to the two major business groups’ constantly in technology innovation and product integration on the establishment of global competitiveness, and continued business model transformation, with lean production to enhance efficiency and product quality, so that the GM rate increase 2.9% to 16.7% in 2016, compared with 13.8% in 2015. “Coretronic will return to the original intention of entrepreneurship to provide innovative display system solutions to enhance the company's value, no longer blindly pursuit of revenue and shipments growth”, said Mr. Wade Chang, Chairman & CEO of Coretronic Corporation in 4Q15 Investor Conference. After one year’s adjustment and implementation, the result of 2016 have been initially verified the success of this transition strategy.
“The overall sales revenue of Energy Saving Business Group was NT$8,157 million in 4Q16, drop 6% QoQ. The overall shipment was 14.73 million units, representing 5% QoQ decrease. For the fiscal year of 2016, the sales revenue amounted to NT$33,855 million and shipment was 57.35 million units, drop 26% and 20% YoY respectively. Although the revenue and shipments declined YoY, benefited from continues mass production of customization new products to promote product mix optimization, the overall operating performance of Energy Saving Business Group was still better than 2015 in 2016.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic.
“Due to regular slow season and CNY holiday impact, we expect the overall shipments with 10% QoQ decrease in 1Q17. Look into 2017, in addition to pure backlight module shipments and the semi-system design and manufacture for Tablet/NB and TV applications, the high-value added advanced components like ultra-slim glass light guide plate, LCD display module, free form backlight module, etc. can also be integrated with touch modules, institutional design, electronic solutions, etc., to provide a complete and multi-integrated customization display solution for customers. The overall operation performance will grow quarter by quarter in 2017.” said Sarah Lin.
“For 4Q16, the shipment of Visual Solutions products was 321K units, drop 7% QoQ and the sales revenue was NT$4,737 million, similar with 3Q16 driven by continuous growth in high-end large venue, home cinema, educations segment. For the fiscal year of 2016, the shipment was 1,221K units and revenue amounted to NT$16,938 million, up 8% and 10% YoY respectively.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. “In continuation of the 2015 business initiatives, we had notable progress in upstream and downstream business development in 2016, where our optical engine module business for special applications and total solution system business gained market momentum. Coretronic expects the shipments in 1Q17 will grow over 1Q16.”
Coretronic will further extend our strength by including 4K and solid-state illumination products into the overall portfolio on mainstream projection product business in addition to developing mid- to high-rand products. As to LED products, our new engine module business has had preliminary achievements. We aim to extend such business model to different market segments, thereby transcending traditional boundaries of projection applications. For wearable display business, we have leveraged our competitive strengths in designing optical modules and systems, which will be conducive to business development in this industry. With an aim to address market requirements and pain points and based on our core competence, we plan to build up a complete ecosystem grounded on Laser display platforms, which will see enhanced integration of application software, smart connection and wireless connectivity. This will allow us to provide immersive display total solutions for various market segments (education, corporate, home, digital signage and gaming). By delivering reliable, differentiated products and solutions, we aim to elevate the value created for end users and partners and to expand niche market opportunities in the commercial large venue segment. “ We expect the visual solutions business will continue to grow.” said SY Chen, President of Visual
* Basic EPS was calculated based on the outstanding shares of the balance sheet date (434m shares).
