2019/10/29
Coretronic Corporation Announces Third Quarter 2019 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the third quarter of 2019. For the third quarter ended Sept. 30, 2019, Coretronic posted consolidated sales revenue of NT$12,990 million, up 14.3% QoQ and drop 13% YoY. Consolidated gross margin for the quarter was 18.5%, a decrease of 0.6% as compared with 19.1% in the previous quarter and drop by 1.5% over the same period last year, resulting from unfavorable product mix. Operating income was NT$496 million, a significant increase of 107% QoQ but drop 42% YoY, respectively. Net income was NT$479 million, representing a 117% increase QoQ and a 35% drop YoY. Net income attributable to equity holders of the parent company was NT$473 million, a significant increase of 142% QoQ but drop 30% YoY, respectively. The basic EPS* for the third quarter were NT$1.08.
For the first three quarter of 2019, Coretronic reported consolidated sales revenue of NT$35,627 million, drop 13.7% YoY, mainly affected by trade war disputes in the market, the global economic growth is sluggish and overall demand is weak. Consolidated gross margin was 18%, decreased by 0.2% compared with 18.2 % in the first three quarter of 2018. Operating income totaled NT$796 million, drop 49% YoY. Net income was reported at NT$801 million, drop 44% YoY. Net income attributable to equity holders of the parent company was NT$762 million, a 42% decrease YoY. The basic EPS* for the first three quarter of this year was NT$1.75, which was also decrease compared to the same period of last year.
“The third quarter is traditional hot season, thanks to more high-end and large-sized TV LCM EMS businesses from panel customers driving the ASP with 8% QoQ increase and NB application shipments returning, the overall sales revenue of Energy Saving Business Group was NT$6,967 million in 3Q19, a 30% increase QoQ. The overall shipment was 11.48 million units, up 21% QoQ. For first three quarter of 2019, the sales revenue amounted to NT$17,749 million and shipment was 31.02 million units, drop 4% and 14% respectively.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. “The fourth quarter is traditional slow season while customers pre-stocking in advance in third quarter in response to the tariffs increased due to trade war, therefore, the demand for traditional EMS backlight modules and ODM business will weaken and we expect the overall shipments will have a single-digit decline from the third quarter.” Look into the future, Sarah indicate that Energy Saving Product Business Group will continue to grasp key components and maintain new technology leadership, and expand the customer base of China and other system applications to provide differentiated design of various high-value displays to pursuing higher profits and value.
“For 3Q19, the shipment of Visual Solutions products was 255K units, with 34% QoQ increase and the sales revenue was NT$3,648 million, representing an 8% increase QoQ, mainly benefited from the rebound in demand for Lamp based projectors and the growth of embedded precision projection solutions. For the first three quarter of 2019, the shipment was 650K units, drop 35% YoY, resulting from the overall economic downturn, lack of sports events to stimulate consumption, faces the competition of large-size flat-panel displays, and the decline in demand for traditional low-end projectors were weaker than previous years. The sales revenue in first three quarter was NT$10,303 million, a 27% decrease YoY.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. For the fourth quarter, SY pointed out that the overall shipment is expected to grow by more than 10%. Driven by the continuous growth of SSI and large-venue high-end model, the overall operating performance will continue to grow. Looking forward to the future, SY stated that it is imperative to continue to enhance the overall competitiveness in terms of technology, manufacturing and integration to maintain competitive advantage. Visual Solutions Business Group will grasp key component technologies and actively connect new business with innovative technologies and intelligent solutions to gradually improve the growth momentum of the future.
* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares).
For the first three quarter of 2019, Coretronic reported consolidated sales revenue of NT$35,627 million, drop 13.7% YoY, mainly affected by trade war disputes in the market, the global economic growth is sluggish and overall demand is weak. Consolidated gross margin was 18%, decreased by 0.2% compared with 18.2 % in the first three quarter of 2018. Operating income totaled NT$796 million, drop 49% YoY. Net income was reported at NT$801 million, drop 44% YoY. Net income attributable to equity holders of the parent company was NT$762 million, a 42% decrease YoY. The basic EPS* for the first three quarter of this year was NT$1.75, which was also decrease compared to the same period of last year.
“The third quarter is traditional hot season, thanks to more high-end and large-sized TV LCM EMS businesses from panel customers driving the ASP with 8% QoQ increase and NB application shipments returning, the overall sales revenue of Energy Saving Business Group was NT$6,967 million in 3Q19, a 30% increase QoQ. The overall shipment was 11.48 million units, up 21% QoQ. For first three quarter of 2019, the sales revenue amounted to NT$17,749 million and shipment was 31.02 million units, drop 4% and 14% respectively.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. “The fourth quarter is traditional slow season while customers pre-stocking in advance in third quarter in response to the tariffs increased due to trade war, therefore, the demand for traditional EMS backlight modules and ODM business will weaken and we expect the overall shipments will have a single-digit decline from the third quarter.” Look into the future, Sarah indicate that Energy Saving Product Business Group will continue to grasp key components and maintain new technology leadership, and expand the customer base of China and other system applications to provide differentiated design of various high-value displays to pursuing higher profits and value.
“For 3Q19, the shipment of Visual Solutions products was 255K units, with 34% QoQ increase and the sales revenue was NT$3,648 million, representing an 8% increase QoQ, mainly benefited from the rebound in demand for Lamp based projectors and the growth of embedded precision projection solutions. For the first three quarter of 2019, the shipment was 650K units, drop 35% YoY, resulting from the overall economic downturn, lack of sports events to stimulate consumption, faces the competition of large-size flat-panel displays, and the decline in demand for traditional low-end projectors were weaker than previous years. The sales revenue in first three quarter was NT$10,303 million, a 27% decrease YoY.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. For the fourth quarter, SY pointed out that the overall shipment is expected to grow by more than 10%. Driven by the continuous growth of SSI and large-venue high-end model, the overall operating performance will continue to grow. Looking forward to the future, SY stated that it is imperative to continue to enhance the overall competitiveness in terms of technology, manufacturing and integration to maintain competitive advantage. Visual Solutions Business Group will grasp key component technologies and actively connect new business with innovative technologies and intelligent solutions to gradually improve the growth momentum of the future.
* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares).
