Coretronic Corporation Announces First Quarter 2017 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the first quarter of 2017. For the first quarter ended March 31, 2017, Coretronic posted consolidated sales revenue of NT$12,226 million, drop 17.5% QoQ due to traditional slow season affected. Consolidated gross margin for the quarter was 16.01%, increased by 1.16% compared with 14.85% in first quarter of 2016. Operating income was NT$260 million, with 31.8% YoY growth. Net income was NT$238 million, representing a 15.7% decrease YoY, mainly due to the foreign exchange gains decrease NT$116 million (NT$16 million in 1Q17 and NT$132 million in 1Q16), resulting from more than 6% appreciation of the NT dollar against the US dollar during the first quarter. Net non-operating Income fell to NT$84 million accordingly. Net income attributable to equity holders of the parent company was NT$277 million, drop 13.9% YoY. The basic EPS* for first quarter were NT$0.64.
“The overall sales revenue of Energy Saving Business Group was NT$7,256 million in 1Q17, drop 11% QoQ due to regular slow season and CNY holiday impact. The overall shipment was 12.22 million units, representing 17% QoQ decrease. “Due to seasonality, the EMS demand from LCD panel manufacturers will be slow, therefore, we expect the overall shipments with around 10% drop in 2Q17. Look into 2017, in order to pursuit higher profit and value targets, we will maintain a highly flexible business model to provide components, sub-system and system solutions products with one-stop manufacturing to enhance production efficiency and product quality. Besides, using the core technology to corresponding to market trends like ultra-slim, ultra-seamless and free form stitching to develop signage display products, and actively expand new customers. We expect the overall operating performance of Energy Saving Business Group in 2017 with steady growth.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic.
“For 1Q17, the shipment of Visual Solutions products were 296K units, with 22% YoY growth and the sales revenue was NT$3,677 million, up 9% YoY driven by continuous growth in SSI products, Large Venue and embedded solutions new product mass production. Coretronic expects the shipments in 2Q17 will grow over 1Q17 & 2Q16, driven by continued growth in embedded solutions and SSI products.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. Regarding the development strategy of visual solutions products, SY pointed out that Coretronic will continuous develop mid- to high-end products for the mainstream projection market and build up a complete ecosystem grounded on Laser projection platforms, enhanced integration of application software, smart connection and wireless connectivity. This will allow us to provide immersive display total solutions for various market segments. By delivering reliable, differentiated products and solutions to expand niche market opportunities in the commercial large venue segment to enhance the overall competitiveness and create value. “We expect the visual solutions business to grow quarter by quarter in 2017 and second half operation performance will be better than the 1H17 and 2H16.” said SY Chen, President of Visual Solutions Business Group of Coretronic.
* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares).
