Financial News


Coretronic Corporation Announces Second Quarter 2018 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the second quarter of 2018. For the second quarter ended June 30, 2018, Coretronic posted consolidated sales revenue of NT$13,946 million, up 13% QoQ and 17% YoY, respectively. Consolidated gross margin for the quarter was 18.2%, increased by 2.2% and 1.0% compared with 16% in first quarter of 2018 and 17.2% in second quarter of 2017, benefited from product portfolio optimization. Operating income was NT$542 million, a significant increase of 239% QoQ and 93% YoY, respectively. Net income was NT$482 million, representing a 137% increase QoQ and a 98% up YoY. Net income attributable to equity holders of the parent company was NT$455 million, a 135% increase QoQ and a 75% increase YoY. The basic EPS* for the second quarter was NT$1.04.

For the first half of 2018, Coretronic reported consolidated sales revenue of NT$26,321 million, up 9% YoY. Consolidated gross margin was 17.2%, increased by 0.6% compared with 16.6% in the first half of 2017, resulting from continuously improving operational performance and better product portfolio. Operating income totaled NT$702 million, up 30% YoY. Net income was reported at NT$685 million, up 42% YoY. Net income attributable to equity holders of the parent company was NT$649 million, a 21% increase YoY. The basic EPS for the first half of this year was NT$1.49, which was also grew compared to the same period of last year.

In 2Q18, sales revenue reached NT$ 6,227 million and shipment was 11.52 million units for the Energy Saving products. Although the second quarter was a traditional slow-season, the overall sales revenue and shipments grew by 3% and 2% from the previous quarter respectively, thanks to more orders for high-end, large-size TV LCM business from EMS customers. For 1H of 2018, the sales revenue amounted to NT$12,280 million and shipment was 22.84 million units, slightly drop 2% and 3% respectively.” “Look into 3Q18, TV、Monitor shipment will with significantly growth due to peak-season, therefore, we expect the overall shipments with more than 10% QoQ growth in 3Q18.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. For future business development, Sarah points out that Coretronic will continue to develop the core technologies to provide high quality and diverse display products.

“For 2Q18, the shipment of Visual Solutions products was 334K units, with 5% QoQ growth and the sales revenue was NT$4,693 million, representing a 13% increase QoQ and a 19% up YoY, resulting from continuous growth in SSI products to drive the ASP increase by 8% QoQ. For 1H of 2018, the shipment was 653K units and the sales revenue was NT$8,863 million, up 6% and 16% YoY respectively, driven by demand from FIFA 2018, the continued growth of 4K and high-end product shipments. Coretronic expects the shipments in 3Q18 with significant grow over 2Q18 & 3Q17, contributed by continued demand from tender and product combination optimization together with 4K UHD, SSI and large venue products shipment.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. Regarding the development strategy of Visual Solutions products, SY points out that Coretronic will continuous focus on value-driven solutions and new applications to improve its product platforms such as 4K UHD, SSI solid-state light source, Education/Enterprise total solutions, AI smart design and Home/Entertainment solutions to continue to provide customers extremely impressive imagery experiences. “We expect the Visual Solutions business will continue to grow in 2018 resulting from continuous development of core technologies and new business to expanding customers and applications in different fields.” 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).