Coretronic Corporation Announces Third Quarter 2017 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the third quarter of 2017. For the third quarter ended Sept. 30, 2017, Coretronic posted consolidated sales revenue of NT$13,893 million, up 16.4% QoQ thanks to the traditional hot season affected and new product launched. Consolidated gross margin for the quarter was 16.5%, affected by exchange rate fluctuations, decreased by 0.7% QoQ and 0.2% YoY correspondingly. Operating income was NT$378 million with a net income of NT$408 million, up 34% and 68% QoQ, respectively. Net income attributable to equity holders of the parent company was NT$418 million, with 61% QoQ growth. The basic EPS* for third quarter were NT$0.96.
For the first three quarters of 2017, Coretronic reported consolidated sales revenue of NT$38,050 million, drop 9.9% YoY. Consolidated gross margin was 16.5%, increased by 0.8% compared with 15.7% in the same period last year and the operating income totaled NT$919 million, drop 17% YoY. Net income was reported at NT$890 million, drop 18% YoY, mainly due to the foreign exchange gains decrease NT$119 million, resulting from the appreciation of the NT dollar and RMB against the US dollar during the first three quarters of 2017. Net non-operating income fell to NT$343 million accordingly. Net income attributable to equity holders of the parent company was NT$955 million with the basic EPS of NT$2.2 per common share.
“The overall sales revenue of Energy Saving Business Group was NT$7,631 million in 3Q17, up18% QoQ due to TV ODM and Solutions Business with significantly growth in the peak-season. The overall shipment was 12.85 million units, representing 13% QoQ increase. For the first three quarter of 2017, the sales revenue amounted to NT$21,350 million and shipment was 36.48 million units, drop 17% and 14% respectively.” “Look into 4Q17, although the TV ODM Business and Solutions Business shipment is expected to grow slightly, but the EMS BLU business demand is weak due to traditional slow season impact. As a result, we expect the overall shipments will drop around 10% in 4Q17.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. For future business development, Sarah pointed out that in order to satisfy the requirements of high-end display products, Energy Saving Product Business Group will continue to enhance the competitiveness and the value of new products via the innovative technology while gaining more business in automotive, industrial, PID/Signage market. “We will keep the intention to provide innovative display system solutions to pursuit higher profit and value targets and steady growth.” said Sarah Lin.
“For 3Q17, the shipment of Visual Solutions products were 332K units, with 3% QoQ growth and the sales revenue was NT$4,765 million, up 21% QoQ, resulting from shipment increase for SSI products in China education market, new product launched of Large Venue projectors and continued roll out 4K UHD (Ultra HD) projectors. For the first three quarter of 2017, the shipment was 950K units and the sales revenue was NT$12,375 million, up 6% and 1% YoY respectively. “Coretronic expects the visual solutions business continues to grow in 4Q17” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. He also announced that the continuous technology innovation has led Coretronic won Hsinchu Science Park Innovative Product Award three years consecutively. The winning innovation products including “Laser Ultra-Wide Touch System” in 2015, “Image Blending Touch System” in 2016 and “Immersive Curve Touch System “ in 2017. To enhance the overall competitive strength of visual solutions products, SY pointed out that Coretronic will integrate its leading technology, to develop high value-added products and visual solutions. At the same time, Coretronic will accelerate the PID, Cloud-Based Big Data analysis, Intelligent Interaction and other intelligent service program platform development, to expand the growth momentum and drive visual solutions business continue to grow in the future.
* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares)
