2019/07/30
Coretronic Corporation Announces Second Quarter 2019 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the second quarter of 2019. For the second quarter ended June 30, 2019, Coretronic posted consolidated sales revenue of NT$11,362 million, up 1% QoQ and drop 18.5% YoY. Consolidated gross margin for the quarter was 19.1%, an increase of 2.8% as compared with 16.3% in the previous quarter and increased by 0.9% over the same period last year, benefited from product portfolio optimization. Operating income was NT$240 million, a significant increase of 306% QoQ but drop 56% YoY, respectively. Net income was NT$221 million, representing a 119% increase QoQ and a 54% drop YoY. Net income attributable to equity holders of the parent company was NT$195 million, up 107% QoQ but drop 57% YoY, respectively. The basic EPS* for the second quarter were NT$0.45.
For the first half of 2019, Coretronic reported consolidated sales revenue of NT$22,636 million, drop 14% YoY, affected by traditional slow season and the unfavorable over political and economic situation. Consolidated gross margin was 17.7%, increased by 0.5% compared with 17.2 % in the first half of 2018, resulting from better product portfolio. Operating income totaled NT$299 million, drop 57% YoY. Net income was reported at NT$322 million, drop 53% YoY. Net income attributable to equity holders of the parent company was NT$289 million, a 55% decrease YoY. The basic EPS for the first half of this year was NT$0.67, which was also decrease compared to the same period of last year.
“The overall shipment of Energy Saving Business Group was 9.52 million units, drop 5% QoQ due to regular slow season impact. The overall sales revenue was NT$5,350 million in 2Q19, a 1.5% decrease QoQ. For 1H of 2019, the sales revenue amounted to NT$10,782 million and shipment was 19.54 million units, drop 9% and 14% respectively.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. “The third quarter is traditional hot season, thanks to more high-end and large-sized TV LCM EMS businesses from panel customers and NB application shipments returning, overall Energy Saving product shipments are expected to grow by more than 10% compared with the second quarter.”Look into 2019, Sarah indicate that in different application fields such as automotive, industrial control, medical, gaming, smart home and PID display applications, leading and differentiated display technologies are the key to success. Therefore, the Energy Saving Product Business Group will continue to develop its core technology, display technology, system integration technology, etc. of optical components, and integrate TFT panels, systems, and software into customized display solutions to enhance overall product competitiveness to steady growth with the goal of pursuing higher profits and value.
“For 2Q19, the shipment of Visual Solutions products was 190K units, with 7% QoQ drop and the sales revenue was NT$3,374 million, representing a 3% increase QoQ, mainly benefited from the increase in the proportion of SSI solid-state light sources and educational model shipments to drive the ASP increase by 11% QoQ. For 1H of 2019, the shipment was 395K units, drop 40% YoY, resulting from no sports events this year and the decline in demand for traditional lamp based projectors, especially the low-end models were weaker than previous years. The sales revenue in 1H19 was NT$6,655 million, a 25% decrease YoY. ASP however increased by 24% YoY mainly from SSI and high-end models have higher proportion of shipments in 1H19.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. Looking into 2H19, SY pointed out that the second half of the year is the traditional peak season for Visual Solutions products. The overall demand will pick up, especially driven by the continued growth of SSI, large-venue high-end engineering model and embedded precision projection solutions, the operation performance will grow quarter by quarter. SY also stated that although the slowdown in the first half of the year has affected the operating performance, Coretronic will continue to enhance its overall competitiveness in terms of technology, manufacturing and integration to expand its value boundaries and correspond to new businesses and new customers and expand the application market with innovative technologies and intelligent solutions, 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 half of 2019, Coretronic reported consolidated sales revenue of NT$22,636 million, drop 14% YoY, affected by traditional slow season and the unfavorable over political and economic situation. Consolidated gross margin was 17.7%, increased by 0.5% compared with 17.2 % in the first half of 2018, resulting from better product portfolio. Operating income totaled NT$299 million, drop 57% YoY. Net income was reported at NT$322 million, drop 53% YoY. Net income attributable to equity holders of the parent company was NT$289 million, a 55% decrease YoY. The basic EPS for the first half of this year was NT$0.67, which was also decrease compared to the same period of last year.
“The overall shipment of Energy Saving Business Group was 9.52 million units, drop 5% QoQ due to regular slow season impact. The overall sales revenue was NT$5,350 million in 2Q19, a 1.5% decrease QoQ. For 1H of 2019, the sales revenue amounted to NT$10,782 million and shipment was 19.54 million units, drop 9% and 14% respectively.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. “The third quarter is traditional hot season, thanks to more high-end and large-sized TV LCM EMS businesses from panel customers and NB application shipments returning, overall Energy Saving product shipments are expected to grow by more than 10% compared with the second quarter.”Look into 2019, Sarah indicate that in different application fields such as automotive, industrial control, medical, gaming, smart home and PID display applications, leading and differentiated display technologies are the key to success. Therefore, the Energy Saving Product Business Group will continue to develop its core technology, display technology, system integration technology, etc. of optical components, and integrate TFT panels, systems, and software into customized display solutions to enhance overall product competitiveness to steady growth with the goal of pursuing higher profits and value.
“For 2Q19, the shipment of Visual Solutions products was 190K units, with 7% QoQ drop and the sales revenue was NT$3,374 million, representing a 3% increase QoQ, mainly benefited from the increase in the proportion of SSI solid-state light sources and educational model shipments to drive the ASP increase by 11% QoQ. For 1H of 2019, the shipment was 395K units, drop 40% YoY, resulting from no sports events this year and the decline in demand for traditional lamp based projectors, especially the low-end models were weaker than previous years. The sales revenue in 1H19 was NT$6,655 million, a 25% decrease YoY. ASP however increased by 24% YoY mainly from SSI and high-end models have higher proportion of shipments in 1H19.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. Looking into 2H19, SY pointed out that the second half of the year is the traditional peak season for Visual Solutions products. The overall demand will pick up, especially driven by the continued growth of SSI, large-venue high-end engineering model and embedded precision projection solutions, the operation performance will grow quarter by quarter. SY also stated that although the slowdown in the first half of the year has affected the operating performance, Coretronic will continue to enhance its overall competitiveness in terms of technology, manufacturing and integration to expand its value boundaries and correspond to new businesses and new customers and expand the application market with innovative technologies and intelligent solutions, 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).
