Financial News


Coretronic Corporation Announces Fourth Quarter 2018 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the fourth quarter of 2018. For the fourth quarter ended December 31, 2018, Coretronic posted consolidated sales revenue of NT$14,414 million, drop 3.5% QoQ and 4% YoY, respectively. Consolidated gross margin for the quarter was 19.9%, decreased by 0.1% QoQ but increase by 1.3% compared with 18.6% in fourth quarter of 2017, benefited from product portfolio optimization. Operating income was NT$740 million, decrease 13.8% QoQ and 8.8% YoY, respectively. Net income was NT$706 million, representing a 4.3% decrease QoQ and a 13.4% drop YoY. Net income attributable to equity holders of the parent company was NT$698 million, a 3.6% increase QoQ and a 12% decrease YoY. The basic EPS* for the fourth quarter was NT$1.61, slightly grew compared to the previous quarter of NT$1.55.

For the fiscal year of 2018, Coretronic reported consolidated sales revenue of NT$55,673 million, up 5% YoY. Consolidated gross margin was 18.6%, increased by 1.5% compared with 17.1% in 2017, resulting from continuously improving operational performance and favorable exchange rate. Operating income totaled NT$2,302 million, up 33% YoY. Net income was reported at NT$2,128 million, up 25% YoY. Net income attributable to equity holders of the parent company was NT$2,020 million, a 15% increase YoY. The basic EPS* for 2018 was NT$4.65, which was also grew compared to NT$4.03 of 2017.

“The overall sales revenue of Energy Saving Business Group was NT$6,555 million in 4Q18, drop 5% QoQ and the overall shipment was 11.71 million units, representing 10% QoQ decrease. For the fiscal year of 2018, the sales revenue amounted to NT$25,744 million, drop 2% YoY and shipment was 47.6 million units, slightly increase YoY.” “Due to regular slow season and CNY holiday impact, we expect the overall shipments with more than 10% QoQ decrease in 1Q19.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. For future business development, Sarah indicate that facing the limited growth of the overall consumer market, only industrial control, automotive and PID/Signage fields have growth momentum. Coretronic have successfully developed LCM with touch module to 1st tier brand company for laptop applications by provide one stop solutions (in house integrate open cell, LGP, touch screen). We will continue to develop the core technologies of new edge-type of LGP, direct-type Light Guide Lens and special optical control diaphragm to develop high-value-value applications with thin, small, energy efficient, privacy peeking, and HDR features to approach automotive, industrial control, medical, gaming, smart home market, and to consolidate the leading position of backlight modules and LCD modules in PID to steady growth with the goal of pursuing higher profits and value.

“For 4Q18, the shipment of Visual Solutions products was 303K units, with 14% QoQ drop due to shipment decrease of traditional lamp projector, while the sales revenue was NT$4,815 million, representing an 8% QoQ drop, benefited from the shipment growth of high-end large venue products to lead the ASP with 7% QoQ growth. For the fiscal year of 2018, the shipment was 1,310K units and the sales revenue was NT$18,907 million, drop 2% and up 7% YoY respectively. “Coretronic has achieved the WW #1 market position in 4K UHD and SSI product lines in 2018, resulting from continue to make advancement into innovative fields of application like mass production the first smart 4K LED projector with voice recognition, the smart home 4K UST projector, higher brightness and high resolution 4K laser product, etc.. In addition, we also have been building actively on core technologies for key components and key modules to build the competitive barrier and maintain a leading position.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. SY Chen also estimates that the shipment in 1Q19 with more than 10% QoQ decrease due to regular slow season and CNY holiday impact.

In recent years, Visual Solutions Business Group of Coretronic has improved its overall operational performance through integration of innovative core technologies through operational optimization and intelligent production, and provided valuable differentiated projection and imaging solutions to customers with quality, scale and diversity, continuous to lead the growth trend of Visual Solutions Business Group. Look into 2019, SY points out that grounded on the core technology, Coretronic will continuously optimize the overall competitiveness of Visual Solutions products. “Following the trend of 4K resolution, Coretronic will release more 4K products with smart function, embedded system products and laser TV 4K model to enlarge our business scope and market share. We will also continuously optimize the laser products. The display platform that encompasses a full range of SSI+UST+ 4K+interactivity product lineups will be accomplished. Additionally, we will also strengthen intelligent connection capabilities for integration with different market requirements. Aims to build an industrial value chain platform and an intelligent business ecosystem with visual solutions products as the main axis.” said SY Chen. According to research report, the projector market will continue to grow till 2022. SY Chen also expects that the operation of the Visual Solutions Business Group will continue to grow in 2019.

Looking into the medium to long-term development strategy, Mr. Wade Chang, Chairman & CEO of Coretronic Corporation point out that 5G, AI and immersive experience upgrade are the main industry development trend of the CES 2019. The new trend of AI combined with IoT will play a key role in the business opportunities derived from the IoT. Therefore, based on existing two major business groups, Coretronic will move forward to the advanced technologies area such as "image recognition, AI and cloud premium service" and aim to enhance the overall operating performance of Coretronic Group.

* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares).