2015/10/30
Coretronic Corporation Announces Third Quarter 2015 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the third quarter of 2015. For the third quarter ended Sept. 30, 2015, Coretronic posted consolidated sales revenue of NT$18,336 million, up 8.2% QoQ and drop 15.4% YoY respectively. Operating income was reported at NT$895 million with a net income of NT$710 million. Net income attributable to equity holders of the parent company was NT$689 million with the basic EPS* of NT$1.27 per common share. For the first three quarters of 2015, Coretronic reported consolidated sales revenue of NT$51,082 million and the operating income totaled NT$1,299 million with a net income of NT$1,330 million. Net income attributable to equity holders of the parent company was NT$1,297 million with the basic EPS of NT$2.39 per common share.
“For 3Q15, the BLU shipment was 17.91 million units, drop 9% QoQ, mainly due to weak demand from NB and Tablet models. The BLU revenue amounted to NT$11,634 million, up 7% QoQ, thanks to the strong demand from large size TV and Monitor models, which up 86% and 6% QoQ respectively. For the first three quarters of 2015, the BLU shipment was 56 million units and revenue amounted to NT$32,709 million, drop 19% and 25% respectively.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. “Look into 4Q15, the demand of TV、Monitor and Tablet models will gradually decline in 4Q15 due to seasonal factors and the NB models shipment will slightly increase QoQ benefit from the restocking demand. Therefore, Coretronic expect the overall BLU shipment will drop 10%~15% QoQ.” said Sarah Lin.
As regard to recent employees streamlining in Taiwan plants and discontinued production of Coretronic (Nanjing) starting from Oct. 22, 2015, Sarah Lin further explain employees streamlining in Taiwan plants were to response customer’s market demand, adjust production base and the overall operating performance considerations. Part of production line in Chu-Nan plant will move to Tai-Nan plant and will gradually reduce the night shift production in Tai-Nan plant also. Furthermore, with the decline in the tablet market, Coretronic (Nanjing), a base of tablet production, has decided to move the production line to Suzhou plant in order to integrate resources and management efficiency. In 2014 and 2015, Coretronic has purchased two more plants in Wujiang area to provide the small-size vertical integration of one-stop production and TV BLU/LCM /SI capacity to meet the increasing demand from customers. This definitely proves Coretronic will become much more competitive and active in improving the production efficiency and the quality of the products to meet customers’ needs.
“For 3Q15, the shipment of Projector products was 351K units and the sales revenue was NT$4,706 million, up 27% and 29% QoQ respectively. For the first three quarters of 2015, Projector shipment was 855K units and revenue amounted to NT$11,427 million, drop 3% and up 2% YoY respectively. This was resulting from increase contributed by new product launch. The sales volume of high-end large venue projector and laser projector has a positive contribution to the Projector business as well. ” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. Look into 4Q15, SY Chen points out that the forecast shipment is conservative due to seasonality and customer inventory control. Therefore, Coretronic expects the monthly shipment quantity is 90K~100K units in 4Q15 and total shipments in 2015 will be similar to last year.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (543m shares in 3Q15).
“For 3Q15, the BLU shipment was 17.91 million units, drop 9% QoQ, mainly due to weak demand from NB and Tablet models. The BLU revenue amounted to NT$11,634 million, up 7% QoQ, thanks to the strong demand from large size TV and Monitor models, which up 86% and 6% QoQ respectively. For the first three quarters of 2015, the BLU shipment was 56 million units and revenue amounted to NT$32,709 million, drop 19% and 25% respectively.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. “Look into 4Q15, the demand of TV、Monitor and Tablet models will gradually decline in 4Q15 due to seasonal factors and the NB models shipment will slightly increase QoQ benefit from the restocking demand. Therefore, Coretronic expect the overall BLU shipment will drop 10%~15% QoQ.” said Sarah Lin.
As regard to recent employees streamlining in Taiwan plants and discontinued production of Coretronic (Nanjing) starting from Oct. 22, 2015, Sarah Lin further explain employees streamlining in Taiwan plants were to response customer’s market demand, adjust production base and the overall operating performance considerations. Part of production line in Chu-Nan plant will move to Tai-Nan plant and will gradually reduce the night shift production in Tai-Nan plant also. Furthermore, with the decline in the tablet market, Coretronic (Nanjing), a base of tablet production, has decided to move the production line to Suzhou plant in order to integrate resources and management efficiency. In 2014 and 2015, Coretronic has purchased two more plants in Wujiang area to provide the small-size vertical integration of one-stop production and TV BLU/LCM /SI capacity to meet the increasing demand from customers. This definitely proves Coretronic will become much more competitive and active in improving the production efficiency and the quality of the products to meet customers’ needs.
“For 3Q15, the shipment of Projector products was 351K units and the sales revenue was NT$4,706 million, up 27% and 29% QoQ respectively. For the first three quarters of 2015, Projector shipment was 855K units and revenue amounted to NT$11,427 million, drop 3% and up 2% YoY respectively. This was resulting from increase contributed by new product launch. The sales volume of high-end large venue projector and laser projector has a positive contribution to the Projector business as well. ” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. Look into 4Q15, SY Chen points out that the forecast shipment is conservative due to seasonality and customer inventory control. Therefore, Coretronic expects the monthly shipment quantity is 90K~100K units in 4Q15 and total shipments in 2015 will be similar to last year.
* Basic EPS was calculated based on the total weighted average outstanding shares of each quarter (543m shares in 3Q15).
