Financial News


Coretronic Corporation Announces Third Quarter 2018 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the third quarter of 2018. For the third quarter ended September 30, 2018, Coretronic posted consolidated sales revenue of NT$14,938 million, up 7.1% QoQ and 7.5% YoY, respectively. Consolidated gross margin for the quarter was 20%, increased by 1.8% and 3.5% compared with 18.2% in second quarter of 2018 and 16.5% in third quarter of 2017, benefited from favorable exchange rate and product portfolio optimization. Operating income was NT$859 million, a significant increase of 59% QoQ and 127% YoY, respectively. Net income was NT$737 million, representing a 53% increase QoQ and a 81% up YoY. Net income attributable to equity holders of the parent company was NT$674 million, a 48% increase QoQ and a 61% increase YoY. The basic EPS* for the third quarter was NT$1.55.

For the first three quarter of 2018, Coretronic reported consolidated sales revenue of NT$41,259 million, up 8.4% YoY. Consolidated gross margin was 18.2%, increased by 1.7% compared with 16.5% in the first three quarter of 2017, resulting from continuously improving operational performance, favorable exchange rate and better product portfolio. Operating income totaled NT$1,561 million, up 70% YoY. Net income was reported at NT$1,422 million, up 60% YoY. Net income attributable to equity holders of the parent company was NT$1,322 million, a 38% increase YoY. The basic EPS for the first three quarter of this year was NT$3.04, which was also grew compared to the same period of last year.

In 3Q18, sales revenue reached NT$ 6,908 million and shipment was 13.07 million units for the Energy Saving products, up 11% QoQ and 13.5% YoY, respectively, thanks to more large size PID LCM and NB MIB business from panel customers in peak season. For the first three quarter of 2018, the sales revenue amounted to NT$19,188 million and shipment was 35.91 million units, slightly drop 2% and 1% respectively.” “Look into 4Q18, the EMS BLU business demand is weak due to traditional slow season impact thus we expect the overall shipments will drop single digit in 4Q18, but due to the proportion of PID and NB ODM products shipment increased will drive the ASP increase, therefore, the overall operating performance of Energy Saving products in the fourth quarter will be conduce.” 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, Coretronic will continue to develop the core technologies and intelligent automated production to provide differentiated design of various high-value display products to approach automotive, industrial control, medical, gaming, smart home and PID/Signage markets, and to consolidate existing customers, expand China and other system application customer base.

“For 3Q18, the shipment of Visual Solutions products was 353K units, with 6% QoQ growth and the sales revenue was NT$5,229 million, representing an 11% increase QoQ and a 10% up YoY, resulting from continuous growth in 4H UHD, SSI and high-end large venue products. For the first three quarter of 2018, the shipment was 1,006K units and the sales revenue was NT$14,092 million, up 6% and 14% YoY respectively. “Coretronic expects the shipments in 4Q18 will similar with 3Q18, however, due to the increase in shipments of high-end models, the overall operating performance in the fourth quarter will continue to grow.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. 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. Looking to the future, SY points out that enhancing corporate value is our core philosophy, thus, we will continues grasp the key component technologies to refining the core competencies to maintain competitive advantage while actively innovation and breakthrough to correspond the market trends in consumer, business, smart home, entertainment, etc., to consolidate the trend of continued growth in the overall operation in the future.

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