Coretronic Corporation Announces Second Quarter 2017 Results
Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the second quarter of 2017. For the second quarter ended June 30, 2017, Coretronic posted consolidated sales revenue of NT$11,932 million, drop 2% QoQ due to traditional slow season affected. Consolidated gross margin for the quarter was 17.2%, increased by 1.2% and 1.6% compared with 16% in first quarter of 2017 and 15.6% in second quarter of 2016. Operating income was NT$281 million, with 8% QoQ and 4% YoY growth, respectively. Net income was NT$243 million, up 2% QoQ and 5% YoY. Net income attributable to equity holders of the parent company was NT$260 million, drop 6% QoQ and 11% YoY. The basic EPS* for second quarter were NT$0.6.
For the first half of 2017, Coretronic reported consolidated sales revenue of NT$24,157 million, drop 12% YoY. Consolidated gross margin was 16.6%, increased by 1.4% compared with 15.2% in the first half of 2016 and the operating income totaled NT$541 million, up 15.6% YoY thanks to better product portfolio. Net income was reported at NT$482 million, drop 6.5% YoY, mainly due to the foreign exchange gains decrease NT$119 million (NT$49 million in 1H17 and NT$168 million in 1H16), resulting from more than 6% appreciation of the NT dollar against the US dollar during the first half of 2017. Net non-operating Income fell to NT$183 million accordingly. Net income attributable to equity holders of the parent company was NT$537 million with the basic EPS of NT$1.24 per common share.
“The overall sales revenue of Energy Saving Business Group was NT$6,464 million in 2Q17, drop 11% QoQ due to regular slow season impact. The overall shipment was 11.41 million units, representing 7% QoQ decrease. For 1H of 2017, affected by TV Open Cell shortage issue, the sales revenue amounted to NT$13,719 million and shipment was 23.63 million units, drop 19% and 13% respectively.” “Look into 3Q17, TV Open Cell shortage situation is expected to improve, thus, TV ODM Business and Solutions Business with significantly growth due to peak-season, therefore, we expect the overall shipments with more than 10% growth in 3Q17.” said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. For future business development, Sarah pointed out that Display industry will move towards more higher-end technology, 8K TV launched, 8K Signage products and 4K NB models which under develop will be launch in the near future while not only TV but Monitor and NB plan to implement HDR technology. “In order to pursuit higher profit and value targets, we will correspond to the needs of industrial technology development and continues cooperate with brand customers in the ODM and Solutions business, to provide components, sub-system and system solutions products for various applications together with one-stop manufacturing and global after-sales services.” said Sarah Lin.
“For 2Q17, the shipment of Visual Solutions products were 321K units, with 8% QoQ growth and the sales revenue was NT$3,933 million, up 7% QoQ. For 1H of 2017, the shipment was 618K units and the sales revenue was NT$7,610 million, up 11% and 2% YoY respectively, driven by continuous growth in embedded solutions new product and Laser projectors for the education market. Coretronic expects the visual solutions business continued to grow in 3Q17 traditional hot season, driven by increased demand for SSI products in China education market, new product launches on large venue projectors and continued roll out 4K UHD projectors.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. To enhance the overall competitive strength of visual solutions products, SY pointed out that Coretronic will integrate its leading technology, “Optics, Mechanics, Electronics, Thermal Management and Cloud Service”, to address market requirements to provide customer total solutions for various market segments (home entertainment, education, corporate, Digital signage and gaming). 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, drive visual solutions business continue to grow in 2017 and the future.
* Basic EPS was calculated based on the total weighted average outstanding shares of the balance sheet dated (434m shares)
