Financial News

2019/04/30

Coretronic Corporation Announces First Quarter 2019 Results

Hsinchu, Taiwan – Coretronic Corporation (5371.TW) today announced its financial results for the first quarter of 2019. For the first quarter ended March 31, 2019, Coretronic posted consolidated sales revenue of NT$11,274 million, drop 8.9% YoY and 21.8% QoQ resulting from weak demand in the traditional slow season and CNY holiday impact. Consolidated gross margin for the quarter was 16.3%, an increase of 0.3% over the same period last year but decreased by 3.6% as compared with 19.9% in the previous quarter, due to unfavorable product mix. Operating income was NT$59 million, with 63% YoY decline. Net income was NT$101 million and net income attributable to equity holders of the parent company was NT$94 million, drop 50% & 51% YoY respectively. The basic EPS* for the first quarter were NT$0.22.

“The overall shipment of Energy Saving Business Group was 10.01 million units, drop 14.5% QoQ due to regular slow season and CNY holiday impact. The overall sales revenue was NT$5,432 million in 1Q19, a 14% decrease QoQ. Compared with 1Q18, the ASP increased by 5% due to the shipments increase of ODM NB models, thus, although the shipments decreased by 11.4% but revenues only with 7% decrease YoY. ”said Ms. Sarah Lin, President of Energy Saving Product Business Group of Coretronic. “The second quarter remains the traditional slow season but thanks to more high-end and large-sized TV LCM EMS businesses from panel customers, overall Energy Saving product shipments are expected to decline slightly.” Look into 2019, Sarah indicate that in response to the ultra-thin, narrow edged, high-resolution, and energy-saving displays on the market, Coretronic will continued to develop its core technology of optical components, display technology, system integration technology to enhance the company's overall product competitiveness. At the same time, the overall manufacturing capacity will be continuously enhanced by invest in the automation equipment and talents for intelligent manufacturing. With high-quality technology and manufacturing efficiency, Energy Saving Product Business Group will 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.

“Due to the decline in demand for traditional lamp based projectors, especially the low-end models were weaker than previous years, the shipment of Visual Solutions products in 1Q19 were 205K units, drop 36% YoY and the sales revenue was NT$3,281 million, a 21% decrease YoY, less than the reduction in shipments was major resulting from more shipments of SSI solid-state light sources and high-end models in 1Q19 and led the ASP increased by 22.5% YoY. Coretronic expects the shipments in 2Q19 will similar with 1Q19 due to seasonal factor.” said Mr. SY Chen, President of Visual Solutions Business Group of Coretronic. Regarding the demand-slow in 1H19, SY pointed out that the peak season and growth momentum of Visual Solutions products are mainly in the second half of the year. Coretronic will continuously optimize the overall competitiveness of Visual Solutions products and integrate the core technologies and innovative solutions of visual solutions products to expand the market, and use innovative technologies to approach new businesses and new customers, and gradually rise the growth momentum of the future. “Due to the continuous expansion of core technologies and new businesses, it is expected that the overall operation of the Visual Solutions Business Group will continue to grow in 2019.” said SY Chen.

Looking into the medium to long-term development strategy, Mr. Wade Chang, Chairman & CEO of Coretronic Corporation point out that not affected by short-term profit changes, Coretronic will continue to strengthen investment in new industries like Cloud Services/Smart Robots/MR, and aim to become a world-class leader in these new industries.

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