AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced its unaudited results for the first quarter of 2010(1). For the first quarter ended March 31, 2010, AUO posted consolidated revenue of NT$111,564 million (US$3,516 million)(2), down 2.9% from the previous quarter. Gross profit improved 62.8% quarter-over-quarter to NT$14,270 million (US$450 million), representing a gross margin of 12.8%. Operating income, on the other hand, reached NT$8,129 million (US$256 million), with an impressive quarterly growth rate of 327.9% and an operating margin of 7.3%. Consequently, AUO's net income came in at NT$7,274 million (US$229 million), attributable to equity holders of the parent company at NT$7,103 million (US$224 million), or basic EPS of NT$0.8 per common share (US$0.25 per ADR) for the first quarter of 2010.
1Q2010 Result Highlights
AUO reported the following unaudited consolidated results for the first quarter of 2010:
For the first quarter, AUO's large-sized panels totaled 27.22 million units, down 0.6% quarter-over-quarter but up significantly 107.1% year-over-year. In terms of small- and medium-sized panels, the shipment was over 56.99 million units, down 5.2% quarter-over-quarter but up 32.7% year-over-year.
“Although the first quarter was the traditional low season, we have seen relatively stable panel prices thanks to recovering global demand and healthy inventory levels in the channel, “ said Mr. Andy Yang, Chief Financial Officer of AUO. “As a result, the Company's average selling price per square meter dropped by merely 1.6% from the previous quarter. In addition, the management team has taken a proactive approach toward product mix improvements. On rising high-end product mix and the design efforts which helped lower our costs effectively, our gross margin picked up from last quarter's 7.6% to 12.8% this quarter. Meanwhile, our operating margin also increased considerably from 1.7% last quarter to 7.3%. Being noteworthy, our EBITDA margin expanded to 27.6% for the first quarter.”
In view of the positive outlook for the demand in 2010, the total capacity of AUO's 7.5 generation fabs is planned to increase from 100,000 sheets per month in the first quarter of 2010 to 120,000 sheets by the end of the second quarter, aiming at meeting the growing demands in the emerging markets and seizing the opportunities brought by recovery of the European and American markets.
(1) All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan (“ROC GAAP”)
(2) Amounts converted by an exchange rate of NTD31.73:USD1 based on Federal Reserve Bank of New York, USA as of March 31, 2010.
(3) EBITDA=Operating Income +D&A