AU Optronics Corp. Reports 2Q2010 Financial Results

USA - English

• USA - English

HSINCHU, Taiwan, July 28 /PRNewswire-Asia-FirstCall/ -- AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investors conference and announced its unaudited results for the second quarter of 2010(1).

For the second quarter ended June 30, 2010, AUO posted consolidated revenue of NT$128,586 million (US$3,985 million)(2), up 15.3% from the previous quarter. Gross profit improved 42.4% quarter-over-quarter to NT$20,324 million (US$630 million), while operating profit grew 62.6% quarter-over-quarter to NT$13,215 million (US$410 million). AUO's net income came in at NT$11,246 million (US$348 million), up 54.6% quarter-over-quarter. Net Income attributable to equity holders of the parent company was NT$10,957 million (US$340 million), with basic EPS of NT$1.24 per common share (US$0.38 per ADR).

For the first half of 2010, AUO reported consolidated revenues of NT$240,150 million (US$7,442 million), with net income of NT$18,520 million (US$574 million) or basic EPS of NT$2.05 per common share (US$0.63 per ADR).

2Q2010 Result Highlights

AUO reported the following unaudited consolidated highlighted results for the second quarter of 2010:

    -- Revenue of NT$128,586 million, up 15.3% quarter-over-quarter
    -- Net income of NT$11,246 million
    -- Basic EPS of NT$1.24 per common share
    -- Gross margin of 15.8%
    -- Operating margin of 10.3%
    -- EBITDA(3) margin of 27.5%

For the second quarter, AUO's large-sized panels reached 29.62 million units, up 8.8% quarter-over-quarter and 32.2% year-over-year. Shipments of small- and medium-sized panels exceeded 55.43 million units, down 2.7% quarter-over-quarter and 8.9% year-over-year. For the first half of 2010, AUO's large-sized panels totaled 56.84 million units and small- and medium-sized panels exceeded 112.42 million units.

"AUO's second quarter results were generally in line with our guidance set in the Investor Conference on April 22," said Mr. Andy Yang, Chief Financial Officer of AUO. "Thanks to a better product mix, growing adoption rates of LED backlights in high-end panels and nearly full capacity utilization rates, our gross margin increased from last quarter's 12.8% to 15.8% this quarter. Operating margin also increased from 7.3% last quarter to 10.3%, while EBITDA margin maintained at 27.5%. Starting from last year, AUO has been actively forging strategic alliances with our customers. These alliances are bringing synergies to us. By working closely with clients and involving early in the design stages under a win-win interactive mode, we are able to better understand the end demand, especially for the high-end products, and timely respond to the market trends."

AUO has officially acquired the G4.5 fab of Toshiba Mobile Display Co., Ltd. ("TMD") in Singapore, effective on July 1. This fab will bring in approximately 45,000 sheets of LTPS (low temperature polysilicon) capacity per month, which enables AUO to better serve its customers in the high-end display markets. In the meantime, AUO will continue to strengthen its alliances with customers and adjust its product portfolio in order to optimize values created by capacity utilization.

(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 NTD32.27:USD1 based on Federal Reserve Bank of New York, USA as of June 30, 2010.

(3) EBITDA=Operating Income +D&A, that is, operating income before depreciation and amortization.

ABOUT AU OPTRONICS

AU Optronics Corp. (AUO) is a global leader of thin film transistor liquid crystal display panels (TFT-LCD). AUO is able to provide customers with a full range of panel sizes and comprehensive applications, offering TFT-LCD panels in sizes ranging from 1.2 inches to greater than 65 inches. AUO generated NT$359.3 billion (US$11.2 billion) in sales revenue* in 2009 with global operations in Taiwan, Mainland China, Japan, Singapore, South Korea, the U.S., and Europe. Additionally, AUO is the first pure TFT-LCD manufacturer to be successfully listed at the New York Stock Exchange (NYSE). AUO extended its market to the green energy industry in late 2008, and formally founded its Solar Photovoltaic Business Unit in October 2009. For more information, please visit AUO.com.

* 2009 year end revenue converted at an exchange rate of NTD31.95:USD1.

Safe Harbour Notice

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), a global leader of TFT-LCD panels, today announced the above news. Except for statements in respect of historical matters, the statements contained in this Release are "forward-looking statements" within the meaning of Section 27A of the U.S. Securities Act of 1933 and Section 21E of the U.S. Securities Exchange Act of 1934. These forward-looking statements were based on our management's expectations, projections and beliefs at the time regarding matters including, among other things, future revenues and costs, financial performance, technology changes, capacity, utilization rates, yields, process and geographical diversification, future expansion plans and business strategy. Such forward looking statements are subject to a number of known and unknown risks and uncertainties that can cause actual results to differ materially from those expressed or implied by such statements, including risks related to the flat panel display industry, the TFT-LCD market, acceptance of and demand for our products, technological and development risks, competitive factors, and other risks described in the section entitled "Risk Factors" in our Form 20-F filed with the United States Securities and Exchange Commission on May 11th, 2010.

SOURCE AU Optronics Corp.