Innolux Corporation Announces Unaudited Second Quarter 2014 Gross Margin 10.4% and Net Income NT$3 Billion

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Jul 28, 2014, 05:48 ET

JHUNAN, July 28, 2014 /PRNewswire/ -- Innolux Corporation ("INX", "The Company") (TAIEX: 3481) today announced its second quarter 2014 results. Combined net sales for the second quarter 2014 amounted to NT$ 111.1 billion, an increase of 24% over the previous quarter's NT$ 89.6 billion. The company reported gross profit of NT$ 11.6 billion, for a gross margin of 10.4%. Operating profit totaled NT$ 6.1 billion with an operating margin of 5.5%. Income before tax amounted to NT$ 3.4 billion. Net profit attributable to the shareholders of the parent company amounted to NT$ 3 billion. EPS equaled NT$ 0.33.

Through continuous improvement of financial structure, the company's total debt came down to NT$148.9 billion as of the end of the second quarter 2014, a significant decrease of NT$34.8 billion. Net debt to equity ratio came down from 76.7% in the previous quarter to 64.3% in the second quarter 2014. Net inventory as of the end of the second quarter 2014 was NT$ 45.7 billion, and the inventory turnover day was 44 days.

The Company shipped nearly 7.9 million square meters of panel in the second quarter 2014, a significant increase of 24.8% over the previous quarter. Blended area ASP for TFT-LCD panels averaged US$ 459 per square meter. Small and medium-sized panel revenue amounted to NT$ 25.1 billion in the second quarter 2014, a significant increase of 30% over the previous quarter. The Company shipped 86.9 million small and medium-sized units during the second quarter 2014.

In terms of product application, Small & Medium, Mobile PC & Tablet, Desktop monitor, LCD TV panels accounted for 22%, 16%, 15% and 46% of our net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch-and -above panels accounted for 23%, 22%, 18%, 5%, and 32% of our net sales, respectively.

INX Unaudited 2Q 2014 Income Statement – QoQ Comparison
Units: NTD million except per share data	2Q 2014		1Q 2014		QoQ%	2Q 2013
Net Sales	111,064		89,559		24.0%	111,518
Cost of Goods Sold	99,470	89.6%	83,830	93.6%	18.7%	97,736	87.6%
Gross Profit (Loss)	11,595	10.4%	5,729	6.4%	102.4%	13,782	12.4%
Operating Expense	5,460	4.9%	4,427	4.9%	23.3%	5,715	5.1%
Operating Income (Loss)	6,134	5.5%	1,302	1.5%	371.1%	8,067	7.2%
Net Non-operating Income(Exp.)	(2,723)	-2.5%	(1,140)	-1.3%	-	(3,817)	-3.4%
Income before Tax	3,411	3.1%	162	0.2%	2005.6%	4,250	3.8%
Net Income (Loss)	3,010	2.7%	153	0.2%	1867.3%	4,069	3.6%
Net Income (Loss)-Parent	3,011	2.7%	153	0.2%	1868.0%	4,071	3.7%
Basic EPS ⁽¹⁾⁽²⁾	0.33		0.02		-	0.45
EBITDA⁽³⁾	21,559	19.4%	17,844	19.9%	20.8%	28,241	25.3%

Notes: (1) Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares (2) Capital Stock (common): NT$91.07 billion (3) EBITDA = Operating Income + Depreciation & Amortization (4) All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS). (5) Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership, and already eliminates inter-company transactions between Innolux Corporation and these companies to avoid double-counting.

INX Unaudited 2Q 2014 Balance Sheet
Units: NT$ million	2014.6.30	2014.3.31	2013.6.30
Cash & Short Term Investment	23,440	34,800	36,120
Inventory	45,738	51,060	44,652
Total Assets	463,078	486,388	524,678
Short Term Debt ⁽¹⁾	84,972	96,426	88,933
Long Term Debt ⁽²⁾	63,907	87,261	128,143
Shareholders' Equity⁽³⁾	195,085	194,212	193,117
Net Debt to Shareholders' Equity	64.3%	76.7%	93.7%

Depreciation & Amortization	15,425	16,542	20,174
Capital Expenditure	4,668	4,169	4,579

Notes: (1) Short term debt = (short-term bank loan + commercial papers + current portion of long term loan) (2) Long term debt = (long-term bank loan + corporate bonds) (3) Capital Stock (common): NT$91.07 billion; Book value per common stock: NT$ 21.42 (4) All figures are unaudited, prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in R.O.C. (TIFRS). (5) Combined figures presented refer to results from other TFT-LCD related subsidiaries in which Innolux Corporation has 50% or more ownership, and already eliminates inter-company transactions between Innolux Corporation and these companies to avoid double-counting.

Announcement Contact:

Jyh-Chau Wang	Anita Chien
Spokesperson	Media Contact
Tel: +886-(0)6-505-3760	Tel: +886-(0)6-505-1888 ext. 47153
Email: [email protected]	Cell: +886-(0)911-572-225
	Email: [email protected]