By Business Wirevia The Motley Fool
Filed under: Investing
Global-Tech Advanced Innovations Reports Third Quarter Results for Fiscal 2013; Makes Significant Investment
to Expand CCM Business
HONG KONG–(BUSINESS WIRE)– Global-Tech Advanced Innovations Inc. (NAS: GAI) today announced its financial results for the fiscal quarter ended December 31, 2012 (the Company’s third quarter of fiscal 2013).
Net sales for the third quarter of fiscal 2013 were $20.6 million, compared to $22.3 million for the corresponding quarter in fiscal 2012. Net income for the third quarter of fiscal 2013 was $0.06 million, or $0.01 per share, compared to a net income of $3.3 million, or $1.09 per share, for the third quarter of fiscal 2012, which included $1.7 million in income from discontinued operations, net of taxes. As a result of the discontinued operation of our home appliance segment in January 2012, proper accounting treatment requires that net sales for the third quarter of fiscal 2012 exclude approximately $21.9 million in sales of home appliances.
Net sales for the nine months ended December 31, 2012 were $67.2 million, up approximately 24% when compared to $54.2 million in the corresponding nine-month period in fiscal 2012. Net income for the first nine months of fiscal 2013 was $0.3 million, or $0.10 per share, compared to a net income of $2.9 million, or $0.97 per share, for the first nine months of fiscal 2012. As a result of the discontinued operation of our home appliance segment in January 2012, proper accounting treatment requires that net sales for the first nine months of fiscal 2012 exclude approximately $49.0 million in sales of home appliances.
John C.K. Sham, the Company’s President and Chief Executive Officer, said: “The growth momentum of our CCM business was slowed in the third quarter of fiscal 2013 by the unanticipated placement of purchase orders by some of our key customers for lower cost, lower pixel CCMs rather than higher pixel CCMs. The slowing momentum in our CCM business, together with rapidly rising labor costs in our electronic manufacturing service (EMS) business, adversely impacted our financial results for the third quarter of fiscal 2013.”
Mr. Sham continued, “As discussed in prior releases and filings, opportunity remains for growth of our CCM business. To that end, significant investments were recently made towards the installation of two chip-on-board (COB) production lines and a COB sampling line, both of which we anticipate will expand and enhance our production capacity. A Class 10 clean room has …read more
Source: FULL ARTICLE at DailyFinance