HONG KONG, November 17, 2011 /PRNewswire-Asia/ --
Quarterly Highlights:
ACL Semiconductors Inc. (OTC Bulletin Board: ACLO), a leading China-based distributor of Samsung memory components in Hong Kong and Southern China, reported unaudited financial results for the quarter ended September 30, 2011.
Mr. Chung-Lun Yang, Chairman and Chief Executive Officer of ACL Semiconductors Inc., commented, "The third quarter 2011 results reflect a significant improvement from the previous quarter. Following difficult selling conditions in the second quarter 2011, we managed to negotiate more favorable purchasing prices from Samsung. A better offering price was achieved early on in the third quarter 2011, which contributed to a reduction in the cost of sales."
For the quarter ended September 30, 2011, ACL Semiconductors reported net revenue of $74.0 million, as compared to revenue of $102.3 million for the same period last year. Mr. Yang continued, "Our revenue performance is a direct result of the market dominance of tablets which forced many of our customers to switch from export strategies to focus on the stronger and better diversified domestic PRC market. This has led to temporary reduced demand for NAND Flash; however the NAND Flash market otherwise remains strong."
Net income for the quarter ended September 30, 2011 was $1.9 million compared to net loss of $76,736 in the same period last year. This represents a net income increase of $1,994,975 year-over-year. The increase in net income was primarily a result of improved gross margin following purchase price re-negotiation with Samsung. Earnings per diluted share was $0.07 for the quarter ended September 30, 2011 compared to $0.00 per diluted share in the same period last year.
Gross profit for the third quarter 2011 was $3.7 million, up 291.5% from $950,633 for the third quarter 2010, primarily due to lower margins. Gross margin for the third quarter of 2011 was 5.0%, up from 0.9% for the third quarter 2010. The increase in gross profit and gross margins is mainly due to the decrease in cost of sales in the third quarter 2011.
Mr. Chung-Lun Yang continued, "While we did see a challenging quarter due to global macroeconomic conditions and the effect on NAND flash sale prices, we don't expect this trend to continue. We believe both the second and third quarters of 2011 represented irregular performances as a direct result of volatility in the semiconductor market. However, the overall NAND Flash market demand remains strong and our outlook remains favorable. We do anticipate market volatility to continue into the fourth quarter 2011 and we expect our annual results to become stable."
About ACL Semiconductors Inc.
ACL Semiconductors distributes electronic components under the "Samsung" brand name to the Hong Kong and South China markets. The memory chips are used in everything from mobile phones, digital cameras and laptop computers to MP3 players and Wi-Fi products. For more information about ACL Semiconductors, please visit ACL Semiconductors' corporate website at http://www.acl-semicon.com .
Forward-Looking Statements
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings.
Investor Contacts:
Kun Lin Lee
Chief Financial Officer
ACL Semiconductors Inc.
+852-3666-9939
klee@atlantic.com.hk
Joseph Villalta
The Ruth Group
+1-646-536-7003
+1-408-981-9363
jvillalta@theruthgroup.com
