HSINCHU, Oct. 22 /Xinhua-PRNewswire/ --
Third Quarter 2007 Unaudited Consolidated Financial Highlights
-- Revenues up 30.1% QoQ to NT$137.96 billion
-- Net income after tax of NT$22.57 billion
-- Earnings per share of NT$2.89 (US$0.88 per ADR)
-- Gross margin: 23%
-- Operating margin: 18.7%
AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 3Q2007. All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan ("ROC GAAP"). For the third quarter ended September 30, 2007, AUO’s consolidated revenue totaled NT$137.96 billion (US$4.2 billion*), consolidated net income NT$22,571 million (US$691 million), attributable to equity holders of the parent company NT$22,530 million (US$690 million) and basic EPS NT$2.89 per common share (US$0.88 per ADR unit). For the first nine months of 2007, AUO’s consolidated revenues totaled NT$324 billion (US$9.9 billion), consolidated net income after tax NT$23,384 million (US$0.7 billion), attributable to equity holders of the parent company NT$23,412 million (US$0.7 billion) and basic EPS NT$3 per common share (US$0.9 per ADR.)
In terms of 3Q2007 panel shipments, large-sized panel increased by 14.3% to 22.26 million from 2Q2007, while shipments of small- and medium-sized panel amounted to 40.70 million with a 26.3% QoQ increase, both once again set record high for the company’s single-quarter unit shipment.
Mr. Max Cheng, Vice President and Chief Financial Officer of AUO, stated, "We are extremely pleased with the record high operating results that we have reached today. The 3Q2007 consolidated after-tax net income of NT$22.5 billion was 1.5 times more than the previous record high of NT$14.3 billion in 2Q2004. In addition to the strong demand from end-user markets, and stable even gradually increased panel ASP, the contributions of post-QDI merger synergy with the result of the whole is greater than the sum of the parts boosted the 3Q2007 gross margin to 23% from 11.4% sequentially, while the operating margin lifted to 18.7% from the earlier quarter of 6.5%. Through over one year of several post-M&A integration initiatives, such as R&D platform resource integration, better supply chain management practice, optimization of complementary production line strategy in different generation fabrications, and implement of more competitive product mix, AUO successfully reduced the 3Q2007 inventory turnover to 38 days from 43 days sequentially, and further demonstrated its outstanding execution to accomplished the extremely difficult QDI merger case as well as its effective integration initiatives to maximize business performance.
* Amounts converted by an exchange rate of NTD32.67:USD1 as of September
30, 2007.
About AU Optronics
AU Optronics Corp. ("AUO") is one of the top three largest manufacturers* of large-size thin film transistor liquid crystal display panels ("TFT-LCD"), with approximately 20.2%* of global market share with revenues of NT$293.1billion (US$9.0bn)* in 2006. TFT-LCD technology is currently the most widely used flat panel display technology. Targeted for 40"+ sized LCD TV panels, AUO’s new generation (7.5-generation) fabrication facility production started mass production in the fourth quarter of 2006. The Company currently operates one 7.5-generation, two 6th-generation, four 5th-generation, one 4th-generation, and four 3.5-generation TFT- LCD fabs, in addition to eight module assembly facilities and the AUO Technology Center specializes in new technology platform and new product development. AUO is one of few top-tier TFT-LCD manufacturers capable of offering a wide range of small- to large- size (1.5"-65") TFT-LCD panels, which enables it to offer a broad and diversified product portfolio.
* DisplaySearch 2Q2007 WW Large-Area TFT-LCD Shipment Report dated Aug 7,
2007. This data is used as reference only and AUO does not make any
endorsement or representation in connection therewith. 2006 year end
revenue converted by an exchange rate of NTD32.59:USD1.
Safe Harbour Notice
AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), the worldwide top three manufacturer of large-size 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 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 July 2nd, 2007.
