AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its unaudited consolidated financial results for the second quarter of 2016(1).
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Consolidated revenues in the second quarter of 2016 were NT$80.09 billion, up by 12.6% from the previous quarter. Gross profit was NT$5.56 billion, with gross margin of 6.9%. Operating profit was NT$0.12 billion, with the operating margin of 0.1%. AUO’s net loss for the second quarter of 2016 was NT$0.80 billion. Net loss attributable to owners of the Company was NT$0.57 billion, with a basic EPS(2) of -NT$0.06.
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In the second quarter of 2016, large-sized panel(3) shipments exceeded 28.46 million units, an increase of 16.5% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were around 42.50 million units, up by 12.6% quarter-over-quarter.
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AUO's unaudited consolidated results for the second quarter of 2016 were highlighted as below:
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Looking back to the second quarter, the end demand for TV sets was strong. Panel prices also increased steadily in the second quarter. These factors led to a 12.6% growth of the Company’s revenues over the previous quarter. While the Company's business has been trending towards the positive side, through its key technologies and a product portfolio that meets the market trend, the Company came back to profitability at the operating profit level. In addition, the Company’s inventory turnover days went down further to 36 days, which was the new low level for the past five quarters.
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With the coming of the higher season in the second half of 2016, the Company expects to maintain its utilization rate at a high level. The Company will keep focusing on enhancing its product value and improving its profitability structure. Moreover, through accumulating its technology capabilities, the Company aims to create stable profitability and to strengthen its competitive advantage.
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(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Basic EPS in the second quarter of 2016 was calculated based on the weighted average outstanding shares of the first half of 2016 (9,624 million shares).
(3) Large size refers to panels that are 10 inches and above in diagonal measurement.
(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.