Lite-On Technology (2301-tw) today reported fourth quarter 2012 consolidated sales of NT$32.06, up 10% Y-o-Y, and net profits of 2.31 billion, up by an impressive 54% Y-o-Y with EPS of NT$1.02, while both sales revenue and profits hit quarterly highs in 2012. The gross margin and operating margin in Q4 were 13.6% and 6.3%, up 0.9% and 0.8% Y-o-Y respectively. These increases were mainly attributable to the growth in Camera Modules, LED, and HIS (Human Input Solutions-PC keyboards and peripherals), coupled with a better product mix and effective supply chain management.
     In 2012, Lite-On’s core business units showed steady growth. Thanks to high demand for Cloud Computing, mobiles Devices and LED Lighting applications, Camera Module revenue grew by over 30% Y-o-Y, supported by its production capacity expansion and the smooth delivery of high-end products, as well as ongoing gains in the global market share of smartphoness and tablet PCs. Meanwhile, revenue from LED lighting components increased tremendously by over 300% Y-o-Y, thanks to substantial demand from branded customers and delivery growth. As a result, the Optoelectronics SBG posted a yearly revenue growth of approximately 20% Y-o-Y. Additionally, the HIS business unit also enjoyed a growth of approximately 20% Y-o-Y, resulting from increased shipments of keyboards for tablet PCs and ongoing global market share gains in desktop and notebook PCs, while the Power Supplies SBG showed a continuous revenue growth.
     Despite the global economic slowdown in 2012, Lite-On’s annual consolidated sales reached NT$121.5 billion, up 2% Y-o-Y, while posting a net profit of NT$7.53 billion, up 4% with EPS of NT$3.33, demonstrating the company’s profitable growth. The gross margin and operating margin were 13.2% and 6.1% respectively, and the gross profit and operating profit increased 9% and 14% Y-o-Y respectively, both hitting new 5-year record yearly highs. These profit increases were attributable to improved operating efficiency, productivity and SCM. Meanwhile, R&D increased 13% Y/Y, further strengthening Lite-On’s leading position in the areas of advanced power solutions, optoelectronics and mechanical competence. Net cash position reached NT$14.5 billion, with a CCC (Cash Conversion Cycle) of 13 days, through aggressive working capital management coupled with a positive free cash flow generated from operations.
     In 2012, non-operating items posted a net income of NT$1.24 billion, of which Lite-On mobiles reported Q4 revenue of €159 million while posting a gross margin and an operating margin of 9.2% and 2.5%, both sequentially up 1.5% and 0.7% respectively, while net profits reached €0.85 million. The profit growth was mainly attributable to a favorable program mix and a further diversification of customer base. 2012 annual sales revenue was €705 million, maintaining the similar level as last year. Looking ahead, Lite-On mobiles is expected to make 2013 more profitable, through expanding its customer base, improving operational efficiency and providing innovative mechanics solutions.
     Lite-On's Board has proposed a 2012 dividend plan offering NT$ 2.4 per share. Of that sum, the cash and stock dividend portions will be NT$2.35 and NT$0.05 per share respectively, based on NT$3.33 EPS in 2012. The dividend payout ratio and cash yield reached 72 % and 5 % respectively, maintaining a stable and generous dividend policy. Moreover, Lite-On has obtained 857,135,518 common shares of Lite-On IT, equivalent to a 93.05% stake in Lite-On IT, during the tender offer period.
     In 2013, sequential growth from Cloud, mobiles and LED Lighting applications is expected through integrated synergies, whilst increasing value-added products and market share in IT applications.

Press Contact:
Julia Wang, Director of IR/PR
+886-2-8798-2888
Liteontech.IR@yizhaojr.com