Lite-On Technology (2301-tw) today reported second-quarter worldwide consolidated sales of NT$30.68 billion, up 12% Q-o-Q, and posted net profits of NT$1.9 billion, up 41% Q-o-Q and 11% Y-o-Y with an EPS of NT$0.84. Lite-On’s second-quarter gross margin was 13.4% with a gross profit growth of 18% Q-o-Q, resulting from a favorable product mix, higher productivity and efficient supply chain management. Meanwhile, thanks to an improved operational scale and cost efficiency, the operational margin reached 6.6% and the operating profit saw a growth of 35% Q-o-Q, hitting a record high in seven quarters.
     In the second quarter, Lite-On’s core business showed steady growth, and thanks to LED Thai-capacity recovery, strong shipments in LED lighting modules and new product launches in mobiles devices and market share gains within key clients, Optoelectronics and Power SBG posted revenue growths of 27% and 10% Q-o-Q respectively. Looking ahead, stable business development is expected in Q3, given moderate growth in cloud computing, such as high-end server and networking power supplies, new model launches in mobiles devices and seasonal demand in consumer electronics.
     In the first half of 2012, Lite-On reported cumulative sales of NT$58.1 billion, and the gross margin and operating margin were 13.0% and 6.1% respectively, while the gross profit and operating profit saw growths of 10% and 15% Y-o-Y respectively. The operating expense ratio was 6.9%, of which R&D expense increased 11% over last year, and net profits were NT$3.24 billion with an EPS of NT$1.43. The second-quarter CCC (Cash Conversion Cycle) was well managed within 14 days through aggressive working capital management, coupled with positive free cash flow, and the net cash position reached NT$13.8 billion, hitting a new record high since 2008.
     For non-operating items, a second-quarter net income of NT$195 million was posted, while Lite-On mobiles reported second quarter sales of €141 million and first-half cumulative sales of €370 million, with a growth of 45% Y-o-Y. In the second-half, better performance is expected, with profitability improving further in Q4, as its diversification of client base continues on schedule and the contribution of new customers continues to grow.

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