News

Release Date:05/09/2019

Innolux Corporation Reports First Quarter 2019 Financial Results

 Innolux Corporation (3481.TW) announced its 1Q 2019 consolidated revenues of NT$ 59.9 billion, operating loss of NT$ 4.6 billion, net loss of NT$ 3.7 billion, and a basic EPS of NT$ -0.37, depreciation & amortization of NT$ 8.8 billion and capital expenditure of NT$ 6.8 billion.
 
In 1Q19, the Company shipped 7.02 million square meters, a decrease of 12.8% quarter-on-quarter. Blended area ASP for TFT-LCD panels averaged US$ 276 per square meter. Small and medium-sized panel revenues were NT$ 12.7 billion in 4Q18, a decrease of 21.1% quarter-on-quarter. The Company shipped 553.3 thousand square meter area of small and medium-sized during the first quarter 2019, a decrease of 6.9% quarter-on-quarter.       
 
In terms of product application, Mobile & CP, Mobile PC, Desktop, TV panels accounted for 27%, 18%, 14% and 41% of net sales, respectively. In terms of product size, 10-inch and below, 10-to-20-inch, 20-to-30-inch, 30-to-40-inch, 40-inch-and -above panels accounted for 21%, 24%, 16%, 5%, and 34% of net sales, respectively.
 
Looking back to the first quarter of 2019, due to the low level of panel prices and seasonality, the Company’s revenues declined by 17.1% quarter-over-quarter. Nevertheless, EBITDA margin was still maintained at 7%, and the Company continues to generate positive cash flows from operating business. The management will continue to control cash flow and capital expenditures. Meanwhile, the Company will keep investing in technology upgrade and improving its cost structure.
 
Looking forward to the second quarter and second half of 2019, owning to the shortage of the polarizer, the panel price of TV is expected to maintain stability. The demand of monitor, notebook, and small size panel is expected to recover gradually. The Company will continue to strengthen its product mix and technology competitiveness. Also, the Company will make more efforts on the cost management, aiming to increase its capability to withstand economic fluctuations and ultimately enhance its long-term operational efficiency and stability.
 
Based on our current business outlook, the Company expects its 2Q19 guidance as follows:
Large panel
  Shipments to be up low single digit % QoQ
  Blended ASP to be up low single digit % QoQ
Small & Medium panel
  Shipments to be flat % QoQ
  Blended ASP to be up teens % QoQ



Table 1: Statements of Comprehensive Income
Units: NTD million except per share data
 

  1Q 2019 4Q 2018 QoQ% 1Q 2018
Net Sales 59,924 100.0% 72,243 100.0% -17.1% 66,763 100.0%
  Cost of Goods Sold 59,049 98.5% 67,776 93.8% -12.9% 57,713 86.4%
Gross Profit 875 1.5% 4,468 6.2% -80.4% 9,051 13.6%
Operating Expenses 5,483 9.1% 5,898 8.2% -7.0% 5,222 7.8%
Operating Income(loss) (4,607) -7.7% (1,431) -2.0% - 3,829 5.7%
Net Non-operating Income(Exp.) 976 1.6% 501 0.7% 94.7% 91 0.1%
Income(loss) before Tax (3,632) -6.1% (929) -1.3% - 3,920 5.9%
Net Income(loss) (3,725) -6.2% (697) -1.0% - 2,940 4.4%
  Basic EPS (1)(2) (0.37)   (0.07)     0.30  
EBITDA(3) 4,170 7.0% 7,237 10.0% -42.4% 13,040 19.5%
 
Notes:
1. Basic EPS = Net Income-Parent / Weighted Average of Outstanding Common Shares
2. Capital Stock (common): NT$99.5 billion as of March 31, 2019
3. EBITDA = Operation Income + Depreciation & Amortization
4. All figures are prepared by Innolux Corporation in accordance with the International Financial Reporting Standards as endorsed in TIFRS.

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