Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its
financial results for the fiscal year ended March 31, 2014.
Net sales for fiscal 2014 were $62.7 million, compared to net sales of
$66.8 million in fiscal 2013. Net loss for fiscal 2014 was $10.7
million, or $3.47 per share, compared to a net loss of $2.1 million, or
$0.65 per share, in fiscal 2013.
Net sales for the fourth quarter of fiscal 2014 were $17.7 million,
compared to $13.9 million in the corresponding period in fiscal 2013.
Net loss for the fourth quarter of fiscal 2014 was $3.2 million, or
$1.04 per share, compared to a net loss of $2.3 million, or $0.75 per
share, for the corresponding quarter in fiscal 2013.
As previously announced, the Company's electronic manufacturing services
(EMS) business became a discontinued operation in December 2013. The
loss from discontinued operations in fiscal 2014 was $5.5 million,
compared to $2.6 million in fiscal 2013.
As of March 31, 2014, the Company had leased approximately 76,000 square
meters of excess production space out of 122,000 square meters that were
no longer utilized as a result of the discontinuation of the EMS
business in fiscal 2014 and the home appliance business in fiscal 2012.
Subsequent to fiscal year end, the Company entered into a five-year
contract to lease 26,000 square meters of production space (including
equipment) located in the facility that previously housed our EMS
business. In spite of contractual obligations, leasing income will
ultimately depend upon the continuing financial viability of the
John C.K. Sham, the Company's President and Chief Executive Officer,
said: "During fiscal 2014 our remaining operations, namely electronic
components, did not generate sufficient income to cover expenses,
primarily due to pricing concessions caused by intense market
competition. Despite an increase in unit volume of approximately 8%, net
sales declined approximately 7%."
Mr. Sham continued, "We expect unit volume within our electronic
components business to grow in fiscal 2015 and, provided that we are
able to improve yields and increase productivity in our new COB
operation, the electronic components business should gradually return to
profitability. As in prior years, innovation will continue to be a
driving force in improving our financial results."
Mr. Sham concluded, "We expect that income generated through the leasing
of those portions of our facilities that previously housed our
discontinued operations will be sufficient to cover a majority of the
expenses associated with maintaining our factory complex in Dongguan,
China." While leasing our excess production space is currently being
utilized to generate income, we are also exploring other viable options
which can fully recognize and create more value from this property."
Global-Tech Advanced Innovations Inc. is a holding company, owning
subsidiaries that manufacture and market electronic components and other
related products, such as complementary metal oxide semiconductor (CMOS)
camera modules (CCMs). The primary focus of its subsidiaries is to
develop and market high-quality products for the communications industry
in China and export such products to markets in other countries
throughout the world.
Except for historical information, certain statements contained
herein are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of
1995. Words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "should," "estimates," or variations of such words
and similar expressions are intended to identify such forward-looking
statements. These forward-looking statements are subject to risks and
uncertainties, including but not limited to, the impact of competitive
products and pricing, demand for new and existing products in our core
business, the financial condition of the Company's customers, product
demand and market acceptance especially of our new products, the success
of new product development especially in the area of cellular phone
components and solutions, compact camera modules and other pending
projects, reliance on material customers, suppliers and key strategic
alliances, the terms and conditions of customer contracts and purchase
orders, availability and cost of raw materials, the timely and proper
execution of certain business plans, including the plan to diversify and
transform a portion of manufacturing capacity to higher-value,
technology-oriented products, currency fluctuations, including the
revaluation of the Chinese Renminbi, the imposition by China's trading
partners of economic sanctions and/or protective tariffs on Chinese
manufactured goods, uncertainties associated with investments, the
regulatory environment, fluctuations in operating results, the impact of
changing global, political and economic conditions and other risks
detailed from time to time in the Company's filings with the U.S.
Securities and Exchange Commission including its most recent Report on
Form 20-F. The Company does not undertake to update its
forward-looking information, or any other information contained or
referenced in this press release to reflect future events or
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts expressed in United States dollars, except per share data)
Cost of goods sold
Net income (loss) attributable to shareholders of Global-Tech
Advanced Innovations Inc
Basic and diluted weighted average number of shares of common stock
CONSOLIDATED BALANCE SHEETS
(Amounts expressed of United States dollars)
Common stock, par value $0.04 per share; 12,500,000 shares
and 3,230,814 shares issued as of March 31, 2014 and 2013
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