Welcome!

News Feed Item

Global-Tech Advanced Innovations Announces Fiscal 2014 Results

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 lessee’s operations.

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 circumstances.

 

GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Amounts expressed in United States dollars, except per share data)

 
Year Ended

March 31,

  2014       2013       2012  
(audited) (audited) (audited)
 
Net sales $ 62,692,901 $ 66,827,070 $ 55,212,779

Cost of goods sold

  (57,999,265 )   (56,854,674 )   (48,384,573 )
Gross profit 4,693,636 9,972,396 6,828,206
Selling, general and administrative expenses (13,148,067 ) (12,383,973 ) (7,026,786 )
Other operating income , net   -     -     28,589  
Operating profit (loss) (8,454,431 ) (2,411,577 ) (169,991 )
Interest income, net 685,138 1,504,166 95,477
Other income (expenses), net   2,396,789     583,315     1,124,478  
Income (Loss) from continuing operations before income taxes (5,372,504 ) (324,096 ) 1,049,964
Income tax benefit (expense)   255,927     841,900     (1,228,625 )
Income (Loss) from continuing operations (5,116,577 ) 517,804 (178,661 )
Income (Loss) from discontinuing operations, net of tax   (5,547,024 )   (2,589,063 )   1,595,997  
Net income (loss) (10,663,601 ) (2,071,259 ) 1,417,336
Net income (loss) attributable to non-controlling interests   108,044     107,958     (6,659 )
 

Net income (loss) attributable to shareholders of Global-Tech Advanced Innovations Inc

$

(10,555,557

)

$

(1,963,301

)

$

1,410,677

 
 
Basic and diluted earnings (loss) from continuing operations per share of common stock $ (1.65 ) $ 0.21   $ (0.06 )
 
Basic and diluted earnings (loss) per share of common stock $ (3.47 ) $ (0.65 ) $ 0.46  
 

Basic and diluted weighted average number of shares of common stock

  3,041,625     3,040,310     3,039,727  
 
 

GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts expressed of United States dollars)

   
March 31,

2014

March 31,

2013

(audited) (audited)

ASSETS

Current assets:
Cash and cash equivalents $ 22,820,300 $ 32,385,376
Time deposits 11,339,515 -
Restricted cash 4,013,565 14,592,289
Available-for-sale investments 1,050,500 17,153
Accounts and bills receivable, net 21,216,884 19,713,608
Inventories 7,162,867 5,392,332
Prepaid expenses 123,462 181,224
Deposits and other assets 2,475,765 5,044,456
Amount due from a related party   12,569     18,841  
Total current assets 70,215,427 77,345,279
Interests in jointly-controlled entities - -
Property, plant and equipment, net 26,316,958 26,528,681
Land use rights, net 2,923,424 3,026,537
Deposits paid for purchase of property, plant and equipment 212,134 280,146
Available-for-sale investments   -     1,045,200  
Total assets $ 99,667,943   $ 108,225,843  
 
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Short-term bank loans 7,279,629 4,826,241
Accounts payable 12,520,080 7,134,526
Customer deposits 1,138,500 1,331,100
Accrued salaries, allowances and other employee benefits 2,980,622 4,367,642
Other accrued liabilities 5,720,757 9,643,638
Income tax payable   4,233,169     4,659,313  
Total current liabilities 33,872,757 31,962,460
Deferred tax liabilities   5,183     5,180  
Total liabilities   33,877,940     31,967,640  
 

Shareholders' equity:

 

 

 

 

Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,233,814

 

 

and 3,230,814 shares issued as of March 31, 2014 and 2013

129,253

129,233

Additional paid-in capital 85,103,910 85,053,402
Statutory reserves 1,340,229 1,238,361
Accumulated deficit (26,590,366 ) (15,932,941 )
Accumulated other comprehensive income 10,854,689 10,709,740
Less: Treasury stock, at cost, 189,587 shares as of March 31, 2014 and 2013   (4,663,321 )   (4,663,321 )
Total Global-Tech Advanced Innovations Inc. shareholders’ equity 66,174,494 76,534,474
Non-controlling interests   (384,491 )   (276,271 )
Total shareholders’ equity   65,790,003     76,258,203  
Total liabilities and shareholders' equity $ 99,667,943   $ 108,225,843  
 

More Stories By Business Wire

Copyright © 2009 Business Wire. All rights reserved. Republication or redistribution of Business Wire content is expressly prohibited without the prior written consent of Business Wire. Business Wire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
SYS-CON Events announced today that Golden Gate University will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Since 1901, non-profit Golden Gate University (GGU) has been helping adults achieve their professional goals by providing high quality, practice-based undergraduate and graduate educational programs in law, taxation, business and related professions. Many of its courses are taug...
Today most companies are adopting or evaluating container technology - Docker in particular - to speed up application deployment, drive down cost, ease management and make application delivery more flexible overall. As with most new architectures, this dream takes significant work to become a reality. Even when you do get your application componentized enough and packaged properly, there are still challenges for DevOps teams to making the shift to continuous delivery and achieving that reducti...
SYS-CON Events announced today that SIGMA Corporation will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. uLaser flow inspection device from the Japanese top share to Global Standard! Then, make the best use of data to flip to next page. For more information, visit http://www.sigma-k.co.jp/en/.
As you move to the cloud, your network should be efficient, secure, and easy to manage. An enterprise adopting a hybrid or public cloud needs systems and tools that provide: Agility: ability to deliver applications and services faster, even in complex hybrid environments Easier manageability: enable reliable connectivity with complete oversight as the data center network evolves Greater efficiency: eliminate wasted effort while reducing errors and optimize asset utilization Security: imple...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, will discuss how by using...
In this strange new world where more and more power is drawn from business technology, companies are effectively straddling two paths on the road to innovation and transformation into digital enterprises. The first path is the heritage trail – with “legacy” technology forming the background. Here, extant technologies are transformed by core IT teams to provide more API-driven approaches. Legacy systems can restrict companies that are transitioning into digital enterprises. To truly become a lead...
DevOps at Cloud Expo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to w...
SYS-CON Events announced today that CAST Software will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CAST was founded more than 25 years ago to make the invisible visible. Built around the idea that even the best analytics on the market still leave blind spots for technical teams looking to deliver better software and prevent outages, CAST provides the software intelligence that matter ...
SYS-CON Events announced today that Daiya Industry will exhibit at the Japanese Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Ruby Development Inc. builds new services in short period of time and provides a continuous support of those services based on Ruby on Rails. For more information, please visit https://github.com/RubyDevInc.
When it comes to cloud computing, the ability to turn massive amounts of compute cores on and off on demand sounds attractive to IT staff, who need to manage peaks and valleys in user activity. With cloud bursting, the majority of the data can stay on premises while tapping into compute from public cloud providers, reducing risk and minimizing need to move large files. In his session at 18th Cloud Expo, Scott Jeschonek, Director of Product Management at Avere Systems, discussed the IT and busine...
As businesses evolve, they need technology that is simple to help them succeed today and flexible enough to help them build for tomorrow. Chrome is fit for the workplace of the future — providing a secure, consistent user experience across a range of devices that can be used anywhere. In her session at 21st Cloud Expo, Vidya Nagarajan, a Senior Product Manager at Google, will take a look at various options as to how ChromeOS can be leveraged to interact with people on the devices, and formats th...
Is advanced scheduling in Kubernetes achievable? Yes, however, how do you properly accommodate every real-life scenario that a Kubernetes user might encounter? How do you leverage advanced scheduling techniques to shape and describe each scenario in easy-to-use rules and configurations? In his session at @DevOpsSummit at 21st Cloud Expo, Oleg Chunikhin, CTO at Kublr, will answer these questions and demonstrate techniques for implementing advanced scheduling. For example, using spot instances ...
First generation hyperconverged solutions have taken the data center by storm, rapidly proliferating in pockets everywhere to provide further consolidation of floor space and workloads. These first generation solutions are not without challenges, however. In his session at 21st Cloud Expo, Wes Talbert, a Principal Architect and results-driven enterprise sales leader at NetApp, will discuss how the HCI solution of tomorrow will integrate with the public cloud to deliver a quality hybrid cloud e...
SYS-CON Events announced today that Yuasa System will exhibit at the Japan External Trade Organization (JETRO) Pavilion at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Yuasa System is introducing a multi-purpose endurance testing system for flexible displays, OLED devices, flexible substrates, flat cables, and films in smartphones, wearables, automobiles, and healthcare.
DevOps is under attack because developers don’t want to mess with infrastructure. They will happily own their code into production, but want to use platforms instead of raw automation. That’s changing the landscape that we understand as DevOps with both architecture concepts (CloudNative) and process redefinition (SRE). Rob Hirschfeld’s recent work in Kubernetes operations has led to the conclusion that containers and related platforms have changed the way we should be thinking about DevOps and...