Semiconductor Distributor - WPG (TSE:3702) Announces Third Quarter Consolidated Sales with 20% QoQ Growth, PAT of NT$ 800 Million, a 47% QoQ Increase, and Diluted EPS of NT$1.04
2008-11-03
Semiconductor Distributor - WPG (TSE:3702) Announces Third Quarter Consolidated Sales with 20% QoQ Growth, PAT of NT$ 800 Million, a 47% QoQ Increase, and Diluted EPS of NT$1.04
Announcement Date：2008/11/03
Taipei, Taiwan
WPG, the largest distributor of semiconductor components in Asia, announces third quarter 2008 consolidated sales of NT$ 41.7 billion (US$1.34 billion), increases 20% quarter over quarter. Driven by the growth in demand of the 3C product in emerging market, the passive components profit contribution through the newly acquired Pernas Group and the continuing profit growth with improving efficiency in working capital management, the third quarter 2008 profit after tax grows 47% quarter over quarter, reaching NT$ 800 million (US$ 26 million), the diluted earning per share of NT$ 1.04, and NT$ 2.37 for the first nine months of 2008.
Due to profit growth and effective working capital management, the quarterly Return on Working Capital (ROWC), is 16.64%, and ROE is 22.00%. Moreover, in the first nine months of 2008, the company generates NT$ 2.5 billion positive cash flow, which drives the improvement on WPG financial structure and strengthens balance sheet.
?his quarter results of Pernas, acquired by WPG in July 2008, exceeds our expectations, driven by strong performance in both passive and LED markets, which has made more than 7% profit contribution to the group,?said Simon Huang, chairman and president.
To diversify the product mix and gain market share, ?PG has new franchise of Innofidei, AAC Acoustic and QUINTIC, increasing the component sales applied to handset, NB, MP3, and radio FM transceiver,?said Scott Lin, vice president of marketing management unit.
?n addition to what was previously announced, the acquisition of Asian Information Technology Inc. (AIT) would be effective from 2009,?added Mr. Huang. ?ooking ahead, with its turnover and profit contribution, there is no doubt that we will leverage our economics of scale and the market share in Asia-Pacific region, and we are confident of the continuing delivery of our profitability and ROE to the shareholders.?
Table: WPG Holdings Consolidated Management Financials for the quarter ended September 30, 2008. (in brief)
Units：NT$ million
Income Statement (2008/1/1~2008/9/30) Balance Sheet (2008/9/30)
Item Amount Item Amount
Net Sales 111,086 Current Assets 49,177
Cost of Goods Sold (104,701) Accounts receivables25,338
Gross Profit 6,385 Inventory 16,453
Operating Expenses (3,616) Funds & LT Investment 819
Operating Profit 2,769 Fixed Assets 1,530
Non-op Expenses (400) Total Assets 51,973
Profit Before Tax 2,369 Current Liabilities 33,130
Tax (548) Accounts payables 16,338
Minority & Others (23) LT Liabilities 3,988
Profit After tax 1,799 Total Liabilities 37,420
EPS (Note) 2.37 Common Stock 7,747
Net book value per share(Note) 19.14 Stockholders Equity 14,553
Note：Based on weighted average outstanding shares.
Cash flows (2008/1/1~2008/9/30)
Item Amount
Net Income 1,821
Changes of NWC 559
Adjustment & Others 113
Operating cash inflow 2,493
Financial Instrument 481
Capital Expenditure (160)
Others 34
Investment cash inflow 354
Financial Debt (1,044)
Cash Dividends (1,556)
ESOP 34
Others 96
Financing cash outflow (2,469)
Cumulative translation adjustments (101)
Effect on changes of consolidated subsidiaries 91
Net Cash 367
Beginning cash balance 3,977
Ending cash balance 4,344
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268 DID: 886-2-7712-5268 / 886-2-27068268 ext.5278 DID: 886-2-7712-5278
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com
Announcement Date：2008/11/03
Taipei, Taiwan
WPG, the largest distributor of semiconductor components in Asia, announces third quarter 2008 consolidated sales of NT$ 41.7 billion (US$1.34 billion), increases 20% quarter over quarter. Driven by the growth in demand of the 3C product in emerging market, the passive components profit contribution through the newly acquired Pernas Group and the continuing profit growth with improving efficiency in working capital management, the third quarter 2008 profit after tax grows 47% quarter over quarter, reaching NT$ 800 million (US$ 26 million), the diluted earning per share of NT$ 1.04, and NT$ 2.37 for the first nine months of 2008.
Due to profit growth and effective working capital management, the quarterly Return on Working Capital (ROWC), is 16.64%, and ROE is 22.00%. Moreover, in the first nine months of 2008, the company generates NT$ 2.5 billion positive cash flow, which drives the improvement on WPG financial structure and strengthens balance sheet.
?his quarter results of Pernas, acquired by WPG in July 2008, exceeds our expectations, driven by strong performance in both passive and LED markets, which has made more than 7% profit contribution to the group,?said Simon Huang, chairman and president.
To diversify the product mix and gain market share, ?PG has new franchise of Innofidei, AAC Acoustic and QUINTIC, increasing the component sales applied to handset, NB, MP3, and radio FM transceiver,?said Scott Lin, vice president of marketing management unit.
?n addition to what was previously announced, the acquisition of Asian Information Technology Inc. (AIT) would be effective from 2009,?added Mr. Huang. ?ooking ahead, with its turnover and profit contribution, there is no doubt that we will leverage our economics of scale and the market share in Asia-Pacific region, and we are confident of the continuing delivery of our profitability and ROE to the shareholders.?
Table: WPG Holdings Consolidated Management Financials for the quarter ended September 30, 2008. (in brief)
Units：NT$ million
Income Statement (2008/1/1~2008/9/30) Balance Sheet (2008/9/30)
Item Amount Item Amount
Net Sales 111,086 Current Assets 49,177
Cost of Goods Sold (104,701) Accounts receivables25,338
Gross Profit 6,385 Inventory 16,453
Operating Expenses (3,616) Funds & LT Investment 819
Operating Profit 2,769 Fixed Assets 1,530
Non-op Expenses (400) Total Assets 51,973
Profit Before Tax 2,369 Current Liabilities 33,130
Tax (548) Accounts payables 16,338
Minority & Others (23) LT Liabilities 3,988
Profit After tax 1,799 Total Liabilities 37,420
EPS (Note) 2.37 Common Stock 7,747
Net book value per share(Note) 19.14 Stockholders Equity 14,553
Note：Based on weighted average outstanding shares.
Cash flows (2008/1/1~2008/9/30)
Item Amount
Net Income 1,821
Changes of NWC 559
Adjustment & Others 113
Operating cash inflow 2,493
Financial Instrument 481
Capital Expenditure (160)
Others 34
Investment cash inflow 354
Financial Debt (1,044)
Cash Dividends (1,556)
ESOP 34
Others 96
Financing cash outflow (2,469)
Cumulative translation adjustments (101)
Effect on changes of consolidated subsidiaries 91
Net Cash 367
Beginning cash balance 3,977
Ending cash balance 4,344
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268 DID: 886-2-7712-5268 / 886-2-27068268 ext.5278 DID: 886-2-7712-5278
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com