WPG (TSE:3702) Reports Consolidated First Quarter Sales, With Diluted EPS of NT$0.64, 20% YoY Net Income Increase
2009-05-06
WPG (TSE:3702) Reports Consolidated First Quarter Sales, With Diluted EPS of NT$0.64, 20% YoY Net Income Increase
Generates Recorded Operating Cash Inflow of NT$6.5 Billion (US$191 million)
Taipei, Taiwan 2009/5/06
WPG, the largest distributor of semiconductor components in Asia, reported Q109 consolidated sales of NT$371 billion (US$1,091 Million) and net income of NT$542 million (US$15.93M), representing 20% YoY growth. The first quarter’s operating margin posted a better-than-expected increase from 1.1~1.3% to 2.2%, and the diluted earning per share of NT$ 0.64 of Q109.
“The first quarter’s results exceeded our own expectations, driven by the expansion of emerging markets, especially the demands of China’s domestic market,” said Simon Huang, chairman and president. “Moreover, the acquisition of AIT has been effective from February 2009, by its strong performance, it has made more than 10% and 20% sales and profit contribution to the group respectively in the first quarter.”
Due to profit earned and effective inventory management, Q109 Return on Working Capital (ROWC), the key financial performance index, was 14.90%, and ROE was 11.21%. Operating cash cycle days reached the lowest level to nearly 30 days. In the first quarter of 2009, the company generated NT$6.5 billion (US$191 million) positive cash flow, which drives tremendous improvement on WPG financial structure and asset liquidity, thereby allowing it maintains a very strong liquidity position. The BOD resolved cash dividend NT1.4 per share on April 28, 2009.
“Looking ahead, there is no doubt WPG will leverage the economics of scale and the market share in Asia-Pacific region, and we are confident of the continuing delivery of our profitability and ROE to the shareholders,” added Cliff Yuan, vice president of corporate finance and accounting.
Scott Lin, vice president of marketing management unit, sated, “in addition to CSR, Panasonic and PixArt carried by AIT, in order to diversify the product mix and penetrate new markets, WPG has new franchises of Kemet, Wintek and KST, increasing our component sales applied to 4C (Computer/ Communication/ Consumer/ Car) applications.”
Table: WPG Holdings Consolidated Management Financials for the quarter ended March 31, 2009. (in brief)
Units：NT$ million
Income Statement (2009/1/1~2009/3/31)Balance Sheet (2009/1/1~2009/3/31)
ItemAmountItemAmount
Net Sales37,118Current Assets47,885
Cost of Goods Sold(35,031) Accounts receivables20,054
Gross Profit2,087 Inventory15,836
Operating Expenses(1,338)Other assets3,102
Operating Profit749Total Assets50,987
Non-op Expenses(48)Current Liabilities28,997
Profit Before Tax702 Accounts payables15,775
Tax(189)LT Liabilities2,301
Minority & Others(1)Total Liabilities31,657
Profit After tax542Common Stock8,917
EPS (Note)0.64Stockholders Equity19,331
Net book value per share(Note)22.86
Note：Based on weighted average outstanding shares.
Cash flows (2009/1/1~2009/3/31)
ItemAmount
Net Income542
Changes of NWC5,700
Operating cash inflow6,523
Investment cash inflow585
Financial Debt(6,690)
Financing cash outflow(6,664)
Cumulative translation adjustments516
Effect on changes of consolidated subsidiaries703
Net Cash1,663
Beginning cash balance6,089
Ending cash balance7,752
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268 / ext.5278
Email address: ir@WPGholdings.com; Corporate website: www.WPGholdings.com
Generates Recorded Operating Cash Inflow of NT$6.5 Billion (US$191 million)
Taipei, Taiwan 2009/5/06
WPG, the largest distributor of semiconductor components in Asia, reported Q109 consolidated sales of NT$371 billion (US$1,091 Million) and net income of NT$542 million (US$15.93M), representing 20% YoY growth. The first quarter’s operating margin posted a better-than-expected increase from 1.1~1.3% to 2.2%, and the diluted earning per share of NT$ 0.64 of Q109.
“The first quarter’s results exceeded our own expectations, driven by the expansion of emerging markets, especially the demands of China’s domestic market,” said Simon Huang, chairman and president. “Moreover, the acquisition of AIT has been effective from February 2009, by its strong performance, it has made more than 10% and 20% sales and profit contribution to the group respectively in the first quarter.”
Due to profit earned and effective inventory management, Q109 Return on Working Capital (ROWC), the key financial performance index, was 14.90%, and ROE was 11.21%. Operating cash cycle days reached the lowest level to nearly 30 days. In the first quarter of 2009, the company generated NT$6.5 billion (US$191 million) positive cash flow, which drives tremendous improvement on WPG financial structure and asset liquidity, thereby allowing it maintains a very strong liquidity position. The BOD resolved cash dividend NT1.4 per share on April 28, 2009.
“Looking ahead, there is no doubt WPG will leverage the economics of scale and the market share in Asia-Pacific region, and we are confident of the continuing delivery of our profitability and ROE to the shareholders,” added Cliff Yuan, vice president of corporate finance and accounting.
Scott Lin, vice president of marketing management unit, sated, “in addition to CSR, Panasonic and PixArt carried by AIT, in order to diversify the product mix and penetrate new markets, WPG has new franchises of Kemet, Wintek and KST, increasing our component sales applied to 4C (Computer/ Communication/ Consumer/ Car) applications.”
Table: WPG Holdings Consolidated Management Financials for the quarter ended March 31, 2009. (in brief)
Units：NT$ million
Income Statement (2009/1/1~2009/3/31)Balance Sheet (2009/1/1~2009/3/31)
ItemAmountItemAmount
Net Sales37,118Current Assets47,885
Cost of Goods Sold(35,031) Accounts receivables20,054
Gross Profit2,087 Inventory15,836
Operating Expenses(1,338)Other assets3,102
Operating Profit749Total Assets50,987
Non-op Expenses(48)Current Liabilities28,997
Profit Before Tax702 Accounts payables15,775
Tax(189)LT Liabilities2,301
Minority & Others(1)Total Liabilities31,657
Profit After tax542Common Stock8,917
EPS (Note)0.64Stockholders Equity19,331
Net book value per share(Note)22.86
Note：Based on weighted average outstanding shares.
Cash flows (2009/1/1~2009/3/31)
ItemAmount
Net Income542
Changes of NWC5,700
Operating cash inflow6,523
Investment cash inflow585
Financial Debt(6,690)
Financing cash outflow(6,664)
Cumulative translation adjustments516
Effect on changes of consolidated subsidiaries703
Net Cash1,663
Beginning cash balance6,089
Ending cash balance7,752
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268 / ext.5278
Email address: ir@WPGholdings.com; Corporate website: www.WPGholdings.com