WPG (TSE:3702) Reports Consolidated First Quarter Sales of NT$ 58 Billion, With Diluted EPS of NT$1.41, 132% YoY Net Income Increase
2010-05-04
WPG (TSE:3702) Reports Consolidated First Quarter Sales of NT$ 58 Billion, With Diluted EPS of NT$1.41, 132% YoY Net Income Increase
Taipei,Taiwan 2010/5/4
WPG, the largest distributor of semiconductor components in Asia, reported the first quarter 2010 consolidated sales of NT$58 billion, the operating margin posted a better-than-expected increased ahead of guidance range from 2.1~2.3% to 2.61%, the net income reached NT$1258 million, representing 132% growth in the year ago quarter, the diluted earning per share would have been NT$ 1.41, which has been WPG”s best Q1 earning result.
“The first quarter’s results exceeded our own high expectations, the execution was great, the profit has been delivered on the sustainable growth in 3C electronics, and also the strong demand of LED energy-saving products,” said Simon Huang, chairman and president. “Due to profit earned and effective inventory management, Q110 Return on Working Capital (ROWC), the key financial performance index, was 21.5%, and ROE was 24.2% both were back to the hot season levels; operating cash cycle days remained around 43 days, and inventory turnover in days stayed within 30 days, both were at record low levels.”
“Looking ahead, we believe the total Q210 quarter sales will be between NT$60 billion and NT$ 63 billion, with the growth margin in the range of 5.6%~5.8% and we expect the average operating margin is 2.5%~2.7%,” said Cliff Yuan, vice president of corporate finance and accounting.
To enrich product offering, providing better customer service and positioning WPG for continued profitable, above-market growth in the global semiconductor component distribution market, WPG has announced the resolution of the Board of Directors of Yosun (2403 TT) will join WPG on 20th March; and the resolution of the Board of Directors of its 100%-owned subsidiary World Peace Industrial Group will acquire a 100% stake of a Hong Kong-based distributor, AIO Components Company Ltd., on 30th March.
“WPG has one new franchise, Trident Microsystems, Inc., in the first quarter 2010, which will increase our component sales applied to the digital home entertainment market,” stated Scott Lin, vice president of marketing management unit. ” WPG has occupies a unique, value-added space in the supply chain, with growth opportunities across many customer segments, end markets and technologies, in the first quarter, we have provided more than 36 application solutions in the fields of computer(13), consumer electronics(18) and general(5), focusing on applications of LCD TV, LED, 3G and touch panel (for more information please visit WPG Tech on-line, https://www.wpgholdings.com/wpgtechonline.php).”
Table: WPG Holdings Consolidated Management Financials for the quarter ended March 31, 2010. (in brief)
Units：NT$ million
Income Statement (2010/1/1~2010/3/31)
Item Amount
Net Sales 58,045
Cost of Goods Sold (54,657)
Gross Profit 3,388
Operating Expenses (1,874)
Operating Profit 1,514
Non-op Expenses 56
Profit Before Tax 1,570
Tax (305)
Minority & Others (7)
Profit After tax 1,258
EPS (Note) 1.41
Net book value per share(Note)23.72
Note：Based on weighted average outstanding shares.
Balance Sheet (2010/1/1~2010/3/31)
Item Amount
Current Assets 64,442
Accounts receivables33,994
Inventory 20,673
Other assets 3,191
Total Assets 67,633
Current Liabilities41,831
Accounts payables26,508
LT Liabilities 4,160
Total Liabilities46,283
Common Stock 8,946
Stockholders Equity21,349
Cash flows (2010/1/1~2010/3/31)
Item Amount
Net Income 1,258
Changes of NWC (1,041)
Operating cash inflow(646)
Investment cash inflow 510
Financial Debt (970)
Financing cash outflow(978)
Cumulative translation
adjustments (142)
Net Cash (1,256)
Beginning cash balance 6,514
Ending cash balance 5,258
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268/ ext.5278
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com
Taipei,Taiwan 2010/5/4
WPG, the largest distributor of semiconductor components in Asia, reported the first quarter 2010 consolidated sales of NT$58 billion, the operating margin posted a better-than-expected increased ahead of guidance range from 2.1~2.3% to 2.61%, the net income reached NT$1258 million, representing 132% growth in the year ago quarter, the diluted earning per share would have been NT$ 1.41, which has been WPG”s best Q1 earning result.
“The first quarter’s results exceeded our own high expectations, the execution was great, the profit has been delivered on the sustainable growth in 3C electronics, and also the strong demand of LED energy-saving products,” said Simon Huang, chairman and president. “Due to profit earned and effective inventory management, Q110 Return on Working Capital (ROWC), the key financial performance index, was 21.5%, and ROE was 24.2% both were back to the hot season levels; operating cash cycle days remained around 43 days, and inventory turnover in days stayed within 30 days, both were at record low levels.”
“Looking ahead, we believe the total Q210 quarter sales will be between NT$60 billion and NT$ 63 billion, with the growth margin in the range of 5.6%~5.8% and we expect the average operating margin is 2.5%~2.7%,” said Cliff Yuan, vice president of corporate finance and accounting.
To enrich product offering, providing better customer service and positioning WPG for continued profitable, above-market growth in the global semiconductor component distribution market, WPG has announced the resolution of the Board of Directors of Yosun (2403 TT) will join WPG on 20th March; and the resolution of the Board of Directors of its 100%-owned subsidiary World Peace Industrial Group will acquire a 100% stake of a Hong Kong-based distributor, AIO Components Company Ltd., on 30th March.
“WPG has one new franchise, Trident Microsystems, Inc., in the first quarter 2010, which will increase our component sales applied to the digital home entertainment market,” stated Scott Lin, vice president of marketing management unit. ” WPG has occupies a unique, value-added space in the supply chain, with growth opportunities across many customer segments, end markets and technologies, in the first quarter, we have provided more than 36 application solutions in the fields of computer(13), consumer electronics(18) and general(5), focusing on applications of LCD TV, LED, 3G and touch panel (for more information please visit WPG Tech on-line, https://www.wpgholdings.com/wpgtechonline.php).”
Table: WPG Holdings Consolidated Management Financials for the quarter ended March 31, 2010. (in brief)
Units：NT$ million
Income Statement (2010/1/1~2010/3/31)
Item Amount
Net Sales 58,045
Cost of Goods Sold (54,657)
Gross Profit 3,388
Operating Expenses (1,874)
Operating Profit 1,514
Non-op Expenses 56
Profit Before Tax 1,570
Tax (305)
Minority & Others (7)
Profit After tax 1,258
EPS (Note) 1.41
Net book value per share(Note)23.72
Note：Based on weighted average outstanding shares.
Balance Sheet (2010/1/1~2010/3/31)
Item Amount
Current Assets 64,442
Accounts receivables33,994
Inventory 20,673
Other assets 3,191
Total Assets 67,633
Current Liabilities41,831
Accounts payables26,508
LT Liabilities 4,160
Total Liabilities46,283
Common Stock 8,946
Stockholders Equity21,349
Cash flows (2010/1/1~2010/3/31)
Item Amount
Net Income 1,258
Changes of NWC (1,041)
Operating cash inflow(646)
Investment cash inflow 510
Financial Debt (970)
Financing cash outflow(978)
Cumulative translation
adjustments (142)
Net Cash (1,256)
Beginning cash balance 6,514
Ending cash balance 5,258
IR contacts：Cliff Yuan/ Kathryn Chen
Tel：886-2-27068268 ext.5268/ ext.5278
Email address: ir@WPGholdings.com
Corporate website: www.WPGholdings.com