Record high! WPG (TSE:3702) Reports Consolidated Third Quarter 2011 Sales of NT$ 87.9 Billion, Operating Income of NT$ 1.88B, Diluted EPS of NT$2.62

2011-11-01

Record high! WPG (TSE:3702) Reports Consolidated Third Quarter 2011 Sales of NT$ 87.9 Billion, Operating Income of NT$ 1.88B, Diluted EPS of NT$2.62

Taipei, Taiwan

2011/11/1

WPG, the largest semiconductor components distributor in Asia, reported the third quarter 2011 consolidated sales of NT$87.9 billion, operating income of NT$ 1.88 billion and the diluted earnings per share would have been NT$ 0.86. The sales reached NT$250.2 billion, and the diluted earnings per share would have been NT$ 2.62 for the first nine months of 2011.

“The profit growth has been delivered by continues product mix optimization, the sales momentum of smartphone, wireless broadband and tablet PC was good, in addition to original 3C electronics market, we have been cultivating the business in the non-3C areas, such as automobile and industrial electronics, the revenue contribution of these segments have been growing stably to 8%. Q3 2011 Return on Working Capital (ROWC) was 12%, and ROE was 15%,” said Simon Huang, chairman and president.

“Looking ahead, we believe the total sales of the fourth quarter will be between NT$79 billion and NT$ 83 billion, with the growth margin in the range of 5.2%~5.4% and we expect the average operating margin is 1.6%~1.8%,” said Cliff Yuan, chief financial officer.

”WPG has occupied a unique, value-added position in the supply chain, with growth opportunities across many customer segments, end markets and technologies, in the third quarter, we have provided more than 55 application solutions in the fields of automobile electronics (17), consumer electronics (15), computer and peripheral (14), and general (9), focusing on applications of GPS, STB and tablet PC (for more information please visit WPG Tech on-line, https://www.wpgholdings.com/wpgtechonline.php),”stated Scott Lin, vice president of marketing management unit.

Table: WPG Holdings Consolidated Management Financials for the quarter ended Sept 30, 2011. (in brief)

Units：NT$ million

Income Statement (2011/1/1~2011/9/30)		Balance Sheet (2011/9/30)
Item	Amount	Item	Amount
Net Sales	250,243	Current Assets	112,130
Cost of Goods Sold	(236,393)	Accounts receivables	55,089
Gross Profit	13,850	Inventory	39,952
Operating Expenses	(8,486)	Other assets	10,301
Operating Profit	5,364	Total Assets	122,431
Non-op Expenses	(290)	Current Liabilities	79,297
Profit Before Tax	5,073	Accounts payables	32,628
Tax	(898)	LT Liabilities	5,376
Minority & Others	(17)	Total Liabilities	85,282
Profit After tax	4,158	Common Stock	15,839
EPS (Note1)	2.62	Stockholders’ Equity	37,149
EPS (Note2)	22.98
Net book value per share(Note1)	250,243
Net book value per share(Note2)	(236,393)

Note1：Based on weighted average outstanding shares.

Cash flows (2011/1/1~2011/9/30)
Item	Amount
Net Income	4,175
Changes of NWC	(20,685)
Operating cash inflow	(15,393)
Investment cash inflow	1,211
Financial Debt	15,301
Financing cash outflow	12,244
Cumulative translation adjustments	1,495
Net Cash	(116)
Beginning cash balance	7,573
Ending cash balance	7,457

IRcontacts：Cliff Yuan/ Kathryn Chen/ Zoe Peng

Tel：886-2-27068268 ext.85268/ ext.85278/ ext.85262

Email address: ir@WPGholdings.com

Corporate website: www.WPGholdings.com

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Record high! WPG (TSE:3702) Reports Consolidated Third Quarter 2011 Sales of NT$ 87.9 Billion, Operating Income of NT$ 1.88B, Diluted EPS of NT$2.62