Lite-On Semi Revenue and Net Income Up, Margins Down in 2005
For the year ended December 31, 2005, Lite-on Semiconductor Co. reported total revenues of NT $10.8 billion, an increase of 22.8% from 2004. Gross profit and margin were NT $1.8 billion and 16.5%, respectively, compared to NT $1.9 billion and 21.6% in 2004. Operating income and margin were NT $489 million and 4.6%, respectively, compared to NT $1.1 billion and 12.5% in 2004. Net income was NT $1.2 billion, or NT $3.13 per basic share, compared to NT $983 million, or NT $3.01 per basic share, in 2004. Net income includes a $444 million after tax gain on the sale of 750,000 shares Diodes, Inc. stock in the third quarter of 2005.
"Our strong revenue growth was driven by growth in our CCM products. We have made good progress in improving operations at the 6 inch fab and we hope to break even on these operations in the second quarter of 2005," commented M.K. Lu, President of Lite-On Semiconductor. "In the meantime, we have several new products on the horizon which should positively influence our margin in the year ahead, such as our fingerprint identification product. More importantly, we will begin shipping our analog IC product in the second half of 2006."
Financial results for the year ended December 31, 2005 include results from the company's interest in Anachip Corp., a fabless chip design house acquired in conjunction with Antek Semiconductor in June 2005. On January 10, 2006, the company sold its 62% stake in Anachip to Diodes, Inc. for NT $620 million, after determining that Anachip's operations were not consistent with its move into analog ICs and power management solutions. In fiscal 2005, Anachip accounted for approximately $1.0 billion and $54 million, respectively, of the company's revenue and operating income.
Cash flow from operations for the year ended December 31, 2005 was NT $822 million compared to NT $1.3 billion in 2004. For the year ended December 31, 2005, the image, discrete and foundry divisions accounted for 56%, 37% and 7% of total revenues, respectively.
"Fiscal 2005 was an important year for our company. The strategic acquisition of Antek provided us with the basis for our move into the power management market. Our CCM product gained greater acceptance in the marketplace, and we expect additional growth in 2006. We also developed several new products which we expect to ship in the second half of 2006. Our top priority in the coming year is to increase our revenues, but we also hope to see some improvement in gross margin. We will accomplish this by bringing the 6 inch fab to break-even and improving our product mix with higher margin analog and power management solutions," concluded M.K. Lu.