Lite-On Semiconductor Reports First Quarter 2006 EarningsJuly 05, 2006 by Jeff Shepard
Lite-On Semiconductor Corp. ("Lite-On") reported financial results for the first quarter of 2006.
Revenues for the first quarter of 2006 were NT $2.7 billion, an increase of 41.9% from the first quarter of 2005. Gross profit and margin were NT $409 million and 15.0%, respectively, compared to NT $363 million and 18.8% for the same period in 2005. Operating income was NT $112 million, which represented a 4.1% margin, compared to NT $153 million and a 7.9% margin for the same period in 2005. Net income was NT $382 million, an increase of 122.1%, compared to NT $172 million for the first quarter of 2005. Basic earnings per share were NT $0.97, up from NT $0.50 for last year. Net income includes an after-tax gain of NT $259 million from the sale of Lite-On's 62% stake in Anachip Corp. to Diodes, Inc. on January 10, 2006.
"Our 42% top line growth in the first quarter of 2006 was driven by strong results in the color CIS business as well as the growing acceptance, and corresponding double digit revenue increase, of our CCM product in the marketplace," commented M.K. Lu, President of Lite-On Semiconductor. "Sales of our new foundry products are gaining traction, generating approximately NT $335 million in first quarter revenues. Our discrete division's sales in the first quarter improved 16% year over year, with revenue of NT $100 million. While gross margin was down on a year over year basis, it improved 150 basis points from the fourth quarter of 2006, reflecting improved operations in our 6-inch fab."
Cash flow from operations for the first quarter of 2006 was NT $280 million, compared to NT $146 million for the first quarter of 2005. The image, discrete, and foundry divisions accounted for 50.2%, 37.6%, and 12.2% of total revenues, respectively.
Lu concluded, "Looking forward to the rest of the year, we expect continued revenue growth as we continue to increase our share in the discrete market. We also expect some additional growth in CCM shipments. Our 6-inch fab reached the break-even point in April 2006 and we continue to work towards improving margins by developing higher margin products such as our fingerprint identification product, analog IC product, and analog and power management solutions."