Lite-On Semiconductor Corp. (Lite-On) reported financial results for the third quarter of 2006. Revenues for the third quarter of 2006 were NT $3.1 billion, an increase of 8.9% from the third quarter of 2005. Gross profit and margin were NT $484 million and 15.5%, respectively, compared to NT $356 million and 12.4% for the same period in 2005, and NT $458 and 15.4% in Q2 2006.
Operating income was NT $151 million in the third quarter 2006, which represented a 4.8% operating margin, compared to NT $63 million and a 2.2% margin for the same period in 2005. Net income was NT $266 million, a decrease of 60.5%, compared to NT $674 million for the third quarter of 2005, which included a $444 million after tax gain on the sale of 750,000 shares Diodes, Inc stock. Basic earnings per share was NT $0.63 in the third quarter 2006, versus NT $1.78 in the third quarter of 2005. Adjusted earnings per share was NT $0.63 in the third quarter 2006 versus NT $1.66 in the third quarter of 2005.
"Lite-On Semiconductor posted another quarter of solid results in the third quarter of 2006, with continued improvement in our gross margin and operating margin, reflecting our shift towards higher value-added products," commented M.K. Lu, President of Lite-On Semiconductor. "More importantly, we continued to make strong progress in our strategic initiatives. We had our first win with a tier-one handset manufacturer, with our CCM products qualified for the next generation of mobile phones starting shipment in the 4th quarter. We experienced very strong design win activity for our analog and power management products. And we prepared for the launch of an important new product in the fourth quarter based on our proprietary sensor technology. Taken together, these factors cause us to feel very positive about the Company's prospects for growth and enhanced profitability in 2007."
Revenues for the nine months ended on September 30, 2006 increased by 22.9% to NT $8.6 billion, versus NT $7.0 billion for the same period in 2005. Gross profit and gross margin were NT $906 million and 10.5%, respectively, for the nine months of 2006, versus NT $379 million and 5.4% for the same period in 2005. Net income was NT $863.6 million during the nine months ended September 30, 2006, compared to NT $1,036 million during the same period in 2005. Net income for the first nine months of 2006 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. The image, discrete, and foundry divisions accounted for 48%, 37%, and 14% of total revenues, respectively, for the first nine months of 2006.
