ACL Semiconductors Inc. Reports Third Quarter 2012 Financial Results
November 19, 2012 --
HONG KONG, Nov. 19, 2012 /PRNewswire/-- ACL Semiconductors Inc. (ACLO.OB) ("ACL"), an integrated China-based designer, manufacturer and distributor of advanced technologies spanning smartphone and semiconductor components, reported unaudited financial results for the quarter ended September 30, 2012.
Mr. Chung-Lun Yang, Chairman and Chief Executive Officer of ACL Semiconductors Inc., commented, "We have strengthened our product design, manufacturing and distribution capabilities with the recent acquisition of USmart, an integrated smartphone component supplier to OEM customers. ACL remains active in the semiconductor components and supply market through ATMD, our joint venture with Tomen Devices."
Mr. Yang concluded, "We believe that we are well positioned to leverage our strong sales and distribution network serving customers across mainland China and penetrating multiple emerging markets inclusive of India, Indonesia, Russia and select countries in Africa. We have a robust R&D team focused on delivering divergent solutions, inclusive of software platforms and other components, to all smartphone buyers."
On September 28, 2012, the Company acquired Jussey, a company incorporated in British Virgin Islands, which owns 100% equity interest in eVision Telecom Limited ("eVision"), a Hong Kong incorporated company, and 80% equity interest in USmart Electronic Products Limited ("USmart"), a Hong Kong incorporated company, which wholly owned Dongguan Kezheng Electronics Limited ("Kezheng"), a wholly foreign-owned enterprise ("WFOE") organized under the laws of the PRC. Through this acquisition, the Company has diversified its product portfolio and customers' network, obtained design and manufacturing capabilities, and tapped into the expanding telecommunication industry with access to the 3G baseband licenses.
Third Quarter 2012 Results
Net revenue for the quarter ended September 30, 2012 was $49.5 million, as compared to revenue of $74.0 million for the same period last year. Third quarter 2012 net sales decreased due to the migration of the Samsung products business to ATMD, a joint venture formed in April 2012 in which ACL retained a 30% stake, as well as the reduced demand in the DRAM market.
Gross profit for the third quarter 2012 was $862,000, as compared to $2.9 million in the same period of 2011. Gross profit margin for the third quarter 2012 was 1.7%, compared to a gross profit margin of 5.0% for the third quarter 2011. Reduced average selling prices of DRAM in the third quarter 2012 have impacted gross margin and the low gross profit margin.
Operating expenses for the third quarter 2012 were $1.2 million, down from $1.5 million for third quarter 2011. The decrease was mainly due to lower directors' remuneration and entertainment expenses. Other income for the third quarter 2012 was $1.5 million, up from other expenses of $90,000 for the same period last year. The year-over-year increase in other income was mainly due to the write back in the 2012 quarter of bad debt provision of $1.6 million.
Net income for the quarter ended September 30, 2012 was $1.2 million, compared to a net income of $1.9 million in the same period last year. Earnings per diluted share were $0.04 for the quarter ended September 30, 2012, compared to earnings per diluted share of $0.07 in the same period last year.
About ACL Semiconductors Inc.
ACL Semiconductors is an integrated China-based designer, manufacturer and distributor of advanced technologies spanning smartphone and semiconductor components. Through the September 2012 acquisition of USmart Electronics Products, ACL has become a one-stop solution provider of smartphone components serving OEM customers spanning local China mobile phone companies and established telecom carriers. Following the formation of the ATMD joint venture with Tomen Devices in April 2012, ACL has retained a 30% stake in the business focused on supplying Samsung semiconductors and LCD products in Greater China.
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, the process of the new joint venture with Tomen, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings.