USI Reports 2009 Third-Quarter Consolidated Financial Results

*Preliminary unaudited numbers are subject to change without notice
**General Accounting Standard No.10 applied

Highlights of Operations  

• Total net revenue for the quarter was NT$13,886 million, quarter-over-quarter 16%, year-over-year -17%. Revenue contributions were NT$3,353 million from Computer & Peripherals segment, sequentially increasing 20%,  or annually decreasing 29%, NT$3,393 million from Communications Products, sequentially increasing 27%,  dropping 19% annually, NT$944million from Network Storage & Servers, sequentially lifting 2%, annually dropping 45%, NT$3,917 million from Electronics Packaging & EMS, climbing 3% comparing with Q2’09, annually slid 5% and NT$2,280 million from Industrial & Automotive Segment, sequentially escalating 27%, or 13% increase year-over-year.
• Gross margin for the quarter was NT$1,688 million, climbing 24%, comparing with Q2’09, or 3% year-over-year. Gross margin rate increased from 11.3% in the prior quarter to 12.2%, mainly due to better product mix, cost reduction and efficiency improvement.
• Operating income in Q3’09 was NT$665 million and the operating margin of 4.8% improved from 3.4% last quarter or from 2.4% in Q3’08. Comparing with the same period of last year, operating expenses lowered 17%, mainly due to expense control and optimization.
• Non-operating income contributed NT$54 million for the quarter. Major non-operating item was from non-recurring income.
• Net income of NT$605 million, or NT$0.57 per share, improved by 73% comparing with Q2’09’s or 163% year-over-year. The causes were as mentioned above.
• For the outlook of 4th quarter of 2009, the Company expects to see flat revenue growth for the period. Even though that worldwide economy has been more stable than it was in the prior quarters, the Company continues to take a conservative stand and make decisive actions in product offering and cost optimization. The Company is committed to expand competitive advantages over the industry in terms of revenue growth, efficiency optimization and technical capabilities to enhance profitability in the future.

About USI
Universal Scientific Industries Co., Ltd, established in 1976, is a global leading DMS (ODM/EMS) company.

USI not only provides manufacturing service, but also aggressively cultivates R&D talents, and persistently invests on the development of Handheld Devices, Wireless Networking Products, Car Electronics, Storage, Industrial PC, Server, Work Station and their Motherboard.

Combining its advanced SiP techniques, USI has built its unique competitive edge to provide customers time-to-market, high quality, and high value-added and most cost competitive total services.