USI Reports 2009 Third-Quarter Consolidated Financial Results

USI Reports 2009 Third-Quarter Consolidated Financial Results
Issued on : 2009/10/22
Nantou, Taiwan – Universal Scientific Industrial Co., Ltd. (TSE: 2350) (“USI”, the “Company” or “We”), a leading global design and manufacturing service company, announced its consolidated financial results* for Q3’2009.
Consolidated net revenue amounted to NT$13,886 million for the quarter, representing a sequential 16% increase, and dropping 17% year-over-year. Net income increased 73% to NT$605 million, comparing with NT$349 million in Q2’2009. Earnings per share was NT$ 0.57 for the quarter.  
Consolidated Financial Results

Unit in NT$M, except EPS

Q3 2009

Q2 2009

Q3 2009**

QoQ

YoY

Revenues

1,3886

100%

11,978

100%

16,741

100%

16%

-17%

Gross Margin

1,688

12.2%

1,358

11.3%

1632

9.7%

24%

3%

Operating Margin

665

4.8%

406

3.4%

407

2.4%

64%

63%

Non-Op Income(Loss)

54

0.4%

22

0.2%

(70)

-0.4%

147%

n/a

Pre-Tax Income

720

5.2%

428

3.6%

337

2.0%

68%

113%

Net Income

605

4.4%

349

2.9%

230

1.4%

73%

163%

EPS(NT$)

0.57

 

0.33

 

0.21

 

 

 

*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.

USI Announced Sep 2009 Revenues

USI Announced Sep 2009 Revenues
 
Nantou, Taiwan, Oct. 5th, 2009 – Universal Scientific Industrial Co., Ltd. (TSE: 2350) (“USI”, the “Company” or “We”), a leading global design and manufacturing service (DMS) company, announced its consolidated net revenue for Sep., 2009.  Consolidated monthly net revenue in September amounted to NT$5,134 million, up 15% sequentially and down 19% year-over-year. On a non-consolidated basis, monthly net revenue was NT$2,259 million, up 8% sequentially and up 2% year-over-year.

Revenue performances by major product line (See Note for business line re-classification) :

  1. Computers & Peripherals (Revenue Weight: 24%): Net revenue in September amounted to NT$1,248 million, up 15% sequentially and down 34% year-over-year.
  2. Electronics Packaging & EMS (Revenue Weight: 27%): Net revenue in September was NT$1,393 million, up 6% sequentially and down 13% from the same period last year.
  3. Communications (Revenue Weight: 24%): Net revenue in September amounted to NT$1,215 million, up 13% sequentially and down 19% from the same period last year.
  4. Network Storage & Servers (Revenue Weight: 7%): Net revenue in September amounted to NT$364 million, up 24% sequentially and down 46% year-over-year.
  5. Industrial & Automotive Products (Revenue Weight: 18%): Net revenue in September for the product line was NT$914 million, up 32% sequentially and up 34% year-over-year.
Consolidated and Stand-alone Monthly Net Revenues (Unaudited)*
(NT$ Million) 
Sep.
2009
Aug.
2009
Sep.
2008
MoM
Change
YoY
Change
Jan-Sep
2009
Jan-Sep
2008
YoY
Change
Worldwide
5,134
4,452
6,346
15%
-19%
36,547
51,641
-29%
USI Taiwan
2,259
2,098
2,208
8%
2%
15,920
20,108
-21%

Consolidated net revenues include, in addition to net revenues of USI Taiwan, net revenues of wholly-owned subsidiaries, including USI Electronics (Shenzhen), USI (Shanghai) Limited Corp, USI Japan, USI de Mexico, USI Manufacturing Services, USI @Work, USI UK Office, and Uabit. 

Revenue Breakdown by Major Product Line (Unit: NT$ Million)
Revenues
Computers & Peripherals
Electronics Packaging & EMS
COM
Network Storage & Servers
Industrial & Automotive Products
Total
Sep., 2009
1,248
1,393
1,215
364
914
5,134
Revenue  Weight %
24%
27%
24%
7%
18%
100%
Sep., 2008
1,884
1,604
1,507
670
682
6,346
Revenue  Weight %
30%
25%
24%
11%
11%
100%
Jan-Sep 2009
25%
28%
23%
8%
15%
100%
Full-Year 2008
30%
25%
23%
11%
12%
100%
Full-Year 2007
34%
26%
17%
12%
12%
100%

Note: Starting in June 2007, USI re-classified product lines in consideration of better product orientation and rational resource allocation. Major products for each product line are outlined as follows:
Computers & Peripherals : Motherboards for notebook & desktop PC, port replicator, Mobile PC, abit, Technical Services.
Electronics Packaging & EMS : Control boards for flat panel devices, EMS, Electronics Packaging Service.
Communications : Wi-Fi, Bluetooth, WiMAX,ADSL, SiP and etc…
Storage & Servers : Network storage, server products and NAS system.
Industrial & Automotive Products : Smart handheld devices, point-of-sale systems, automotive electronics, in-car infotainment systems.

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.

WiMAX revenues expected to grow 100 percent this year

Taipei, Taiwan, June 2, 2008 – Universal Scientific Industries Co., Ltd (USI)(TSE: 2350), the world’s leading design and manufacturing service (DMS) company, is set to showcase a comprehensive range of WiMAX (Worldwide Interoperability for Microwave Access) devices at the WiMAX Expo in Taipei.

Highlights of the showcase will include WiMAX products, WiFi miniaturized technology, and its own developed mobile Internet devices (MIDs).

The leading Taiwanese company is expecting to usher in a good WiMAX year, aiming to report 100 percent growth in its WiMAX revenues compared to last year.

The bullish view is attributed to USI Shanghai, its Shanghai subsidiary which is fully committed to the research and development of USI’s full range of WiMAX products. This will pave way for the company to promote its solutions into the supply chain of global telecom companies.

The company is also in talks with a number of Taiwanese firms, which have obtained WiMAX licenses, for possible business partnerships.

Meanwhile, USI will continue its shipments of WiMAX products to existing clients, mainly consist of emerging markets in Asia and Africa; at the same time working toward clinching new deals from telecom operators in Europe and the US.

Statistics from US-based researcher In-Stat show that global WiMAX chipset market is projected to reach approximately 21 million units in 2011, a leap from 300,000 chipset units in 2006.

Eyeing the great potential, vendors from all over the globe have invested billion of US dollars in developing WiMAX technologies, products and equipments. With the technology’s supply chain gradually getting in place, WiMAX industry is expected to usher in exponential growth in the future.

Riding on the success of its WiFi solutions, USI is applying WiMAX technology on a wider range of mobile applications, including MIDs, ultra-mobile portable PCs (UMPCs), notebooks and handsets.

A noteworthy case is its own developed killer product MID, which has taken mobile Internet to the next level by blending in an array of features including WiMAX, WiFi, Bluetooth and global positioning system.

“We have started to ship WiMAX 16d CPE products last year to clients mainly in the emerging markets,” said Albert Liu, USI General Manager of Wireless Product Business Unit.

Also, its 16e mobile devices are in the midst of compatibility tests with major base station operators around the globe. They are expected to pass such tests this year and be awarded WiMAX Wave2 certification, which then will open the doors for USI in sealing more deals.

As the WiMAX fever has caught up across the globe, telecom operators in Europe and the US have opted to build their infrastructure based on the standard.

In Taiwan, the government has launched its “M-Taiwan” project – which strives to offer wider wireless Internet coverage and further develop its telecommunication industry – and give out licenses to players to operate WiMAX services.

USI has begun its close collaboration with these licensees to help facilitate the launch of their respective services.

Looking forward, USI expects to forge a closer tie with major telecom operators in Europe and the US. More breakthroughs in the development of its WiMAX 16d and 16e will also boast its overall WiMAX revenues by more than 100 percent this year over the last.

USI, the world’s top three WiMAX solution provider, is participating in the WiMAX Expo in Taipei World Trade Center Hall 2, from June 2 to June 6.

The company is showcasing full series of products including 802.11n, mobile WiMAX 16e, WiMAX 16d CPE and MIDs. Visitors are invited to witness USI’s achievement in the mobile communication products at booth S4-2.

About USI (Universal Scientific Industries Co., Ltd)
Established in 1976, Universal Scientific Industrial Co., Ltd. (USI) is a global leading design and manufacturing service (DMS) company. With its design-to-distribution total solutions and module-to-systems product offerings, USI is recognized as the strategic DMS partner for global IT and communications brands in the 4C (Computing, Communications, Consumer Electronics and Car Electronics) industries. Its solutions integrate core technologies of computing, wireless communications and video/audio processing, therefore offering high quality, value-added and competitively priced products.

In 1999, USI became a member of the Advanced Semiconductor Engineering Group. By combining resources from the ASE Group, USI is able to provide excellent solutions for its customers. For more information, please visit www.usi.com.tw.

USI Announced May 2008 Revenues

Nantou, Taiwan, June 5, 2008 – Universal Scientific Industrial Co., Ltd. (TSE: 2350) (“USI”, the “Company” or “We”), a leading global design and manufacturing service (DMS) company, today announced its consolidated net revenues for the month ended May 31, 2008.

Consolidated monthly net revenues in May amounted to NT$ 5,721 million, up 7% sequentially and 15% year-over-year. On a non-consolidated basis, monthly net revenues amounted to NT$ 2,304 million, up 4% sequentially but down 21% year-over-year.

Revenue performance by major product lines (See Note for business line re-classification) :

1. Computers & Peripherals (Revenue Weight: 30%): Net revenues in May amounted to NT 1,743 million, up 6% sequentially but down marginally year-over-year.
2. Electronics Packaging & EMS (Revenue Weight: 26%): Net revenues in May amounted to NT 1,496 million, up 2% sequentially and 19% from the same period last year.
3. Communications(Revenue Weight: 20%): Net revenues in May amounted to NT 1,136 million, up 6% sequentially and 60% from the same period last year.
4. Network Storage & Servers (Revenue Weight: 11%): Net revenues in May amounted to NT 631 million, up 21% sequentially and 10% year-over-year.
5. Industrial & Automotive Products (Revenue Weight: 12%): Net revenues in May amounted to NT 715 million, up 16% sequentially and 7% year-over-year.