Global-Tech Advanced (GAI) research, news, and more from GeoInvesting

Company description

Mon, 25 Mar 2013 04:00:00 GMT

Global-Tech Advanced Innovations Inc., an investment holding company, manufactures and sells consumer electrical products primarily in the United States, Europe, and the People's Republic of China. Its Electronic Components segment produces complementary metal oxide semiconductor camera modules primarily for sale to cellular phone and tablet manufacturers in Mainland China. The company's Electronic Manufacturing Services segment engages in the provision of surface mount technology processing services for printed circuit boards; and assembly services for cellular phone marketers in Mainland China. Its Other segment is involved in the manufacture and sale of disposable medical devices. Global-Tech also engages in the trading of raw materials, and electronic and optical components; and in the provision of consultation services. The company was formerly known as Global-Tech Appliances Inc. and changed its name to Global-Tech Advanced Innovations Inc. in December 2008. Global-Tech Advanced Innovations Inc. was founded in 1963 and is based in Aberdeen, Hong Kong.

Comments & Business Outlook

Mon, 08 Apr 2013 04:00:00 GMT

Third Quarter 2013 Financial Results

Net sales were $20.6 million, compared to $22.3 million for the corresponding quarter in fiscal 2012.
Net income was $0.06 million, or $0.01 per share, compared to a net income of $3.3 million, or $1.09 per share, for the third quarter of fiscal 2012.

John C.K. Sham, the Company's President and Chief Executive Officer, said: �The growth momentum of our CCM business was slowed in the third quarter of fiscal 2013 by the unanticipated placement of purchase orders by some of our key customers for lower cost, lower pixel CCMs rather than higher pixel CCMs. The slowing momentum in our CCM business, together with rapidly rising labor costs in our electronic manufacturing service (EMS) business, adversely impacted our financial results for the third quarter of fiscal 2013.

Mr. Sham continued, As discussed in prior releases and filings, opportunity remains for growth of our CCM business. To that end, significant investments were recently made towards the installation of two chip-on-board (COB) production lines and a CaOB sampling line, both of which we anticipate will expand and enhance our production capacity. A Class 10 clean room has been constructed to compliment the new COB equipment. Thus far, production yields utilizing the new equipment during trial production runs have approached maximum levels. We anticipate that the new equipment will enable the company to expand further into the higher-pixel CCM markets and target new customers. We expect that the expansion of our product lines and capacity will result in our CCM business regaining momentum.

Mr. Sham concluded, �We have implemented cost reduction measures to reduce the operating costs of our EMS business and we remain optimistic that these steps will gradually reverse the decline in profitability of our EMS business. Through these efforts, as well as the pursuit of other options that might become available, we remain committed to returning value to our shareholders.

Comments & Business Outlook

Mon, 17 Dec 2012 05:00:00 GMT

Second Quarter 2013 Results

Net sales for the second quarter of fiscal 2013 were $26.0 million, an increase of approximately 40% when compared to $18.5 million for the corresponding quarter in fiscal 2012.
Net income for the second quarter of fiscal 2013 was $0.2 million, or $0.07 per share, compared to a net income of $1.2 million, or $0.39 per share

John C.K. Sham, the Company's President and Chief Executive Officer, said: “Our electronic components business increased approximately 49% in the second quarter of fiscal 2013, compared to the same corresponding period in fiscal 2012. The growth of this business in the first half of fiscal 2013 has more than offset the loss in net sales resulting from our exit from the home appliance business during this period.”

Mr. Sham continued, “In the first half of fiscal 2013, we incurred costs in excess of $700,000 related to the facilities that formerly housed our home appliance business. We continue to consider and evaluate options to best use these facilities, including the possibility of leasing a portion of the space on a short-term basis."

Mr. Sham concluded, “Following the discontinuation of our home appliance business, our overall business is now mostly focused on the Chinese market. We continue to assess other end uses and applications for our existing technology and operating capabilities to expand our business within the various markets in China, such as the expansion of our EMS business.”

or the second quarter of fiscal 2012.

Comments & Business Outlook

Thu, 27 Sep 2012 04:00:00 GMT

First Quarter 2013 Results

Net sales for the quarter ended June 30, 2012 were $20.5 million, up approximately 54% when compared to $13.3 million for the corresponding quarter in fiscal 2012.
Net income for the first quarter of fiscal 2013 was $0.05 million, or $0.02 per share, compared to a net loss of $1.6 million, or $0.51 per share, for the first quarter of fiscal 2012.

John C.K. Sham, President and Chief Executive Officer, said, “Our electronic components business increased 78% in the first quarter of fiscal 2013 over the corresponding period in fiscal 2012, which nearly offset the absence of sales from our discontinued home appliances segment (based on home appliances sales in the corresponding quarter of fiscal 2012). Gross margins for the quarter were adversely impacted by depreciation charges of approximately $320,000 for the facilities which were formerly utilized for the home appliances business. Additionally, in the first quarter of fiscal 2012, the home appliances business absorbed approximately $0.9 million of G&A expenses, which were reflected in the loss from discontinued operations, whereas those expenses in the first quarter of fiscal 2013 were reflected mostly in selling, general and administrative expenses.”

Mr. Sham continued, “We are pleased with the continued strength of our CCM business, specifically in domestic markets, and expect further improvements in fiscal 2013. We expect to begin incorporating several new products into our existing product lines in fiscal 2013.”

Mr. Sham concluded, “We continue our efforts to develop products for use in certain medical applications which, while not currently generating significant revenues, we remain optimistic will ultimately have a positive impact on our overall business. We are pleased with our successful exit from the home appliance business, which caused no major disruption to our financial position. We are hopeful that we will be able to secure a lessee for the facilities that were previously occupied by our home appliances operations which we anticipate would serve to offset a portion of the Company’s fixed costs.”

Special Dividend

Mon, 13 Aug 2012 04:00:00 GMT

HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced that the Company’s Board of Directors has approved a special cash dividend of $1.00 per share payable on September 5, 2012 to shareholders of record at the close of business on August 22, 2012.

“As previously reported, our business has recognized steady improvements, with a return to profitability in fiscal 2012. We have successfully completed our exit from the home appliance business, which has provided significant relief to the Company’s working capital requirements and presented us with the opportunity to return capital to our shareholders while still maintaining ample resources to support foreseeable growth. We believe that this special dividend is an appropriate way to reward shareholders for their continued support,” said John C.K. Sham, the Company’s President and Chief Executive Officer.

Mr. Sham continued, “We are excited about the future growth potential of our CCM and EMS business segments and expect significant increases in sales in both segments in fiscal 2013. Our exit from the home appliance business was a major stride forward in our transition to a high-technology focused company.”

Mr. Sham concluded, “As we continually assess our current capital structure and how to best deploy our capital, the Company’s board of directors may consider the declaration of additional cash dividends and/or the establishment of a regular dividend. However, the declaration of future dividends will depend upon the Company’s financial position, strategic plans and general business conditions at that time.”

We encourage shareholders to contact their brokers and tax advisors in order to understand the Nasdaq Rules and Regulations as well as relevant tax implications regarding the effect of selling shares of our common stock following the record date on their eligibility to receive the dividend.

Comments & Business Outlook

Tue, 24 Jul 2012 04:00:00 GMT

Financial results for the fiscal year ended March 31, 2012.

Net sales for fiscal 2012 were $69.7 million, an increase of approximately 21% when compared to net sales of $57.5 million for fiscal 2011.
Net income for fiscal 2012 was $1.4 million, or 0.46 per share, compared to a net loss of $4.0 million, or $1.32 per share, in fiscal 2011.
Net sales as reported in the Company's Annual Report on Form 20-F for fiscal 2012 and fiscal 2011 exclude sales for the home appliances segment of approximately $53.9 million and $40.0 million, respectively, which is reflected as a discontinued operation following the Company's exit from the home appliances business in January 2012.

John C.K. Sham, the Company's President and Chief Executive Officer, said: Major strides were made in fiscal 2012 towards the Company's transition and transformation from primarily a manufacturer and exporter of home appliances to the production and supply of electronic components and the provision of electronic manufacturing services (EMS) to China's telecommunications market. We believe these types of business present great opportunities for continued growth and success.

Mr. Sham continued, "Declining margins in the home appliances business required us to diversify and refocus our efforts towards more profitable businesses. This transition has been accomplished thus far through the utilization of internal resources rather than long-term borrowing, which we believe has positioned the Company for future growth."

Mr. Sham concluded, "We are excited about the future prospects of our electronic components and EMS businesses and are in the process of exploring new business opportunities, including disposable medical instruments, which we believe will enhance shareholder value in the long term."

	Fiscal Year Ended March 31,
		2008			2009			2010			2011			2012
		(In thousands, except for per share data)
Statement of operations data:
Net sales		$	40,172		$	36,582		$	48,040		$	57,469		$	69,653
Cost of goods sold			(36,183	)		(35,098	)		(39,722	)		(50,403	)		(59,009	)

Gross profit			3,989			1,484			8,318			7,066			10,644
Selling, general and administrative expenses			(8,042	)		(7,588	)		(8,353	)		(11,318	)		(10,612	)
Other operating income (loss), net			(143	)		1,674			179			1,137			28

Operating profit (loss)			(4,196	)		(4,430	)		144			(3,115	)		60
Interest income, net			1,727			535			277			537			96
Other income (expense), net			(2,018	)		(532	)		310			370			1,116
Loss on dissolution of a subsidiary			—			(1,029	)		—			—			—
Gain on disposal of subsidiaries			—			158			—			—			—
Share of losses of jointly-controlled entities			(346	)		—			—			—			—

Income (loss) from continuing operations before income taxes			(4,833	)		(5,298	)		731			(2,208	)		1,272
Income tax expense			(1,597	)		(421	)		(389	)		(204	)		(1,229	)

Income (loss) from continuing operations			(6,430	)		(5,719	)		342			(2,412	)		43
Income (loss) from discontinued operations, net of taxes			2,003			(122	)		3,124			(1,776	)		1,374

Net income (loss) before non-controlling interests			(4,427	)		(5,841	)		3,466			(4,188	)		1,417
Non-controlling interests			—			—			—			175			(6	)

Net income (loss)		$	(4,427	)	$	(5,841	)	$	3,466		$	(4,013	)	$	1,411

Basic and diluted earnings per share:
Income (loss) from continuing operations		$	(2.10	)	$	(1.87	)	$	0.11		$	(0.74	)	$	0.01
Income (loss) from discontinued operations			0.65			(0.04	)		1.03			(0.58	)		0.45

Basic and diluted net income (loss) per share of common stock		$	(1.45	)	$	(1.91	)	$	1.14		$	(1.32	)	$	0.46

Basic and diluted weighted average number of shares of common stock			3,057			3,051			3,038			3,039			3,039

Comments & Business Outlook

Mon, 09 Apr 2012 04:00:00 GMT

Third Quarter 2012 Results

Net sales for the third quarter of fiscal 2012 were $44.2 million, an increase of approximately 81% when compared to $24.4 million for the corresponding quarter in fiscal 2011.
Net income for the third quarter of fiscal 2012 was $3.3 million, or $1.09 per share, compared to a net loss of $1.5 million, or $0.48 per share, for the third quarter of fiscal 2011.

John C.K. Sham, the Company's President and Chief Executive Officer, said: “Our third quarter is typically our strongest and we were pleased with the improved financial performance in several areas of our business. Improved results in the third quarter of fiscal 2012 were due in part to sales increases and improved profit margins in the Company’s three business segments, as well as declining commodity prices in the second half of calendar 2011 and the easing of inflationary pressures in China. These factors, while contributing positively to the Company’s third quarter operating results, are likely to change in the near future.”

Mr. Sham continued, “As previously announced, we are nearing completion of our exit from the home appliance business and, with the cooperation from our customers, were able to manufacture additional inventory during the transitional period to ensure a smooth phase out process for both the Company and its customers. As stated above, the increase in purchase orders from customers seeking to increase inventory positively impacted our financial results for this quarter.”

Mr. Sham concluded, “Our assets, particularly our liquid resources, continue to increase and, as of December 31, 2011, on a per share basis, far exceed the current trading price of the Company’s stock. We believe we can use resources previously dedicated to the home appliance segment more effectively by reallocating these resources and the efforts of the Company’s management and employees towards business opportunities that we believe will provide better margins and positive returns on investment.”

Comments & Business Outlook

Tue, 17 Jan 2012 05:00:00 GMT

Second Quarter 2012

Net sales for the second quarter of fiscal 2012 were $33.8 million, an increase of 35% when compared to $25.0 million for the corresponding quarter in fiscal 2011.
Net income was $1.2 million, or $0.39 per share, compared to a net loss of $0.9 million, or $0.29 per share, for the second quarter of fiscal 2011.

John C.K. Sham, the Company's President and Chief Executive Officer, said: "While net sales improved in the second quarter and first half of fiscal 2012, our year to date gross profit margins were less than margins in fiscal 2011 as costs of labor, materials and utilities continued to increase. Although commodity prices have recently eased, energy and labor costs continue to rise, which must be addressed as part of our plans to improve profitability."

Mr. Sham continued, "As previously announced, we are nearing completion of our exit from the home appliance business which will allow us to explore new business opportunities by focusing assets and personnel towards business activities which we believe will create short- and long-term value for our shareholders."

Mr. Sham concluded, "Our cash less short-term debt position has improved significantly since the end of fiscal year 2011 and, as of September 30, 2011, now exceeds $13.00 per share. We remain committed to the use of company resources to explore and pursue business opportunities that we believe have a good probability of success."

Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs) and floor care products. The primary focus of its subsidiaries is to develop and market high-quality products for the communications industry in China and export such products to markets in North America, Europe, and other countries throughout the world.

Investor Alert

Fri, 16 Sep 2011 04:00:00 GMT

HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced that the Company received a letter dated September 12, 2011 from The Nasdaq Global Market stating that based upon its review of the Company’s market value of publicly held shares (MVPHS) for the last 30 consecutive business days, the Company’s common stock had not maintained a minimum market value of publicly held shares of $5 million as required for continued listing on The Nasdaq Global Market by Listing Rule 5450(b)(1)(C).

The notification letter has no effect at this time on the listing of the Company’s common stock on The Nasdaq Global Market. The Company’s common stock will continue to trade on The Nasdaq Global Market under the symbol “GAI.”

The notification letter states that the Company will be afforded 180 calendar days, or until March 12, 2012, to regain compliance with the MVPHS requirement. In order to regain compliance, the Company must maintain a MVPHS of at least $5 million for a minimum of ten consecutive business days.

Liquidity Requirements

Fri, 02 Sep 2011 04:00:00 GMT

We anticipate that cash from operating activities and our quick assets should be adequate to satisfy our capital requirements for at least the next two years.

Comments & Business Outlook

Wed, 30 Mar 2011 04:00:00 GMT

Third Quarter Results:

Net loss for the third quarter of fiscal 2011 was $1.5 million, or $0.48 per share, compared to a net income of $0.7 million, or $0.24 per share, for the third quarter of fiscal 2010

John C.K. Sham, the Company's President and Chief Executive Officer, said: "Despite increased revenues from our electronic component and electronic manufacturing service businesses when compared to the prior fiscal period, net results remain affected by the continued weakness in our floor care business and margin pressures, resulting from continuing inflation in China and significant increases in the cost of labor."

Mr. Sham concluded, "We remain optimistic that our continuing efforts to further develop and expand our product offerings in China, together with improved productivity, will ultimately lead to more favorable financial results."

Comments & Business Outlook

Thu, 06 Jan 2011 05:00:00 GMT

Net sales for the second quarter of fiscal 2011 were $25.0 million, compared to $29.0 million for the corresponding quarter in fiscal 2010.

Net loss for the second quarter of fiscal 2011 was $0.9 million, or $0.29 per share, compared to a net income of $1.6 million, or $0.51 per share, for the second quarter of fiscal 2010.

John C.K. Sham, the Company's President and Chief Executive Officer, said: “While revenues from our electronic component and electronic manufacturing service (EMS) businesses increased when compared to both the first quarter in fiscal 2011 and the corresponding quarter in fiscal 2010, these increased revenues were insufficient to offset the continued decline in net sales of our floor care business.”

Mr. Sham continued, “Our overall gross profit margin remains weak as operating costs, particularly labor and energy costs, continue to increase. This increase in costs was attributable, in part, to rising inflation that has been taking place in China. Additionally, our fixed cost absorption rate increased due to declining activity. Accordingly, the Company must continue to refine its focus on productivity and efficiency."

Mr. Sham concluded, “We do not expect significant improvements in our floor care business during the remainder of fiscal 2011. Accordingly, we are increasing our efforts to incorporate proprietary elements into our electronic component business and improve efficiencies in our EMS business in an attempt to position and strengthen the Company’s prospects for growth in these businesses in the near future. The Company’s continued emphasis on the expansion of our business in China remains vital to long-term growth."

Comments & Business Outlook

Tue, 23 Nov 2010 05:00:00 GMT

Net sales for the quarter ended June 30, 2010 were $25.8 million, compared to $25.7 million for the corresponding quarter in fiscal 2010.

Net income for the first quarter of fiscal 2011 was $0.8 million, or $0.26 per share, compared to a net income of $1.2 million, or $0.38 per share, for the first quarter of fiscal 2010. `

While there was less than a 1% increase in net sales, first quarter results revealed significant changes in sales trends when compared to the prior fiscal year. In the first quarter of fiscal 2011, net sales of home appliances declined 19%, electronic components increased 19% and electronic manufacturing service (EMS) revenues more than doubled, compared to corresponding net sales in the first quarter of fiscal 2010. In addition, sales to Asia markets in the first quarter of fiscal 2011 represented 48% of total net sales.

John C.K. Sham, President and Chief Executive Officer, said, “Our financial results in the first quarter of fiscal 2011 were indicative of the changes taking place within our business segments. While our electronic component and EMS businesses resumed their growth and maintained profitability, operating margins in our home appliance business continued to decline as a result of increases in material cost and wage inflation. The trend of increasing raw material cost and decreasing margins are threatening the continued viability of our home appliance business.”

Mr. Sham continued, “As we continue to diversify and refocus our efforts on the telecommunications business in China, weakening of the export markets we have been serving is having less of an impact on our overall business prospects. We plan to place less emphasis on our home appliance business as we continue to expand our capabilities and sales efforts on the EMS and electronic component businesses.”

Mr. Sham concluded, “Absent a recovery in the United States markets, we expect operating margins in our home appliance business will continue to decline as costs continue to increase and volume continues to decrease. However, we expect continued growth in the electronic component and EMS businesses, which may or may not be sufficient to offset ongoing weaknesses in the appliance business in the short term.”