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Better Than Expectation on Operating Margin, WPG (TWSE:3702) Reports Its Unaudited Result of First Quarter, EPS was NT$0.63 QoQ +9.3%.

 2013-05-03

Better Than Expectation on Operating Margin, WPG (TWSE:3702) Reports Its Unaudited Result of First Quarter, EPS was NT$0.63 QoQ +9.3%.

 2013/05/03

 

 

      Benefited from increased demand of emerging markets combined with smartphone and tablet related components became major part of shipments, WPG, the largest distributor of semiconductor components in Asia, announced its first quarter consolidated sales reached NT$86.5 billion, near the high side of first quarter’s NT$82~87 billion guidance. Gross Margin also reached 4.87%, near the high side of 4.7%~4.9% guidance. Operating Margin was 1.59%, exceeded the high side of 1.3%~1.5% expectation. Unaudited net income of first quarter was NT$1.04 billion and NT$0.63 per share.

 

      The profit growth has been delivered by domestic demand of emerging markets. Contribution of 3C products such as low to mid end smartphone, tablet, wireless broadband and STB were continued growing. Non-3C segments’ contribution such as automobile, medical and industrial electronics remained healthy. Key financial indicators: Return on Working Capital (ROWC) and ROE was 9.1% and 10.6% respectively.

 

      Looking ahead, Management guides the total sales of second quarter 2013 will be between NT$96 billion and NT$101 billion, with the gross margin in the range of 4.5%~4.7% and the operating margin between 1.5%~1.7%.

 

      In the first quarter of 2013, around 38 application solutions were provided in the fields of cell phone / communication (15), Industrial (9), computer / peripheral (including tablet) (7), and consumer electronics (7), focusing on applications of smart phone, STB, e-wallet, surveillance, tablet and LED lighting.

 

 

 

 

Table: WPG Holdings Consolidated Management Financials for the quarter ended March 31, 2013. (in brief)

                                                                                                                                                                          Units:NT$ million

Income Statement (2013/1/1~2012/3/31)

 

Balance Sheet (2013/3/31)

Item

Amount

 

Item

Amount

Net Sales

86,564

 

Current Assets

111,037

Cost of Goods Sold

(82,348)

 

Accounts receivables

60,935

Gross Profit

4,216

 

Inventory

36,417

Operating Expenses

(2,842)

 

Other assets

14,056

Operating Profit

1,374

 

Total Assets

125,093

Non-op Expenses

(99)

 

Current Liabilities

78,175

Profit Before Tax

1,275

 

Accounts payables

36,740

Tax

(235)

 

LT Liabilities

5,867

Minority & Others

0

 

Total Liabilities

84,950

Profit After tax

1,040

 

Common Stock

16,557

EPS (Note)

0.63

 

Stockholders Equity

40,144

Net book value per share(Note)

24.21

 

Note:Based on weighted average outstanding shares.

 

 

Cash flows (2013/1/1~2013/3/31)

Item

Amount

Net Income

1,275

Change in NWC

(1,027)

Operating cash inflow /(outflow)

(1,229)

Investment cash inflow /(outflow)

(516)

Change in Financial Debt

(410)

Financing cash inflow /(outflow)

(387)

Effect on changes of consolidated subsidiaries

(10)

Foreign Exchange

997

Net Cash

(1,145)

Beginning cash balance

8,872

Ending cash balance

7,728

 

IR contacts:Cliff Yuan/ Kathryn Chen / Zoe Peng

Tel:886-2-7712-5268 / 886-2-7712-5278 / 886-2-7712-5262

Email address: ir@WPGholdings.com

Corporate website: www.WPGholdings.com