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WPG (TSE:3702) Reports First-Quarter Operating Margin reached 1.85%, Exceeded Expectations. First-Quarter Operating Income Set Single Quarter Record High of NT$2 Billion. EPS was NT$0.84.

 2015-05-05

WPG (TSE:3702) Reports First-Quarter Operating Margin reached 1.85%, Exceeded Expectations. First-Quarter Operating Income Set Single Quarter Record High of NT$2 Billion. EPS was NT$0.84.

 

2015/5/5

 

Benefited from growing shipments of mobile phone, communication-related components, automotives, industrial electronics, and cloud applications, WPG, the largest distributor of semiconductor components in Asia, announced Its first-quarter consolidated sales reached NT$108.14 billion. Under productivity improvement and effective expense control, operating expenses to sales ratio declined continuously and operating margin reached 1.85%, exceeded expectations. First-quarter operating income set single quarter record high of NT$2 billion. Net income of first quarter was NT$1.398 billion. EPS was NT$0.84 per share.

 

The profit growth has been delivered by continued growing demand of 3G and 4G mid to high-end and low-end smart phone, tablet, wireless broadband, cloud servers and televisions. Non-3C segments’ contribution such as automotives and industrial electronics remained healthy. With increased profit and improving operating efficiency, operating cash inflow of first quarter was NT$5.947 billion. Key financial indices: Return on Working Capital (ROWC) and ROE was 9.7% and 12.3% respectively.

 

Management guides the total sales of second quarter 2015 will be between NT$117 billion and NT$122 billion, with the gross margin in the range of 4.2%~4.5% and the operating margin between 1.6%~1.8%.

 

In the first quarter of 2015, 72 application solutions were provided in the fields of Smart phone (13), Computer (11), Wearable devices (11), Smart Home (9), Automotive (9), Lighting (8), Security (6), Industrial (3), Energy (2), focusing on applications of NFC, OIS for mobile phone, tablet, UV Sensors, light sensor, wearable devices, home health care, home security, rearview mirror, LED smart Lighting, IP camera, Thermocouple reader, battery monitor.

 

 Table: WPG Holdings Consolidated Management Financials for the quarter ended March 31, 2015. (In brief)

Units:NT$ million

Income Statement (2015/1/1~2015/3/31)                               Balance Sheet (2015/3/31)

Item

Amount

 

Item

Amount

Operating revenues

108,014

 

Current Assets

143,849

Cost of Goods Sold

(103,200)

 

Accounts receivables

72,216

Gross Profit

4,814

 

Inventories

55,163

Operating Expenses

(2,814)

 

Other assets

13,903

Operating income

2,000

 

Total Assets

157,752

Non-op Expenses

(245)

 

Current Liabilities

97,840

Profit Before Tax

1,755

 

Current Borrowing

46,198

Tax

(355)

 

Accounts payables

45,278

Minority & Others

(2)

 

LT Liabilities

13,192

Profit After tax

1,398

 

Total Liabilities

111,848

EPS (Note)

0.84

 

Common Stock

16,557

Net book value per share (Note)

27.66

 

Total Equity

45,904

Note:Based on weighted average outstanding shares.

 

Cash flows (2015/1/1~2015/3/31)

Item

Amount

Income before Income Tax

1,755

Change in NWC

6,371

Operating cash inflow /(outflow)

5,947

Investment cash inflow /(outflow)

167

Change in Financial Debt

(90)

Financing cash inflow /(outflow)

(7,388)

Cumulative translation adjustments

(625)

Net Cash

(1,898)

Beginning cash balance

11,185

Ending cash balance

9,287

 

IR contacts:Cliff Yuan/ Zoe Peng

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

Email address:  ir@WPGholdings.com

Corporate website:  www.WPGholdings.com