Hsin Chu, Taiwan
AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held a meeting of the Board of Directors and Supervisors, at which the Board approved its results of operations for the six months ended June 30, 2003. The Company also released preliminary results for 2Q 2003 and 1H 2003. 1H03 consolidated revenues totaled 42,110 million, net income NT$3,105 million and basic EPS of NT$0.73, while 2Q03 consolidated revenues totaled NT$23,842 million, net income of 2,926 million and basic EPS of NT$0.69. All financial information was unaudited and was prepared by the Company in accordance with generally accepted accounting principles in Taiwan ("ROC GAAP") on a consolidated basis.
On a sequential basis, 2Q03 results represent a 30.5% growth in net sales from 1Q03. Gross profit surged 143.5% from NT$1,890 million to NT$4,601 million while gross margin improved significantly from 10.3% in 1Q03 to 19.3% in 2Q03. Operating income in 2Q03 also rose 445.9% from the previous quarter to NT$2,983 million, representing an operating margin of 12.5%. Net income increased from NT$179 million in 1Q03 to NT$2,926 million for the quarter, with net margin increased from 1% to 12.3%. Basic EPS for 2Q03 is NT$0.69, vs. NT$0.04 in the previous quarter.
"Although demand remained healthy during first half 2003, panel ASP only improved moderately during the period, the remarkable performance AUO achieved in 1H03 is mainly attributed to 1) product mix management; 2) technology advancement; 3) further enhanced customer portfolio; 4) efficient capacity allocation; 5) effective cost reduction and 6) strong growth in small and medium panel business (consumer electronics). We have made significant progress to further strengthen our leadership position in Taiwan and global competitiveness, the 1H03 operation results provide solid evidence of AUO's execution capability." Said President & COO, Mr. HB Chen.
"Despite the impact of the Iraq war and SARS during 2Q03, we still saw growth in overall demand for our large size panels (including NB, Monitor and TV), capacity from G5 fab also contributed to part of the 18.7% sequential unit shipment growth in 2Q03 to reach 2.8 million. Moreover, shipment of our small & medium size panel business experienced robust QoQ growth of 80% to record high of 4.7 million." Commented by EVP Dr. Hsiung.
"AUO is the most financially sound and profitable company among all Taiwan TFT-LCD players, we are committed to continuously improve our profitability, leveraging our strength in sound financial position, manufacturing capability, technology, R&D and design know-how, cost efficiency and global position, in order to deliver stable return to our shareholders." Concluded by Mr. Max Cheng, CFO of AUO.