Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today
announced its net sales and earnings for the quarter ended June 30,
2015 (the Company’s first quarter of fiscal 2016).
Net sales for the first quarter of fiscal 2016 ended June 30,
2015 were $15.3 million, compared to net sales of $24.6 million for
the corresponding quarter in fiscal 2015. Net loss for the first
quarter of fiscal 2016 was $1.0 million, or $0.34 per share,
compared to a net loss of $0.3 million, or $0.10 per share, for the
first quarter of fiscal 2015.
John C.K. Sham, the Company's President and Chief Executive
Officer, said: “As anticipated, net sales decreased significantly
when compared to the prior corresponding period, due almost
entirely to declining sales in commodity CCMs, a lower price-point
category where increases in labor and overhead costs have
eliminated any advantage previously held over competitors.”
Mr. Sham continued, “Despite a decrease in overall sales,
average unit pricing improved as a result of a more favorable
product mix and our efforts to control production costs, leading to
increases in profit margins.”
Mr. Sham concluded, “The outlook on our overall business is
tempered by growing sentiment of a slowing Chinese economy together
with the potential impacts of the recent devaluation of the Chinese
currency, as much of our business is U.S. dollar related. We do not
expect our business to improve in the near future as our customers
are likely to take a conservative position to reduce excess
inventory and are prepared to make further cost reductions if
necessary in an effort to protect our continued viability.”
Recent Developments
Announced Receipt of “Going Private” Offer
- On August 3, 2015, the Company
announced that its board of directors (the “Board”) has received an
unsolicited preliminary non-binding proposal letter (the “Proposal
Letter”), dated August 1, 2015, from Mr. John C.K. Sham, President
and Chief Executive Officer of the Company, and certain of his
controlled or affiliated entities (collectively, the “Acquirer”),
proposing a potential offer to acquire all of the outstanding
common shares of the Company (the “Offer”) not already beneficially
owned or controlled by the Acquirer for $8.75 in cash per share
(“Shares”). According to the Proposal Letter, the Acquirer plans to
form an acquisition company for the purpose of implementing the
Offer, and the Offer is intended to be financed with a combination
of cash and debt.
- On August 10, 2015, the Company
announced that in response to the Proposal Letter received by the
Board from the Acquirer, the Board has formed a special committee
of independent directors who are not affiliated with the Acquirer
(the “Special Committee”) to consider potential transactions
involving the Company, including the previously announced Proposal
Letter. The Special Committee consists of Mr. Barry J. Buttifant
and Mr. Patrick Po-On Hui, with Mr. Buttifant acting as the
chairman of the Special Committee.
- On August 24, 2015, the Company
announced that the Special Committee plans to retain Cleary
Gottlieb Steen & Hamilton LLP as its United States legal
counsel, Maples & Calder as its British Virgin Islands legal
counsel and Houlihan Lokey (China) Limited as its independent
financial advisor to assist in the evaluation of potential
transactions involving the Company, including the Proposal Letter
received by the Board from the Acquirer.
The Special Committee cautions the Company’s shareholders and
others considering trading its securities that the Special
Committee is continuing its evaluation of the Offer or other
alternatives and that, at this time, no decisions have been made by
the Special Committee with respect to the Company’s response to the
Offer. There can be no assurance that any definitive offer will be
made, that any definitive agreement will be executed or that the
Offer or any other transaction will be approved or consummated.
Global-Tech Advanced Innovations Inc. is a holding company,
owning subsidiaries that manufacture and market electronic
components and other related products, such as complementary metal
oxide semiconductor (CMOS) camera modules (CCMs). 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 other countries throughout the world.
Except for historical information, certain statements contained
herein are forward-looking statements that are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform
Act of 1995. Words such as "expects," "anticipates," "intends,"
"plans," "believes," "seeks," “should,” "estimates," or variations
of such words and similar expressions are intended to identify such
forward-looking statements. These forward-looking statements are
subject to risks and uncertainties, including but not limited to,
the impact of competitive products and pricing, demand for new and
existing products in our core business, the financial condition of
the Company’s customers, product demand and market acceptance
especially of our new products, the success of new product
development especially in the area of cellular phone components and
solutions, compact camera modules and other pending projects,
reliance on material customers, suppliers and key strategic
alliances, the terms and conditions of customer contracts and
purchase orders, availability and cost of raw materials, the timely
and proper execution of certain business plans, including the plan
to diversify and transform a portion of manufacturing capacity to
higher-value, technology-oriented products, currency fluctuations,
including the revaluation of the Chinese Renminbi, the imposition
by China’s trading partners of economic sanctions and/or protective
tariffs on Chinese manufactured goods, uncertainties associated
with investments, the regulatory environment, fluctuations in
operating results, the impact of changing global, political and
economic conditions and other risks detailed from time to time in
the Company's filings with the U.S. Securities and Exchange
Commission including its most recent Report on Form 20-F. The
Company does not undertake to update its forward-looking
information, or any other information contained or referenced in
this press release to reflect future events or circumstances.
GLOBAL-TECH APPLIANCES INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
OPERATIONS
(Amounts expressed in thousands of United
States dollars, except per share data)
Three Months Ended June 30, 2015
2014 (unaudited) (unaudited) Net
sales $ 15,307 $ 24,607 Cost of goods sold (14,229)
(22,865) Gross profit 1,078 1,742 Selling, general and
administrative expenses (3,501) (2,955) Other operating income
(expense) - - Operating income (loss) (2,423)
(1,213) Interest income, net 175 104 Other
income (expense), net 1,206 917 Income (loss) from
continuing operations before income taxes (1,042)
(192) Income tax expenses - (124) Income (loss) from
continuing operations (1,042) (316) Income (loss) from discontinued
operations, net of tax - - Net income (loss) (1,042)
(316) Net income (loss) attributable to non-controlling interests
13 15 Net income (loss) attributable to shareholders
$ (1,029) $ (301) Basic earnings (loss) per common share $
(0.34) $ (0.10) Diluted earnings (loss) per common share $
(0.34) $ (0.10) Basic and diluted weighted average number of
shares outstanding 3,044 3,042
GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts expressed in thousands of United
States dollars)
June 30, 2015 March 31,
2015 (unaudited) (audited) ASSETS Current
assets: Cash and cash equivalents $ 9,436 $ 14,502 Time deposits
18,717 12,649 Restricted cash 4,594 9,851 Accounts and bills
receivable, net 25,681 20,494 Inventories 7,862 6,419 Prepaid
expenses 96 95 Deposits and other assets 3,080 3,754 Amount due
from a related party 15 15 Total current assets
69,481 67,779 Interests in jointly-controlled entities - -
Property, plant and equipment, net 23,402 24,175 Land use rights,
net 2,800 2,827 Deposits paid for purchase of property, plant and
equipment 176 200 Deferred tax assets 3 3 Total
assets $ 95,862 $ 94,984
LIABILITIES AND SHAREHOLDERS'
EQUITY Current liabilities: Short-term bank loans 4,301 6,780
Accounts payable 18,939 14,248 Customer deposits 1,430 1,252
Accrued salaries, allowances and other employee benefits 3,147
3,078 Other accrued liabilities 5,756 6,284 Income tax payable
4,029 4,029 Total current liabilities 37,602 35,671
Deferred tax liabilities - - Total liabilities
37,602 35,671
Shareholders' equity:
Common stock, par value $0.04 per share; 12,500,000 shares
authorized; 3,233,814 shares issued as of June 30 and March 31,
2015
129
129
Additional paid-in capital 85,108 85,108 Statutory reserves 1,328
1,328 Accumulated deficit (34,028) (32,999) Accumulated other
comprehensive income 10,839 10,850 Less: Treasury stock, at cost,
189,587 shares as of June 30 and March 31, 2015 (4,663)
(4,663) Total Global-Tech Advanced Innovations Inc.
shareholders’ equity 58,713 59,753 Non-controlling interests (453)
(440) Total equity 58,260 59,313 Total liabilities
and shareholders’ equity $ 95,862 $ 94,984
View source
version on businesswire.com: http://www.businesswire.com/news/home/20150928005493/en/
Global-Tech Advanced Innovations Inc.Cecilia Au-Yeung, (852)
2814-0601investorrelations@global-webpage.comhttp://global-webpage.newshq.businesswire.com
(MM) (NASDAQ:GAI)
Historical Stock Chart
From Oct 2024 to Nov 2024
(MM) (NASDAQ:GAI)
Historical Stock Chart
From Nov 2023 to Nov 2024