Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its financial results for fiscal year 2010 and the fourth quarter ended March 31, 2010.
Net sales for the fiscal year ended March 31, 2010 were $101.9 million, an increase of 16.6%, when compared to $87.4 million in fiscal 2009. Net profit for fiscal 2010 was $3.5 million, or $1.14 per share, compared to a loss of $5.8 million, or $1.91 per share, in fiscal 2009.
Net sales for the fourth quarter of fiscal 2010 increased approximately 29.3% to $21.6 million, compared to $16.7 million in the fourth quarter of fiscal 2009. Net income for the fourth quarter of fiscal 2010 was $0.05 million, or $0.01 per share, compared to a net loss of $4.2 million, or $1.36 per share, in the fourth quarter of fiscal 2009.
John C.K. Sham, the Company’s President and Chief Executive Officer, said: “We are pleased to report that we have achieved improved financial results in fiscal 2010. However, we remain cautious about future operating results, given the potential decline in volume and profit margins in the home appliances segment. We anticipate that the electronic components segment will remain relatively stable in fiscal 2011 and expect continued growth in the electronic manufacturing services segment.”Mr. Sham continued, “While many of our customers resumed more normalized purchasing patterns in late 2009 and early 2010, this purchasing pattern could be indicative of improved consumer confidence based on the assumption that the worldwide economic recovery would continue. However, given the inherent unpredictability of the current economic climate, customers are likely to remain cautious, which makes it difficult for us to gauge our business prospects for the coming months.” Mr. Sham concluded, “For fiscal 2011, we intend to utilize additional capital for expansion of our business in the Chinese and Asian markets. In fiscal 2010, revenues from Asia were 47.5% of our net sales and we expect sales in Asia to exceed 60% of net sales in fiscal 2011. A major factor in increasing revenues in Asia has been the progress of our electronic manufacturing service business, which was started less than two years ago. Production capacity is expected to double by the end of fiscal 2011 with additional investment in equipment and infrastructure.”