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Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its financial results for the quarter ended September 30, 2010 (the Company’s second quarter of fiscal 2011).
Net sales for the second quarter of fiscal 2011 were $25.0 million, compared to $29.0 million for the corresponding quarter in fiscal 2010. Net loss for the second quarter of fiscal 2011 was $0.9 million, or $0.29 per share, compared to a net income of $1.6 million, or $0.51 per share, for the second quarter of fiscal 2010.
Net sales for the six months ended September 30, 2010 were $50.8 million, compared to $54.6 million in the corresponding six-month period in fiscal 2010. Net loss for the first six months of fiscal 2011 was $0.1 million, or $0.03 per share, compared to a net income of $2.7 million, or $0.89 per share, for the first half of fiscal 2010.
John C.K. Sham, the Company's President and Chief Executive Officer, said: “While revenues from our electronic component and electronic manufacturing service (EMS) businesses increased when compared to both the first quarter in fiscal 2011 and the corresponding quarter in fiscal 2010, these increased revenues were insufficient to offset the continued decline in net sales of our floor care business.”
Mr. Sham continued, “Our overall gross profit margin remains weak as operating costs, particularly labor and energy costs, continue to increase. This increase in costs was attributable, in part, to rising inflation that has been taking place in China. Additionally, our fixed cost absorption rate increased due to declining activity. Accordingly, the Company must continue to refine its focus on productivity and efficiency."
Mr. Sham concluded, “We do not expect significant improvements in our floor care business during the remainder of fiscal 2011. Accordingly, we are increasing our efforts to incorporate proprietary elements into our electronic component business and improve efficiencies in our EMS business in an attempt to position and strengthen the Company’s prospects for growth in these businesses in the near future. The Company’s continued emphasis on the expansion of our business in China remains vital to long-term growth."