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Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) today announced its net sales and earnings for the quarter ended June 30, 2011 (the Company’s first quarter of fiscal 2012).
Net sales for the quarter ended June 30, 2011 were $25.1 million, compared to $25.8 million for the corresponding quarter in fiscal 2011. Net sales of home appliances (primarily floor care products) declined approximately 11%, while net sales in electronics components and electronic manufacturing services (EMS) increased by 5% and 9%, respectively. Sales in Asia constituted over 50% of the net sales in the first quarter of fiscal 2012.
Net loss for the first quarter of fiscal 2012 was $1.6 million, or $0.51 per share, compared to a net income of $0.8 million, or $0.26 per share, for the first quarter of fiscal 2011.
John C.K. Sham, President and Chief Executive Officer, said, “The full impact of increases in wages and the cost of raw materials, resulting primarily from inflation in China and the strengthening of the Chinese currency, adversely impacted our financial results for the first quarter of fiscal 2012. Our gross profit margin in home appliances continued to decline and margins in our electronic components and EMS businesses were also significantly lower than in the prior corresponding fiscal quarter.”
Mr. Sham concluded, “We believe that we need to make some significant changes in our operations to return to profitability and are prepared to do what is necessary to improve our business prospects and financial results.”
Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products and services, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs), floor care products, and electronic manufacturing services (EMS). The primary focus of its subsidiaries is to develop and market high-quality products and services for the communications industries within the China market, as well as markets in North America, Europe, and other countries throughout the world.