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Global-Tech Advanced Innovations Announces Return To Profitability For Second Quarter Of Fiscal 2012

Mr. Sham continued, "As previously announced, we are nearing completion of our exit from the home appliance business which will allow us to explore new business opportunities by focusing assets and personnel towards business activities which we believe will create short- and long-term value for our shareholders."

Mr. Sham concluded, "Our cash less short-term debt position has improved significantly since the end of fiscal year 2011 and, as of September 30, 2011, now exceeds $13.00 per share. We remain committed to the use of company resources to explore and pursue business opportunities that we believe have a good probability of success."

Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs) and floor care products. 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 North America, Europe, and 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 September 30,

Six Months Ended September 30,

2011   2010 2011   2010
(unaudited) (unaudited) (unaudited) (unaudited)
 
Net sales

$

33,767

$

24,962

$

58,901

$

50,785

Cost of goods sold   (29,041)   (21,858)   (52,465)   (44,529)
Gross profit 4,726 3,104 6,436 6,256
Selling, general and administrative expenses (3,689) (3,899) (7,499) (7,927)
Other operating income (expense)   (6)   (26)   29   1,113
Operating income (loss) 1,031 (821) (1,034) (558)
Interest expense (17) (70) (133) (97)
Interest income 95 120 258 233
Other income (expense), net   140   (114)   608   494
Income (loss) from operations before income taxes 1,249 (885) (301) 72
Provision for income taxes   (103)   (1)   (133)   (171)
Net income (loss) 1,146 (886) (434) (99)
Net loss attributable to non-controlling interests   25   -   52   -
Net income (loss) attributable to shareholders

$

1,171

$

(886)

$

(382)

$

(99)

 
Basic earnings (loss) per common share

$

0.39

$

(0.29)

$

(0.13)

$

(0.03)

 
Diluted earnings (loss) per common share

$

0.39

$

(0.29)

$

(0.13)

$

(0.03)

 
Basic weighted average number of shares outstanding   3,039   3,039   3,039   3,039
 
Diluted weighted average number of shares outstanding   3,039   3,039   3,039   3,039
 
 

GLOBAL-TECH ADVANCED INNOVATIONS INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Amounts expressed in thousands of United States dollars)

 

September 30, 2011

 

March 31, 2011

(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 40,127 $     19,205
Time deposits - 1,534
Restricted cash 2,347 19,461
Available-for-sale investments 4 7
Accounts and bills receivable, net 27,618 35,632
Inventories 14,136 10,849
Prepaid expenses 170 282
Deposits and other assets 2,034 1,712
Legal claims receivable - 16
Amount due from a related party 29 29
Amount due from a jointly-controlled entity   14       14
Total current assets 86,479 88,741
Interests in jointly-controlled entities - -
Property, plant and equipment, net 24,317 25,013
Land use rights, net 3,089 3,061
Deposits paid for purchase of property, plant and equipment 102 112
Available for sales investments   2,993       3,009
Total assets $ 116,980 $     119,936
 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Short-term bank loans 1,650 12,585
Accounts payable 17,161 10,353
Bills payable 1,125 1,279
Temporary receipts 1,090 821
Accrued salaries, allowances and other employee benefits 6,166 5,608
Accrual for loss contingencies - 31
Other accrued liabilities 7,389 7,576
Income tax payable   5,172       5,318
Total current liabilities 39,753 43,571
Deferred tax liabilities   28       28
Total liabilities   39,781       43,599

Shareholders' equity:

 

 

 

 

Common stock, par value $0.04 per share; 12,500,000 shares authorized; 3,229,314 shares issued as of September 30 and March 31, 2011

129

129

Additional paid-in capital 84,769 84,752
Accumulated deficit (11,483) (11,101)
Accumulated other comprehensive income 8,674 7,395
Non-controlling interests (227) (175)
Less: Treasury stock, at cost, 189,587 shares as of September 30 and March 31, 2011   (4,663)       (4,663)
Total shareholders’ equity   77,199       76,337
Total liabilities and shareholders' equity $ 116,980 $     119,936




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