Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its financial results for the fiscal year ended March 31, 2012.
Net sales for fiscal 2012 were $69.7 million, an increase of approximately 21% when compared to net sales of $57.5 million for fiscal 2011. Net income for fiscal 2012 was $1.4 million, or 0.46 per share, compared to a net loss of $4.0 million, or $1.32 per share, in fiscal 2011. Net sales as reported in the Company’s Annual Report on Form 20-F for fiscal 2012 and fiscal 2011 exclude sales for the home appliances segment of approximately $53.9 million and $40.0 million, respectively, which is reflected as a discontinued operation following the Company’s exit from the home appliances business in January 2012.
Our net liquid assets increased over $12 million in fiscal 2012 to $43.4 million, primarily due to a reduction in working capital requirements following the Company’s exit from the home appliances business. Net liquid assets (a non-GAAP measure) is defined as cash and cash equivalents plus time deposits plus restricted cash plus available-for-sale investments less short-term bank loans (a GAAP reconciliation has been provided below). We believe the net liquid assets measure provides us, as well as our investors, additional information about our financial strength and available resources that, along with earnings, is helpful in understanding our business and potential for future growth.
John C.K. Sham, the Company's President and Chief Executive Officer, said: “Major strides were made in fiscal 2012 towards the Company’s transition and transformation from primarily a manufacturer and exporter of home appliances to the production and supply of electronic components and the provision of electronic manufacturing services (EMS) to China’s telecommunications market. We believe these types of business present great opportunities for continued growth and success.”
Mr. Sham continued, “Declining margins in the home appliances business required us to diversify and refocus our efforts towards more profitable businesses. This transition has been accomplished thus far through the utilization of internal resources rather than long-term borrowing, which we believe has positioned the Company for future growth.