Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its financial results for the fiscal year ended March 31, 2013.
Net sales for fiscal 2013 were $81.1 million, an increase of approximately 16.4% when compared to net sales of $69.7 million in fiscal 2012. Net loss for fiscal 2013 was $2.0 million, or $0.65 per share, compared to a net income of $1.4 million, or $0.46 per share, in fiscal 2012.
Net sales for the fourth quarter of fiscal 2013 were $13.9 million, compared to $15.5 million in the corresponding period in fiscal 2012. Net loss for the fourth quarter of fiscal 2013 was $2.3 million, or $0.75 per share, compared to a net loss of $1.5 million, or $0.51 per share, for the corresponding quarter in fiscal 2012.
Despite incurring losses in fiscal 2013, the Company’s cash flow remained positive as our net cash position increased approximately $1.9 million to $42.2 million, primarily due to a significant reduction in accounts receivables, partially offset by capital expenditures. Net cash (a non-GAAP measure) is defined as cash and cash equivalents plus restricted cash less short-term debt (a GAAP reconciliation has been provided below). In providing our net cash position, we believe our shareholders, as well as potential investors, gain a better understanding of the Company’s potential for future growth and are better able to assess the Company’s financial strength and available resources.
SG&A expenses in fiscal 2013 did not increase materially from fiscal 2012 when discontinued operations are included and most of the increase was due to exchange rate appreciation of the Renminbi against the U.S. dollar.
John C.K. Sham, the Company's President and Chief Executive Officer, said: “The Company’s fourth quarter continues to be our weakest quarter, due at least in part to business disruptions relating to the Chinese New Year. Rising labor costs coupled with labor shortages in southern China negatively impacted our operating results. The developing slowdown in the Chinese economy also adversely impacted our business, most significantly in our EMS segment.”