Mr. Sham continued, “We are striving to address these and other cost issues, including certain manufacturing costs previously absorbed by our home appliance business prior to its discontinuation in January 2012. As part of these efforts, we have started to lease some of the unused space in our manufacturing facility that was previously occupied by our home appliance business. However, we do not expect our efforts to adjust our cost structure will have a material impact on our operating results until the second or third quarter of fiscal 2014, at which time we believe we will return to profitability. Until such time we expect our net cash position to continue to remain strong.”
Mr. Sham concluded, “As previously disclosed, the expansion of our CCM production capacity through the installation of three chip-on-board (COB) production lines and a Class 10 clean room was recently completed. We are pleased to report that our CCM business has started receiving orders that require the use of our new COB production lines. Since COB production lines are capable of producing higher-pixel camera modules and other precision-related devices, we believe that our CCM business will continue to grow through the addition of new customers and the sale of higher profit margin products. As such, we are cautiously optimistic about the growth opportunities of our CCM business and expect our CCM sales to increase and profitability in this business segment to gradually improve in the coming months.”
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) and camera modules (CCMs). 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 other countries throughout the world.