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TheStreet Open House

Global-Tech Advanced Innovations Reports First Quarter Results For Fiscal 2014

Global-Tech Advanced Innovations Inc. (NASDAQ: GAI) today announced its net sales and earnings for the quarter ended June 30, 2013 (the Company’s first quarter of fiscal 2014).

Net sales for the quarter ended June 30, 2013 were $14.8 million, compared to net sales of $20.5 million for the corresponding quarter in fiscal 2013. Net loss for the first quarter of fiscal 2014 was $1.5 million, or $0.51 per share, compared to a net income of $0.05 million, or $0.02 per share, for the first quarter of fiscal 2013.

John C.K. Sham, the Company's President and Chief Executive Officer, said: “The Company’s first quarter of fiscal 2014 saw a decrease in net sales of electronic components of approximately $5.2 million when compared to the corresponding quarter in fiscal 2013 due primarily to declines in customer production levels. Despite lower sales, we are encouraged by the recent production and shipment of our new 8.0 and 5.0 megapixel CCMs utilizing our newly installed chip-on-board (COB) production lines, which we believe to be crucial to returning the Company to profitability.”

Mr. Sham continued, “Rising labor costs, high turnover and decreased productivity continue to have significant adverse effects on our operating results. As these issues are likely to persist, we expect to make significant changes in the operation of our businesses in an effort to offset these factors. Additionally, as previously disclosed, a weakening Chinese economy continues to adversely affect our EMS business segment which relies exclusively on the Chinese domestic market. Accordingly, we are considering strategic alternatives, including the potential leasing of our SMT equipment and the facility that houses and operates such equipment in an effort to generate additional income and to improve our financial performance.”

Mr. Sham concluded, “We anticipate that our electronic components business will return to at least prior year performance levels in the second half of fiscal 2014, provided that sales of our newer 8.0 and 5.0 CCMs continue to grow as anticipated. Until such time as this occurs or another business opportunity presents itself, we will continue to rent the excess space in our manufacturing facility to supplement our income.”

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