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Next slide please. Before we move onto the earnings results, please take a minute to read the disclaimer. I would like to remind everyone that results are based on consolidated IFRS Accounting Standards and are un-audited.Next slide please. This conference call will take about an hour. Before we go into the Q&A session, please allow me to highlight our fourth quarter results, performance highlights, and outlook. Moving on to revenue and profits on the next slide, revenue was (Won) 6.6 trillion, up 5% quarter-on-quarter. We did better than expected in U.S. end of year sales, higher value-added products such as FPR 3D and Smart device sales growth resulting 4% quarter-on-quarter increase in shipments. Although panel prices slightly dropped in Q4, the price remained flat this November with the conservative inventory policies and utilization adjustment across the industry. Increased proportion of high-end specialty product, higher utilization rate and continued cost reduction significantly improved operating loss compared to previous quarter recording (Won) 145 billion growth. Operating margin was minus 2%. EBITDA margin was 13%. Income before tax was minus (Won) 133 billion. Net income was minus (Won) 6 billion. Moving on to slide four, looking at our financial positions and ratios. Following the rough quarter, aggressive cost reduction efforts and preemptive inventory level control improved our financial position. So our cash and cash equivalent rose to (Won) 2.3 trillion. Inventories fell by (Won) 52 billion to (Won) 2.3 trillion. Net debt-to-equity ratio fell by three percentage point quarter-on-quarter recording 22%. Moving onto slide five, looking at our cash flow. Cash at the beginning of the quarter was (Won) 2 trillion. Cash flow from operating activities resulted in cash inflow of (Won) 1.5 trillion with (Won) 638 billion increase in working capital. Cash flow from investing activities resulted in an outflow of (Won) 1.2 trillion. As a result, the net change in cash was inflow over (Won) 300 billion.
Moving onto slide six, I would like to go over our performance highlights. Looking at our shipments, it increased by 4% quarter-on-quarter. Panel price remained flat since November and our ASP recording $684, a 3% quarter-on-quarter decrease. The price fall was limited compared to the industry average decline due to increased pushing of our higher value-added products.Moving on to our product mix on slide seven, in the fourth quarter, the TV segment represent 47% of the revenue, followed by monitor at 20%, notebook at 13%, smartbook at 9%, and mobile and others at 11%. The smartbook portion has been reduced as the high-end smartbook sales decreased in Q4, but mobile’s revenue portion increased with strong sales in smartphone. Moving on to slide eight, and looking at our capacity. Our capacity decreased slightly by 3% quarter-on-quarter. This is due to the introduction of our new production process in changing (inaudible). Although the production capacity decreased, impact on our output was limited as the production efficiency has improved. Next, we turn to our outlook section. In the fourth quarter, we expect our total shipment to remain similar to the previous quarter and we expect better than normal seasonality as the customers restock their inventory from current low levels and (inaudible) is expected to increase within our customers. However, the uncertainty over demand outlook remains with a macro economic impact acting as our risk factors. The ASP is expected to remain stable since the panel maker’s profitability concerns continue and inventory levels across the industry are very lean. Although there are some uncertainties in the market which could potentially impact the panel shipments, we believe that we are in a relatively better position. Thanks to the increasing trend of high end specialty products within our sales. We are committed to accelerating the differentiation of our products and believe the strategy to minimize the impact of the industries that are back hauled and to maintain the stable product structure during this uncertain period.
With that I will end my summary of Q4 and future outlook and would be happy to take your questions. To use the time efficiently, please limit to three questions per person. Operator, proceed to Q&A session please.Read the rest of this transcript for free on seekingalpha.com