ALi Corporation (3041 TT) today held its second quarter online earnings conference and announced consolidated revenue of NT$1,291 million, consolidated gross profit of NT$627 million with consolidated gross profit margin of 49%, consolidated operating income of NT$251 million with consolidated operating profit margin of 19%, net income of NT$213 million, and basic earnings per share of NT$0.73 for the second quarter ended June 30, 2012.
ALi Corporation stated that second quarter consolidated revenue, as expected, representing a decrease of 9% on a quarter-over-quarter basis, was basically affected by declining demand due to the expiring deadline of ASO (Analog Switch-off) in Western European countries. However, second quarter consolidated revenue still represented an increase of 47% compared to the same period of previous year as the company has been developing various types of products targeting high-definition and IP STB (OTT) in retail market, as well as cultivating relationship with Pay-TV operators for a couple of years, all three of which are key growth drivers to boost sales scale. The gross profit margin of 49%, similar to the previous quarter but representing an increase by 6% year-over-year, was driven by the high contribution from high-definition chipsets with better margin. Moreover, well-controlled OPEX during this quarter led to the higher-than-expected operating profit margin. Though the profit level dropped quarterly due to declining top line, the consolidated operating profit and net income grew by more than 100% on the year-over-year basis.
For the product line contribution of the second quarter, STB accounted for 92% of the revenue, a slight decline compared to the ratio of 96% in the first quarter. ALi’s STB end markets can be categorized into Retail HD, Retail SD Satellite, Retail SD Terrestrial, and retail IP STB (also known as OTT) and Pay-TV operators, which accounted for 61%, 24%, 8%, 1% and 6% of STB revenue contribution respectively. As for geographical revenue breakdown, China accounted for 8% of total STB revenue, while Emerging Market for 58 %, Europe & US for 34 %.
Looking forward, the chairman and CEO, Dr. Ben Lin, stated that the company is conservative about third quarter’s STB market in view of skepticism toward the economic conditions in Western Europe, US, emerging markets, and China, in addition to high inventory level retained by distributors and end clients. Guidance for the third quarter’s consolidated revenue is expected to be between NT$1,029M and NT$1,107M, a decline by 14%~20% on a quarter-over-quarter basis and an increase by 10%~18% on a year-over-year basis, while consolidated gross profit margin between 46.2% and 48.0%, and consolidated operating income rate between 13.6% and 14.0%.
