ALi Corporation (3041TT) today held its 2014 first quarter online earnings conference and announced consolidated revenue of NT$1,108 million, consolidated gross profit of NT$550 million with consolidated gross profit margin of 50%, consolidated operating income of NT$72 million with consolidated operating profit margin of 6%, net income of NT$83 million, and basic earnings per share of NT$0.28 for the first quarter ended March 31st, 2014.
ALi Corporation stated that first quarter’s revenue of NT$1,108 million, representing a decrease of 13% on a quarter-over-quarter basis, was mainly a result of fewer working days due to the Chinese Lunar New Year holidays causing decrease in revenue from most of the product lines. However, revenue from Pay-TV operator markets in emerging countries including Southeast Asia, South Asia and Eastern Europe showed quarterly growth thanks to cultivation in these market segments. The year-over-year sales increase of 29% for the first quarter was a result of long-term growth momentum from Pay-TV operator market and improvement in retail high-definition STB markets fueled by demand from emerging markets. Consolidated gross profit margin was 50%, up 2 percentage points compared to the level of previous quarter, due to better profit margins from multiple product categories and adjustments for one-time events. Consolidated operating expenses decreased 12% quarter-over-quarter and the company’s consolidated operating income reached almost $72 million with consolidated operating profit margin of 6%, up one percentage point compared to previous quarter. The company’s net income was NT$83 million, presenting better profitability compared to both previous quarter and first quarter in 2013.
As to the product line contribution in the first quarter, STB accounted for around 90~95% of the revenue. ALi’s STB end markets can be categorized into retail HD, retail SD, retail IP STB (OTT), and Pay-TV operators, which accounted for 35~40%, 25~30%, 5~10%, and 30~35% of STB revenue respectively. The company sees significant boost in the contribution from Pay-TV operator market from the level of 20-25% in previous quarter.
ALi Corporation also announced the Board of Directors has decided to propose to shareholders at the Annual General Meeting on 24 June 2014 the distribution of a cash dividend of NT$2.30 per share for adoption.
