Net sales in Q1/2014 were NT$4,287 million, a decrease of 0.6% quarter-over-quarter from NT$4,315 million in Q4/2013, and an increase of 51.0% year-over-year from NT$2,840 million in Q1/2013. Our shipment volume decreased quarter-over-quarter in light of fewer working days in Q1/2014, offset by slightly higher ASP and lower OEM mix.
Gross profit in Q1/2014 was NT$533 million, compared to NT$537 million in Q4/2013 and gross loss of NT$336 million in Q1/2013. Gross margin was 12.4% in Q1/2014, compared to 12.5% in Q4/2013 and -11.8% in Q1/2013. On the back of strong cost reduction, our gross profit was relatively stable in Q1/2014 despite increasing wafer prices.
Operating profit in Q1/2014 was NT$353 million, compared to NT$345 million in Q4/2013 and operating loss of NT$498 million in Q1/2013. Operating margin was 8.2% in Q1/2014, compared to 8.0% in Q4/2013 and -17.5% in Q1/2013. Operating leverage drove operating expense as a percentage of revenue down from 4.5% in Q4/2013 to 4.2% in Q1/2014.
Net income in Q1/2014 was NT$244 million, compared to NT$243 million in Q4/2013 and net loss of NT$493 million in Q1/2013. Net margin was 5.7% and EPS came in at NT$0.60 in Q1/2013, compared to NT$0.61 in Q4/2013 and loss per share of (NT$1.45) in Q1/2013. We are pleased to report another strong quarter and have delivered sustainable profitability.
We expect demand strength to continue in Q2/2014 with a stable pricing environment. In the meantime, after impacted by the long-term contract related charges in 2013, we expect our 2014 financial result to reflect underlying operation performance as we have renegotiated all the long term contracts that we have related prepayment on our balance sheet.
Evelyn Hung
Corporate Planning
GINTECH ENERGY CORPORATION
Tel: +886-2-2656-2000 ext.8163
Fax: +886-2-2656-0583
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