Net sales in Q3/2013 were NT$4,097 million, an increase of 6.6% quarter-over-quarter from NT$3,845 million in Q2/2013, and an increase of 21.1% year-over-year from NT$3,384 million in Q3/2012. The sequential increase in revenue was driven by higher shipment coupled by stable pricing, partially offset by higher OEM business as a percentage of shipment.
Gross loss in Q3/2013 was NT$151 million, which included one-time long-term contract related charges of NT$694 million. Excluding the one-time items, gross profit would have been NT$543mn, compared to gross profit of NT$386 million in Q2/2013 and gross loss of NT$130 million in Q3/2012. On an adjusted basis, gross margin was 13.2% in Q3/2013, compared to 10.0% in Q2/2013 and -3.9% in Q3/2012. Our gross margin continued to improve thanks to higher utilization rate and lower processing cost.
Operating loss in Q3/2013 was NT$327 million. Excluding the one-time items mentioned above, operating profit would have been NT$367 million, compared to operating profit of NT$209 million in Q2/2013 and operating loss of NT$291 million in Q3/2012. On an adjusted basis, operating margin was 9.0% in Q3/2013, compared to 5.4% in Q2/2013 and -8.6% in Q3/2012. Operating expense as a percentage of revenue came down from 4.6% in Q2/2013 to 4.3% in Q3/2013 as a result of higher revenue base.
Net loss in Q3/2013 was NT$453 million. Excluding the one-time items mentioned above, net profit in Q3/2013 would have been NT$241 million, compared to net profit of NT$111 million in Q2/2013 and net loss of NT$358 million in Q3/2012. On an adjusted basis, net margin was 5.9% in Q3/2013. Loss per share came in at (NT$1.26) in Q3/2013, while adjusted earnings per share stood at $0.67, compared to earnings per share of NT$0.32 in Q2/2013 and loss per share of (NT$1.06) in Q3/2012.
We are pleased to deliver strong Q3/2013 results with higher volume, marginal expansion, and net income, adjusted for one-offs, improving by 118% compared to Q2/2013. We also successfully issued the secondary offering of 50 million shares at NT$23.06 per share and convertible bonds of NT$500 million to strengthen our balance sheet and liquidity.
In Q3/2013, we terminated a 10-year take-or-pay wafer supply agreement with SunEdison. SunEdison will retain the security deposit paid by us before 2009 and return the outstanding prepayment in quarterly installments by Q2/2016. We believe this termination will be mutually beneficial as it adds to our cash flow and gives us more flexibility on wafer purchasing.
Contact:
Evelyn Hung
Corporate Planning
GINTECH ENERGY CORPORATION
Tel: +886-2-2656-2000 ext.8163
Fax: +886-2-2656-0583
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.
www.gintechenergy.com
