ssil 2012 annual results presentation final systech 2012 annual... · 38.6% results from core...

P. 1SSIL 2012 Annual Results Announcement 20 Mar 2013

-+


Table of Contents

� Summary

� Financial Review

� Business Review

� Outlook


Summary


� Sales increased by about 26% to US$65.1 million

� Gross profit surged by about 60% to US$25.1 million

� Gross margin increased by around 8 percentage points to 38.6%

� Results from core businesses (including finance income from treasury function) amounted to US$5.9 million

� Net loss US$1.4 million

� Book-to-bill ratio for the year was 1.07

� Basic loss per share 0.43 HK cent

� The Board resolved not to propose any final dividend for the year ended 31 December 2012

Results Summary


Financial Review


Profit and loss

* Results from core businesses (including finance income from treasury function)

(US$ million) 2012 2011 YoY

Sales 65.1 51.6 +26%

Gross profitGross margin

25.138.6%

15.830.5%

+60%+8pts

Results from corebusinesses*

5.9 (15.6)

Net loss (1.4) (17.6) -92%

(HK cents)

Basic loss per share (0.43) (5.6) -92%

Dividends per share Nil Nil

Book-to-bill ratio 1.07 0.97


Financial Remarks

Sales

Unit Shipments 3% up YoY

Blended ASP 22% up YoY

Net loss

Gross Profit US$25.1m 60% up YoY

Total Operating Expenses US$25.6m 15% down YoY

• R&D costs US$14.2m; 18% down YoY

• S&D expenses US$3.1m; 13% down YoY

• Admin expenses US$8.3m; 9% down YoY

Key Factors

• Gross margin 38.6% (‘11: 30.5%)

Strategic Investment Loss

US$1.4m

Results from Core Businesses*

US$5.9m

Finance Income

• Treasury Income US$2.2m (’11: US$1.5m)

• Unrealizable gain from treasury investment US$3.8m (’11 loss: US$3.2m)

• US$7.3m (‘11: US$2.0m)

US$65.1m

* Results from core businesses (including finance income from treasury function)

US$5.7m (’11 cost: 1.6m)


Balance Sheet

(US$ million)

As at 31 Dec 2012

As at 31 Dec 2011

YoY

Total assets 131.0 126.5 +4%

Total borrowings 0.6 0.7 -11%

Shareholders’ funds 115.9 117.4 -1%

Net cash 38.4* 72.1 -47%

(HK cents)

Shareholders’ funds per share 37 37

Net cash per share 12 23

* The change in cash position was due to investment in marketable fixed income type of financial assets to yield more income


Net Cash Delta Analysis ’12 vs ’11

� Net Cash @ 31st Dec:

� US$38.4m (’12) vs $72.1m (’11)

� Major Cash Outflow

� Treasury Investment - US$36.9m

� Loss & Working Capital Change - US$0.7m

� Addition of Fixed Assets - US$0.2m

� Major Cash Inflow

� Disposal of Subsidiary + US$1.9m

� Interest Received + US$1.6m


Business Review


Blended Average Selling Price

� 2012 blended ASP = US$0.63, up 22% YoY (’11: US$0.52)


Unit Shipments by Product Line

� Total unit shipments ~ over 100 million


Outlook


FORGE AHEADFor Steady Growth

Continue to Focus on High Growth, High Volume Smart Product Applications

Our Strategy

Enhance Foundation & Core Competencies

Reinforce Sales & Marketing

Outreach

Improve Field Support for Customers

Boost Technology Development & New Product Introduction


Highlights of Design-wins

Smartphones / Tablets

Smart TVs / Projectors

Smart Devices

Smartphones Electronics Shelf Labels

Portable WIFI Router

Smart Projectors

Pocket Projector

Multimedia Education Projectors

Smart TVs

Pico Projector

Healthcare Product

Other Smart Devices

Security System

Digital Wireless

RecordingSystem

Sports Camera

Power Modules for LED Lighting

Panel Light

Spotlight Tube Light

Tablets

Mini Projector


Outlook – Smartphones/Tablets

� High Resolution LCD Display Drivers • Mass production: HD720/WXGA TFT driver ICs • Launch metal oxide TFT drivers & in-cell touch

display drivers

Advanced Display

Mobile Display

� AMOLED • Develop: AMOLED driver controllers for China’s

smartphone market.

� Touch Panel Controllers• Mass production: capacitive touch panel controllers• Launch more new products: address single-layer,

multi-touch applications� MIPI High Speed Display Interface Controllers

• Mass production: MIPI transmitters for HD resolution smartphone and tablet applications

• Launch new products targeting FHD display panels

Mobile System


Outlook – Smart TV/Projectors

� Smart Projectors• Promote new integrated solutions targeting China

market and world leading customers� Smart Display & Accessories

• Develop products using 3D display technology targeting 3D camera applications

Mobile System

Large Display� Continuous engagement with current high-volume

customer for more new business projects


Outlook – Smart Devices

Green Power� LED Lighting

• Focus on high-quality, high-volume applications and customers• Ramp up mass production of LED power modules

Advanced Display� Electronic Shelf Labels

• Develop more display driver ICs for potential applications• Work with leading ESL makers to extend market reach

geographically

Other Smart Devices

� Advanced Display• Expand into new applications: smart devices and healthcare• Introduce new OLED IC to replace VFD in automotive, industrial &

set-top box applications• Develop OLED Lighting IC products

� Mobile System• Achieve more design-wins for display controllers: digital wireless

recording systems and sports cameras


Summary

Overall

� Exited 2012 with growth momentum behind us� Cautiously optimistic – due to uncertainties: pace of US

economic recovery, euro area issues, high unemployment rate in developed economies

Gross Profit Margin

� Stay in line with industry

2013 Focus

� Continue to strive for growth in focused display applications

� Boost new product introduction to get more design wins � Improve customer service and support� Strengthen sales & marketing outreach

Operating Expenses

� Continue monitoring & investing to boost focused product applications

Thank You

Solomon Systech (International) Limited

Stock code: 2878

www.solomon-systech.com

ssil 2012 annual results presentation final systech 2012 annual... · 38.6% results from core...

Documents