In the Spotlight
TAIPEI, Taiwan, October 31, 2011 - Aurora Corp. (Ticker: 2373 TT / 2373 TW) today announced third-quarter 2011 results ended September 30, 2011.
In the Spotlight
- EPS of NT$0.99, third-highest in company history
- Best-ever third-quarter revenue of NT$3.26 billion
- Operating income of NT$194 million, a 427% increase
- Q4 EPS of NT$0.72
"We delivered impressive results in the backdrop of a seasonally soft quarter, thanks to continued growth in China office automation and office furniture businesses. Our sharp focus on logistics improvement and manufacturing efficiency ensured sustained profit levels, and we continued to execute our expansion plan. With two more flagship service points established in Hefei and Zhengzhou in China's central region, our competitive positioning in document technology was further enhanced to accelerate growth," state the Company.
Revenue
Third-quarter net revenue, at NT$3.26 billion, was flat over the year-ago period due to a combination of seasonal weakness for managed print services, phone subsidy cuts affecting the mobile product segment and slowing North-American demand for office equipment. By geographic region, China exhibited strong growth momentum with a 20% increase in sales year-over-year, versus a 10% decrease in Taiwan. In September, China monthly sales overtook Taiwan for the first time as the biggest revenue contributor.
During the first nine months, net revenue totaled NT$9.54 billion, a 6% increase from the year-ago period. Office automation, office furniture, mobile technology and office equipment represented 38%, 26%, 24% and 12% of total revenue, respectively.
During the nine-month period, China generated 48% of total revenue with 1.02 million RMB, up 18% from the year-ago period. Office furniture, which represented nearly half of China revenue, drove the greatest growth at 35%, followed by office automation's 14%.
Gross Profit
Gross profit was flat at NT$1.24 billion from the year-ago quarter. Gross margin was 38.1% compared to 38.4% a year earlier.
For the first nine months of the year, gross profit rose 7% to NT$3.69 billion, translating into a gross margin of 38.7% compared to 38.3% in the year-ago period.
Operating Income
Operating income surged 427% to NT$194 million in the quarter, reflecting a lower year-ago base and effects of disciplined expense management. Operating margin was 6.0%, up 4.8 percentage points compared to the year-ago quarter.
For the first nine months of the year, the Company posted operating income of NT$617 million and operating margin of 6.5%, representing increases of 90% and 2.9 percentage points, respectively, from the year-ago period.
Net Profit
Aurora posted the best third-quarter net profit on record of NT$306 million, or NT$0.99 per share, representing increases of 51% of 52% from the year-ago quarter. The results reflected partly solid earnings improvement in China office automation and furniture businesses, and partly reseller rebates awarded for Japanese equipment sold by Aurora. China contributed approximately 13 million RMB to the Company"s net profit during the third quarter.
For the first nine months of 2011, Aurora reported net profit of NT$839 million, or NT$2.70 per share, representing increases of 62% and 61%, respectively, when compared with the same period of the prior year. During the nine-month period, China contributed approximately 45 million RMB to the Company's net profit.
Other Highlight
Office automation equipment sales continued to rise with color products taking an increasingly larger share. The Company's color penetration rates (color % of new copiers sold) hit an all-time high in the third quarter, with 41% recorded in Taiwan and 15% in China. Taiwan and China copier sales volumes grew 10% and 6% year-over-year in the quarter, which drove the machine-in-field (MIF) base to 88,000 and 46,000 units as of September 30, separately.
Outlook
"Now with the Government and corporations rushing to spend the outstanding budget in the final quarter, the office automation and office furniture businesses are gaining momentum. We expect weakness in the mobile technology and office equipment segments will show steady improvement, and sales from new product offerings -projectors, laser printers and fax management software - will scale up to a higher level. We are well-positioned and now geared up for an even better fourth quarter," stated the Company.
Investor Relations Contacts
Ernest Ma, Spokesperson
Grace Peng, Deputy Spokesperson
+886-2-2345-8088
[email protected]About Aurora
Founded in 1965, Aurora Corp. reaches and serves customers with a broad portfolio of printers, multi-function devices, print services, office equipment and furniture that cater to businesses of all sizes in any industry.
Forward-Looking Statements
Except for statements in respect of historical matters, the statements in this press release are "forward-looking statements."Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual performance, financial condition or results of operations of Aurora Corp. to be materially different from any future results implied by the forward-looking statements. Investors are cautioned that actual events and results could differ materially from these statements as a result of a variety of factors, including conditions in the overall market and economy, acceptance and demand for products, and technological and development risks.
The financial forecasts and forward-looking statements in this document reflect the current belief of Aurora Corp. as of the date of this document and Aurora Corp. undertakes no obligation to update these forecasts and forward-looking statements for events or circumstances that occur subsequent to such date.
