HONG KONG--(Marketwire - June 14, 2010) - ACL Semiconductors (
Quarterly Highlights:
- Net revenue up 58.4% year over year to $99.01 million
- Net income grew 23% over last year to $1.4 million
- Gross margin at 2.9%
- Diluted earnings per share at $0.05 compared to $0.04 a year ago
ACL Semiconductors (
Mr. Alan Yang, Chairman and Chief Executive Officer of ACL Semiconductors, commented, "These outstanding financial results reflect the success of our business model and the macro economic factors across Hong Kong and Southern China. Revenues for the quarter reflect both increased prices and robust demand for electronic components. Fundamental to our continuing growth is our strong relationship with Samsung, which depends on ACL for continuing research and market intelligence to manage their product production and allocation.
"Momentum in the electronic sector particularly for memory products continued into the second quarter as demand for consumer electronics remained robust. We are also gaining increased confidence in our outlook as we continue to benefit from the broader rebound in the semiconductor sector. The electronics business is expected to grow in the forthcoming year and we are ready to take advantage of the foreseeable growth in China's market."
For the first quarter of 2010, ACL Semiconductors reported net revenue of $99.01 million, up 58.4% over $62.5 million for the first quarter 2009. The year over year revenue growth was primarily due to an increase of the average selling prices and continuous demand in memory products in the PRC market. Net income for the first quarter ended March 31, 2010 was $1.4 million compared to net income of $1.2 million for the first quarter of 2009. Earnings per diluted share was $0.05 for the first quarter 2009, as compared to $0.04 in the year ago quarter.
Gross profit for the first quarter 2010 was $2.8 million, down 1% from $2.9 million for the first quarter 2009 impacted by increased cost of sales as the rebound in the electronics market continued and saturization occurred. Gross margin for the first quarter of 2010 was 2.9%, down from 4.6% for the first quarter 2009. The decrease in gross margins for the first quarter 2010 compared to the first quarter 2009 is partially due to the increase in cost of sales when compared to the cost of sales in the corresponding quarter in 2009. During the first quarter of 2009 we experienced increased gross profit as a consequence of higher average selling prices and lower cost of sales as the market experienced a rebound in increased demand together with reduced supply.
Mr. Yang continued, "We are proud of the distribution and product research we continue to supply to Samsung and the role we play in assuring that Samsung receives up to date information on macro market trends and specific data regarding the overall memory product demand and specific product details.
"During the first quarter we took initiatives and reviewed policy changes to improve internal financial controls. Specific steps include evaluation of board composition and new procedures to oversee purchase and disbursements. We expect that these initiatives will increase the reliance and responsibility of our financial planning group and the ability to stay in compliance with SEC regulations."
About ACL Semiconductors
ACL Semiconductors distributes electronic components under the "Samsung" brand name to the Hong Kong and South China markets. The memory chips are used from everything from a mobile phone, digital camera and laptop computer to an MP3 player or Wi-Fi product. For more information about ACL Semiconductors please visit ACL Semiconductors' corporate website at http://www.acl-semicon.com.
Forward-Looking Statements
This information contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In particular, when used in the preceding discussion, the words "plan," "confident that," "believe," "scheduled," "expect," or "intend to," and similar conditional expressions are intended to identify forward-looking statements within the meaning of the Act and are subject to the safe harbor created by the Act. Such statements are subject to certain risks and uncertainties and actual results could differ materially from those expressed in any of the forward-looking statements. Such risks and uncertainties include, but are not limited to, market conditions, the availability of components and successful production of the company's products, general acceptance of the company's products and technologies, competitive factors, timing, and other risks described in the company's SEC reports and filings.
ACL SEMICONDUCTORS INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
| Three Months Ended | ||||||||
| March 31, 2010 | March 31, 2009 | |||||||
| (Restated) | ||||||||
| Net sales | ||||||||
| Related parties | $ | 781,896 | $ | 316,422 | ||||
| Other | 98,229,166 | 62,190,706 | ||||||
| Less discounts to customers | -- | (6,989 | ) | |||||
| 99,011,062 | 62,500,139 | |||||||
| Cost of sales | 96,184,458 | 59,642,180 | ||||||
| Gross profit | 2,826,604 | 2,857,959 | ||||||
| Operating expenses | ||||||||
| Selling | 24,802 | 22,177 | ||||||
| General and administrative | 1,057,869 | 1,355,453 | ||||||
| Income from operations | 1,743,933 | 1,480,329 | ||||||
| Other income (expenses) | ||||||||
| Rental income | 30,000 | 22,308 | ||||||
| Interest expense | (95,164 | ) | (166,892 | ) | ||||
| Management and service income | 8,321 | 6,538 | ||||||
| Net income on cash flow hedge | 15,410 | 20,349 | ||||||
| Interest income | 93 | 33,631 | ||||||
| Loss on disposal of fixed assets | (308 | ) | -- | |||||
| Exchange differences | (6,203 | ) | (9,029 | ) | ||||
| Miscellaneous | 960 | 7 | ||||||
| Income before income taxes provision | 1,697,042 | 1,387,241 | ||||||
| Income taxes provision | 256,066 | 217,949 | ||||||
| Net Income | $ | 1,440,976 | $ | 1,169,292 | ||||
| Earnings per share - basic and diluted | $ | 0.05 | $ | 0.04 | ||||
| Weighted average number of shares - basic and diluted | 28,729,936 | 28,534,380 | ||||||
ACL SEMICONDUCTORS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
| As of March 31, 2010 (Unaudited) | As of December 31, 2009 | ||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 19,802,763 | $ | 23,838,753 | |||||
| Accrued expenses | 603,583 | 527,582 | |||||||
| Lines of credit and loan facilities | 10,230,089 | 9,013,813 | |||||||
| Current portion of long-term debt | 318,046 | 318,972 | |||||||
| Current portion of capital lease | 328,292 | 318,135 | |||||||
| Income tax payable | 732,807 | 505,078 | |||||||
| Due to stockholders for converted pledged collateral | 112,385 | 112,385 | |||||||
| Other current liabilities | 297,829 | 282,475 | |||||||
| Total current liabilities | 32,425,794 | 34,917,193 | |||||||
| Long-term liabilities | |||||||||
| Long-term debts, less current portion | 2,669,597 | 2,747,981 | |||||||
| Capital lease, less current portion | 128,556 | 146,117 | |||||||
| Deferred tax liabilities | 19,468 | 19,468 | |||||||
| Total long-term liabilities | 2,817,621 | 2,913,566 | |||||||
| Total Liabilities | 35,243,415 | 37,830,759 | |||||||
| Stockholders' equity: | |||||||||
| Common stock - $0.001 par value; 50,000,000 shares authorized; 28,729,936 issued and outstanding as of March 31, 2010 and December 31, 2009 respectively | 28,730 | 28,730 | |||||||
| Additional paid in capital | 3,658,627 | 3,658,627 | |||||||
| Retained earnings | 2,395,161 | 954,185 | |||||||
| Total stockholders' equity | 6,082,518 | 4,641,542 | |||||||
| Total Liabilities and Stockholders' equity | 41,325,933 | 42,472,301 | |||||||
ACL SEMICONDUCTORS INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets (Unaudited)
| As of March 31, 2010 (Unaudited) | As of December 31, 2009 | ||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 3,330,275 | $ | 2,001,805 | |||||
| Restricted cash | 2,088,170 | 2,086,504 | |||||||
| Accounts receivable, net of allowance for doubtful accounts of $0 for 2010 and 2009 | 13,492,554 | 12,434,386 | |||||||
| Inventories, net | 3,365,179 | 6,048,116 | |||||||
| Other current assets | 163,358 | 274,351 | |||||||
| Total current assets | 22,439,536 | 22,845,162 | |||||||
| Property, equipment and improvements, net of accumulated depreciation and amortization | 8,221,617 | 8,179,765 | |||||||
| Other deposits | 182,116 | 213,535 | |||||||
| Amount due from Aristo / Mr. Yang | 10,482,664 | 11,233,839 | |||||||
| Total Assets | 41,325,933 | 42,472,301 | |||||||
Contact Information:
Investor Contacts:
Kenneth Lee
Vice President
ACL Semiconductors, Inc.
+1 415-812-8626