ALi Corporation (3041TT) today held its 2013 third quarter online earnings conference and announced consolidated revenue of NT$1,059 million, consolidated gross profit of NT$441 million with consolidated gross profit margin of 42%, consolidated operating loss of NT$13 million, net loss of NT$44 million, and basic earnings per share of -NT$ 0.15 for the third quarter ended September 30th, 2013.
ALi Corporation stated that third quarter’s revenue of NT$1,059 million, representing an increase of 11% on a quarter-over-quarter basis, was mainly a result of ASO (Analog switch-off) being initiated in some emerging countries and the end of the Islamic holy month of Ramadan spurring the demand in retail market both for standard and high-definition products, along with the growth momentum in Pay-TV market in emerging countries in regions such as South East Asia and Africa. Although the third quarterly revenue of 2013 decreased year-over-year, the company has seen the growth momentum in Pay-TV market and retail IP STB. Consolidated gross profit margin was 42%, down 4 percentage points compared to the level of previous quarter due to product mix change and decreasing product margins for some segments. Consolidated operating expenses increased 12% quarter-over-quarter, primarily due to larger sales scale resulting in higher sales and administrative expenses, along with additional research and development (R&D) investments, hence causing the operation and bottom-line deficit.
As to the product line contribution in the third quarter, STB accounted for around 90~95% of the revenue. ALi’s STB end markets can be categorized into retail HD, retail SD, retail IP STB (OTT), and Pay-TV operators, which accounted for 35~40%, 30~35%, 5~10%, and 20~25% of STB revenue respectively.
