ALi Corporation (3041TT) today held its 2014 third quarter online earnings conference and announced consolidated revenue of NT$1,396 million, consolidated gross profit of NT$598 million with consolidated gross profit margin of 43%, consolidated operating income of NT$123 million with consolidated operating profit margin of 9%, net income of NT$112 million, and basic earnings per share of NT$0.38 for the third quarter ended Sep 30th, 2014.
ALi Corporation stated that third quarter’s revenue of NT$1,396 million, representing an increase of 37% on a quarter-over-quarter basis, was due to seasonal demand for most retail products especially retail high-definition products. Furthermore, Pay-TV operator segment also showed better performance compared to previous quarter. The year-over-year sales increase of 32% in the third quarter was a result of growth in retail high-definition products thanks to the effort in diversifying product deployment and broadening client base. The yearly growth was also fruition from the company’s continuous cultivation and investment in Pay-TV operator markets. Consolidated gross profit margin was 43%, down 4 percentage points compared to the level of previous quarter due to product mix change and lower product margins in some segments. Consolidated operating expenses increased by 10% quarter-over-quarter. Consolidated operating income reached $123 million with consolidated operating profit margin of 9%. The company’s third quarter net income was NT$112 million, overall profit structure having significantly improved compared to both previous quarter and same period last year.
As to the product line contribution in the third quarter, STB accounted for over 90% of the revenue. ALi’s STB end markets can be categorized into retail high-definition, retail standard-definition, retail IP STB (OTT), and Pay-TV operators, which accounted for 45~50%, 20~25%, below 5%, and 25~30% of STB revenue respectively. Compared to previous quarter, the share of Pay-TV operator revenue slipped slightly but the total revenue from this category increased. This is due to strong high season sales in retail product segments. However, the company sees a continuing upward trend in the contribution from Pay-TV operator market as the share was still up from the level of 20-25% in previous year.
