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ALi Corporation (3041 TT) today held its second quarter online earnings conference and announced consolidated revenue of NT$1,291 million, consolidated gross profit of NT$627 million with consolidated gross profit margin of 49%, consolidated operating income of NT$251 million with consolidated operating profit margin of 19%, net income of NT$213 million, and basic earnings per share of NT$0.73 for the second quarter ended June 30, 2012.

ALi Corporation stated that second quarter consolidated revenue, as expected, representing a decrease of 9% on a quarter-over-quarter basis, was basically affected by declining demand due to the expiring deadline of ASO (Analog Switch-off) in Western European countries. However, second quarter consolidated revenue still represented an increase of 47% compared to the same period of previous year as the company has been developing various types of products targeting high-definition and IP STB (OTT) in retail market, as well as cultivating relationship with Pay-TV operators for a couple of years, all three of which are key growth drivers to boost sales scale. The gross profit margin of 49%, similar to the previous quarter but representing an increase by 6% year-over-year, was driven by the high contribution from high-definition chipsets with better margin. Moreover, well-controlled OPEX during this quarter led to the higher-than-expected operating profit margin. Though the profit level dropped quarterly due to declining top line, the consolidated operating profit and net income grew by more than 100% on the year-over-year basis.

For the product line contribution of the second quarter, STB accounted for 92% of the revenue, a slight decline compared to the ratio of 96% in the first quarter. ALi’s STB end markets can be categorized into Retail HD, Retail SD Satellite, Retail SD Terrestrial, and retail IP STB (also known as OTT) and Pay-TV operators, which accounted for 61%, 24%, 8%, 1% and 6% of STB revenue contribution respectively. As for geographical revenue breakdown, China accounted for 8% of total STB revenue, while Emerging Market for 58 %, Europe & US for 34 %.

Looking forward, the chairman and CEO, Dr. Ben Lin, stated that the company is conservative about third quarter’s STB market in view of skepticism toward the economic conditions in Western Europe, US, emerging markets, and China, in addition to high inventory level retained by distributors and end clients. Guidance for the third quarter’s consolidated revenue is expected to be between NT$1,029M and NT$1,107M, a decline by 14%~20% on a quarter-over-quarter basis and an increase by 10%~18% on a year-over-year basis, while consolidated gross profit margin between 46.2% and 48.0%, and consolidated operating income rate between 13.6% and 14.0%.

ALi Corporation. (3041 TT) today announced to webcast its second quarter 2012 earnings conference call on Friday, August 3rd at 3 p.m. Taipei Time in Mandarin. Dr. Ben Lin, Chairman & CEO, will host the conference call to discuss the company’s financial results and answer questions from investors.

A live webcast of the conference call will be available through the Investor Relations page on the ALi website. Analysts or media representatives wishing to ask questions may use the toll-free numbers listed below.

Event Details
Event Title : ALi Corp, 2Q12 Earnings Conference Call
Date : 2012-08-03 15:00:00 (Taipei Time)
Speaker : Dr. Ben Lin, Chairman & CEO
Language : Mandarin
Webcast URL
http://www.mzcan.com/cancast/taiwan/index.php?id=tw3041_16&version=c
Dial-In Numbers
TW： 0080 113 6336
HK： 3005 2050
CN： 800 876 8626
UK：0800 279 7818
US： 1866 549 1292 
International Access：+852 3005 2050 
Password: 168005#

Please find further information about the conference on the Company's website www.alitech.com. Questions regarding this conference call may be directed to our Investor Relations Division at +886-2-8752-2000. Thank you.

ALi Corporation (3041 TT) today announced that the total consolidated revenue for May 2012 reached NT$358.3 million, down 32% MoM and up 25% YoY. Aggregate revenue from January to May of 2012 was NT$2.31 billion, up 71% from the same period last year.

The company stated that with the deadline for the switch-off of analogue signals in Western European countries coming up, the company’s strong short-term catalysts surging since the end of last year are wearing off. Meanwhile, short-term inventory adjustment in channels also leads to relatively lower monthly sales numbers in May, which nevertheless is still up 25% from the same period of last year.  

ALi Corp. holds more than 50% of the global market share in the retail STB market; the trend for continuous high definition migration will fundamentally improve the company’s product mix to higher ASP and Gross Margin. Besides the retail STB market, the company has been cultivating Pay-TV operators and IP STB market for a couple of years, which would gradually become the next focal points for long-term growth momentum. 

ALi Corp. schedules to hold its 2011 Annual General Meeting on June 20th. With an EPS of NT$ 2.24 in 2011, once the earnings distribution is approved, the company will issue a cash dividend of NT$1.78, elevating the dividend pay-out ratio in 2011 to 79%.

Consolidated Sales Report, May 2012 (in NT$1,000)

Year 2012 figures have not been audited.