Solomon Systech (International) Ltd. · HKEX:2878
Solomon Systech (International) — H1 2008 Earnings Presentation
18 slides from Solomon Systech (International)'s earnings presentation, Sep 11, 2008
Slide 1: SSIL 2008 Interim Results Announcement
11 September 2008 Hong Kong SSIL 2008 Interim Results Announcement 11Sep2008 P. 1
Slide 2: Table of contents
Table of contents ! Summary ! Financial Review ! Business Review ! Outlook SSIL 2008 Interim Results Announcement 11Sep2008 P. 2
Slide 3: Summary
Summary SSIL 2008 Interim Results Announcement 11Sep2008 P. 3
Slide 4: Results summary
Results summary ! Unit shipment 61mu ! Sales US$51 million ! Net loss US$6.0 million ! Basic loss per share 1.95 HK cents ! No interim dividend was declared by the Board ! Book to bill ratio @ 30 Jun-08 was 0.90 SSIL 2008 Interim Results Announcement 11Sep2008 P. 4
Slide 5: Financial Review
Financial Review SSIL 2008 Interim Results Announcement 11Sep2008 P. 5
Slide 6: Profit and loss
Profit and loss Six months ended 30 June YoY (US$ million) 2008 2007 Change Sales 50.8 103.4 -51% Gross profit 11.0 25.0 -56% Gross margin 21.7% 24.1% Net (loss) / profit (6.0) 9.8 Net margin -11.7% 9.5% (HK cents) Earnings per share* -1.95 3.1 Dividends per share Nil 1.0 Book to Bill ratio 0.90 0.6
Slide 7: Balance sheet
Balance sheet As at 30 As at 31 HoH (US$ million) Jun 2008 Dec 2007 Change Total assets 189.2 202.4 -7% Total borrowings Nil Nil N/A Shareholders’ funds 160.6 172.1 -7% Net cash 126.3 137.8 -8% (HK cents) Shareholders’ funds per share 51 55 -7% Net cash per share 40 44 -8% SSIL 2008 Interim Results
Slide 8: Financial remarks
Financial remarks Key Factors Sales 51% Unit shipment 38% YoY Blended ASP 20% YoY Net Loss US$6.0m Operating loss (US$6.0m) • Gross profit reduction 56.0% YoY • SG&A + R&D savings 2.6% YoY Investment impairment (US$1.1m) Financial asset unrealized loss (US$1.4m) Interest income US$2.6m Capex US$3.1m
Slide 9: Business Review
Business Review SSIL 2008 Interim Results Announcement 11Sep2008 P. 9
Slide 10: Blended average selling price
Blended average selling price ! 1H08 blended ASP = US$0.83, down 20% YoY ! Sequential decline rate moderating 2.00 HoH YoY 1.69 1.71 50% Blended Unit ASP (US$) 1.50 Blended ASP Change 1.20 1.05 1.00 0.83 0% 0.50 1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 1H08 0.00 1H04 1H05 1H06 1H07 1H08 -50% SSIL 200
Slide 11: Unit shipment by product line
Unit shipment by product line ! Mono & Color STN: Declined as more mobile phones switched to m-TFT ! m-TFT: Up 29% YoY as design-wins ramped ! OLED: Decline 15% YoY as market stabilizing in new applications ! New Display: Down 67%, e-paper technology still in early stage of commercialization ! Displ
Slide 12: Examples of 1H08 design-wins
Examples of 1H08 design-wins New Customers, New Products, New Applications Mobile Display (STN, TFT) OLED Mobile Phone MP3 Keyboard Instrument MP3 GPS Display System Control Panel Study Machine Mobile Digital TV SSIL 2008 Interim Results Announcement 11Sep2008 P. 12
Slide 13: Outlook
Outlook SSIL 2008 Interim Results Announcement 11Sep2008 P. 13
Slide 14: 2H 2008 Outlook
2H 2008 Outlook ! Sales ! Uncertain economic condition ! Challenging based on the book to bill ratio ! Gross profit margin ! Pressure from market ASP erosion ! Operating expenses ! Maintain control; Invest in focused R&D projects ! New businesses or customers ! Continue development for system soluti
Slide 15: Continuous Development
Continuous Development Customer, Product and Application Diversification ! Display Panel Mobile Display ! m-TFT ! Audio / Video equipments, Mobile Phone - TFT GPS GPS, mobile phone ! OLED ! Mobile phone, MP3, industrial, accessories Mobile Phone - OLED MP3 Keyboard New Display ! E-paper ! Electronic
Slide 16: Continuous Development
Continuous Development Customer, Product and Application Diversification ! Display System ! Total system solutions ! including multimedia system IC, software, hardware, end product reference design ! Focus applications ! mobile digital TV, portable media player, personal navigation device, digital p
Slide 17: Strategic Investment in Growing Industry
Strategic Investment in Growing Industry Customer, Product and Application Diversification ! Solid state lighting Business ! Extend display applications into energy-saving “green” products arena ! Invest in high brightness LED supplier ! formulating supply chain relationship ! Develop new associated
Slide 18: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com SSIL 2008 Interim Results Announcement 11Sep2008 P. 18
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