Solomon Systech (International) Ltd. · HKEX:2878
Solomon Systech (International) — FY2013 Earnings Presentation
24 slides from Solomon Systech (International)'s earnings presentation, Mar 20, 2014
Slide 1: SSIL 2013 Annual Results Announcement
SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 1
Slide 2: Disclaimer
Disclaimer This presentation does not constitute an offer or solicitation to anyone in any jurisdiction in which such offer or solicitation is not authorized or to any person to whom it is unlawful to make such offer or solicitation or is unlawful without compliance with any registration, filing or
Slide 3: Agenda
Agenda Highlights Financial Review Business Review Outlook SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 3
Slide 4: Highlights
Highlights Financial Review Business Review Outlook SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 4
Slide 5: Highlights
Highlights Sales amounted to US$55.2 million Gross profit was US$21.0 million Gross margin was 38.1% Net profit was US$1.3 million (2012 loss: US$1.4 million) Basic earnings per share was 0.42 HK cent Book-to-bill ratio for the year was 0.86 The Board resolved not to propose any final dividend for t
Slide 6: Financial Review
Highlights Financial Review Business Review Outlook SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 6
Slide 7: Financial Review - Profit and Loss
Financial Review - Profit and Loss (US$ million) 2013 2012 Remarks Sales 55.2 65.1 ↓15% Gross profit 21.0 25.1 ↓17% Gross margin 38.1% 38.6% Maintained Net profit/(loss) 1.3 (1.4) Returned to Profitability (HK cent) Basic earnings/(loss) per share 0.42 (0.43) Dividends per share Nil Nil Book-to-bill
Slide 8: Financial Review - Financial Remarks
Financial Review - Financial Remarks Key Factors Sales US$55.2m • Unit Shipments: down 12% YOY (‘12: US$65.1m) • Blended ASP: down 4% YOY Gross US$21.0m • Gross margin: 38.1% (‘12: 38.6%) Profit (‘12: US$25.1m) Total US$25.1m • R&D costs: US$13.9m (‘12: US$14.2m) Operating (‘12: US$25.6m) • S&D expe
Slide 9: Financial Review - Balance Sheet
Financial Review - Balance Sheet As at 31 Dec (US$ million) 2013 2012 YoY Total assets 129.0 131.0 -2% Total borrowings 0.5 0.6 -16% Shareholders’ funds 117.8 115.9 +2% Net cash 32.9 38.4 -14% (HK cents) Shareholders’ funds per share 37 37 Net cash per share 10 12 SSIL 2013 Annual Results Announceme
Slide 10: Financial Review – Net Cash Analysis 2013 vs 2012
Financial Review – Net Cash Analysis 2013 vs 2012 Net Cash@31 Dec: • US$32.9m (’13) vs $38.4 (’12) Major Cash Inflow US$ Major Cash Outflow US$ • Interest and +3.1m • Treasury -6.8m Dividend Investment Received • Disposal of Fixed +0.9m • Net Cash Used in -2.4m Assets Operating Activities • Others +
Slide 11: Business Review
Highlights Financial Review Business Review Outlook SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 11
Slide 12: Business Review – Strive for Innovation
Business Review – Strive for Innovation Innovation for Growth Enhanced Quality and New products in 2013: Speed of New Product • HD LCD display drivers Development • Touch panel controllers • MIPI display interface controllers • AMEPD display drivers • AM/PMOLED display drivers • Streamlined NPI proc
Slide 13: Business Review – Strive for Excellence
Business Review – Strive for Excellence Enhanced Foundation for Growth Reinforced organization Strengthened customer efficiency: outreach: • Restructured core business units • Expanded sales & marketing team • Regrouped product lines • Improved field engineering support • Optimized resources SSIL 20
Slide 14: Business Review – Highlights of Design-wins
Business Review – Highlights of Design-wins Smartphones / Smart Devices Tablets Smartphones Electronics Wearable Healthcare & Shelf Labels Healthcare Products Fitness Devices LCD e-writer Optical LTE Mobile Hotspot Viewfinder Tablets Smart Security Watches IP Cam Camcorder Baby Fish Finder Monitor L
Slide 15: Business Review – Blended Average Selling Price
Business Review – Blended Average Selling Price 2013 blended ASP: US$0.61, down ~4% YoY (’12: US$0.63) SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 15
Slide 16: Business Review – Product Shipments
Business Review – Product Shipments Total unit shipments in 2013 ~ 91million units SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 16
Slide 17: Business Review – 2013 Performance
Business Review – 2013 Performance New TFT LCD display drivers: scored design wins for HD smartphones Mobile Metal Oxide TFT LCD display drivers: started pilot shipment Display In-cell Touch TFT LCD display drivers: undergoing qualification Unit shipment reduced due to decreased demand for lower res
Slide 18: Business Review – 2013 Performance
Business Review – 2013 Performance Increased unit shipment E-paper: • Launched new AMEPD display drivers and scored Advanced design wins OLED: Display • Enhanced portfolio & diversified applications • Scored design wins with various smart devices • Launched qHD display driver – for China’s 1st AMOLE
Slide 19: Outlook
Highlights Financial Review Business Review Outlook SSIL 2013 Annual Results Announcement 20 Mar 2014 P. 19
Slide 20: Outlook – Smartphones/Tablets
Outlook – Smartphones/Tablets Mobile Display High Resolution TFT LCD Display Drivers • HD720/WXGA TFT LCD display drivers: ramp up shipment • Metal Oxide TFT LCD display drivers: start mass production • In-cell Touch TFT LCD display drivers: complete qualification and start mass production • More ne
Slide 21: Outlook – Smart TV
Outlook – Smart TV Large Display For 31.5” LCD TV • Continue mass production For 18.5” HD monitors & 21.5” FHD monitors • Complete qualification and start mass production Explore New Opportunities • Continuous outreach for more new business opportunities in China SSIL 2013 Annual Results Announcemen
Slide 22: Outlook – Smart Devices
Outlook – Smart Devices Advanced Display Electronic Shelf Labels • Launch higher resolution AMEPD drivers • Develop segment-type EPD drivers Wearable Devices Other Smart • Various display solutions to capture growing markets: Devices • Smart watches • Healthcare & fitness devices OLED Lighting • Dev
Slide 23: Summary
Summary Global economy recovering and market confidence Overall growing Good market potential for target smart display applications Remain cautiously optimistic Gross Profit Stay in line with industry Margin Operating Continue monitoring & investing to boost focused product Expenses applications Str
Slide 24: Thank You
Thank You Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com
Solomon Systech (International) — FY2013 Earnings Presentation on 6ix