Hsin Chu, Taiwan,
Fourth Quarter 2005 Unaudited Consolidated Financial Highlights
AUO Corporation ("AUO"or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 4Q 2005 and FY 2005. For the fourth quarter ended December 31, 2005, AUO’s consolidated revenue reached NT$72.8 billion (*US$2.2 billion), net income NT$11.5 billion, and basic EPS NT$2.02 per common share (US$0.62 per ADS unit).
Gross margin for the fourth quarter improved by 6.6 percentage points to reach 22.2%. This brought operating margin to 17.2% and EDBITA margin reached 31.3%. Mr. Max Cheng, Vice President and Chief Financial Officer of AU Optronics noted that AUO's delivery of a better than guided 4Q 2005 performance is attributed to the Company's remarkable market gain on the LCD TV business, strategic product mix, customer portfolio, cost competitiveness, manufacturing capability, advanced technology and innovative designs. TV segment has substantially grown from 22% of revenue in 3Q to 27% in 4Q, attributed to G6's smooth mass production of 32" and 37" LCD TVs.
On a sequential comparison, fourth quarter revenue increased 22.3% and net income increased 96.9%. On the year-over-year comparison, fourth quarter results represented a 84.3% increase in revenue, while net income turned from loss of NT$2.2 billion to profit of NT$11.5 billion.
For the year ended 2005, consolidated revenue reached NT$217.4 billion (US$6.6 billion), net income NT$15.6 billion, and basic EPS NT$2.77 per common share (US$0.84 per ADS).
LCD TV market will continue to be the major market driver. Edging forward, the Company’s complete generation fabrication facilities, complete product mix, and its underlying cost-saving structure reflect AUO's adaptability in this demanding market environment. These unique characteristics will jump-start AUO's competitive strength over its peers. Especially new generation wide-viewing angle AMVA technology, already under production, serves as an ideal solution for HDTV high picture quality needs - an upcoming trend not to be ignored. AU Optronics Taichung site new production lines are market driven specified. G6 fabrication facility (1500x1850mm glass substrate) is expected to deliver 75,000 substrates by 1Q and reach 120,000 by year-end 2006. G7.5 fabrication facility (1950x2250mm glass substrate) is expected to commence machine move-in by 2Q 2006 and begin production by year-end with 10,000 substrates capacity.
* Note: US$: NT$ 32.8