Solomon Systech (International) Limited 2007 Annual Results - - PowerPoint PPT Presentation

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solomon systech international limited 2007 annual results
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Solomon Systech (International) Limited 2007 Annual Results - - PowerPoint PPT Presentation

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Solomon Systech (International) Limited 2007 Annual Results Announcement 27 March 2008 Hong Kong Table of contents ! Summary ! Financial Review ! Business Review ! Outlook SSIL 2007 Annual Results Announcement 27Mar2008 P. 2 Summary SSIL

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Solomon Systech (International) Limited 2007 Annual Results Announcement

27 March 2008 Hong Kong

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SSIL 2007 Annual Results Announcement 27Mar2008

Table of contents

! Summary ! Financial Review ! Business Review ! Outlook

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Summary

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! Unit shipment 173mu ! Sales US$165 million ! Net profit US$10 million ! Basic EPS 3.3 HK cents ! Final dividend per share 2 HK cents ! Total dividend per share for the year 3 HK cents ! Book to Bill ratio 0.64 ! Global market share in mobile phone display ICs

around 11%

Results summary

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Financial Review

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Profit and loss

1.0 0.64 Book to Bill ratio 23.3% 23.9% Gross margin 6.0 3.0 Dividends per share 7.1 3.3 Earnings per share*

(HK cents)

8.8% 6.2% Net margin

  • 54%

22.4 10.2 Net profit

  • 33%

59.3 39.5 Gross profit

  • 35%

254.1 165.0 Sales

Change 2006 2007 (US$ million) YoY Twelve months ended 31 Dec

* Basic EPS calculation is based on the weighted average number of shares for the year

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SSIL 2007 Annual Results Announcement 27Mar2008

Balance sheet

(HK cents)

  • 4%

179.9 172.1 Shareholders’ funds +13% 121.5 137.8 Net cash +16% 38 44 Net cash per share

  • 4%

57 55 Shareholders’ funds per share N/A Nil Nil Total borrowings

  • 8%

221.1 202.4 Total assets

YoY Change As at 31 Dec 2006 As at 31 Dec 2007 (US$ million)

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SSIL 2007 Annual Results Announcement 27Mar2008

Financial remarks

Sales 35% Unit shipment 25% YoY Blended ASP 14% YoY Net profit 54% Gross profit 33% YoY Operating expense 7% YoY

  • - Raised R&D 13% while lowered SG&A 19.9% YoY

Capex US$3.5m US$2.6m Strategic Investment US$0.9m Plant / Property /Equipment Key Factors

  • - Gross profit margin

23.9% (2006: 23.3%)

Interest income 27% YoY

  • - US$8m, partially offset operating income decline
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Business Review

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Blended average selling price

! 2007 blended ASP = US$0.95, down 14% YoY

! Sequential decline rate moderating

1.54 1.96 1.5 1.11 0.95 0.5 1 1.5 2 2.5 2003 2004 2005 2006 2007 Blended Unit ASP (US$)

  • 50%

0% 50% 1H04 2H04 1H05 2H05 1H06 2H06 1H07 2H07 Blended ASP Change HoH YoY

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SSIL 2007 Annual Results Announcement 27Mar2008

Unit shipment by product line

!

Mono & Color STN: Declined as more mobile phones switched to m-TFT

!

m-TFT: Up 58% YoY as design-wins ramped

!

OLED: Up 32% YoY with sustained leadership as the industry stablized

!

New Display Applications: Up 63% as design-wins beyond mobile phone

!

L-TFT: Kept design-in efforts with target customers

!

Display System: First million units shipped

Note: Others include large panel TFT (L-TFT) driver IC and other IC products

50 100 150 200 250 300 2003 2004 2005 2006 2007 IC unit shipment (mu) mono STN CSTN m-TFT OLED New Display System Others 71 157 263 230 173 0% 20% 40% 60% 80% 100% 2003 2004 2005 2006 2007 Unit shipment distribution mono STN CSTN m-TFT OLED New Display System Others

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Examples of 2007 design-wins

Study Machine GPS Mobile Phone

Mobile Display (STN, TFT) New Display Display System

Bluetooth Earpiece Mobile Phone

OLED

MP4 Digital Photo Frame Wristwatch Electronic Shelf Label Automotive mirror with GPS / Radio Locator Microdisplay Eyewear

New Customers, New Products, New Applications

MP4

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Outlook

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1H 2008 Outlook

! Sales year-on-year

! Challenging Book to Bill ratio

! Gross profit margin

! Pressure from market ASP erosion

! Operating expenses

! Under control; Invest in R&D ! Supplement with interest income

! New businesses or customers

! Continue development; take time to ramp

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! Display Panel

Mobile Display

! m-TFT ! Audio / Video equipments,

GPS, mobile TV

! OLED ! Wireless peripherals, MP4,

industrial New Display

! E-paper ! Electronic shelf label,

IC card, storage devices

Future Growth Enablers

Customer, Product and Application Diversification

Mobile TV Bluetooth Earpiece GPS Electronic Shelf Label IC Card MP4 Storage Device

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! Display System

! Total system solutions – including multimedia system IC,

software, hardware, end product reference design

! Focus applications ! Digital photo frame, portable media

player, mobile digital TV, personal navigation device

Future Growth Enablers (Cont’d)

Customer, Product and Application Diversification

Personal Navigation Device Digital Photo Frame Mobile Digital TV Portable Media Player

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Thank You

Solomon Systech (International) Limited Stock code: 2878 www.solomon-systech.com