Your Testing Quality is Our Commitment. CHROMA ATE INC. 1Q Investor Conference. Paul Ying, CFO. 24 th April, 2012

Transcription

1 Your Testing Quality is Our Commitment. CHROMA ATE INC Q Investor Conference Paul Ying, CFO 24 th April,

2 Disclaimer This presentation contains some forward-looking statements that are subject to substantial risks and uncertainties. Typically, these statements contain words such as anticipate, believe, could, estimate, expect, intend, plan, forecast, project, predict, potential, continue, may, should, will, and would or similar words. You should consider these forward-looking statements carefully because such statements are only our expectations or projections about future events, and actual results may differ materially from those expressed or implied by such statements. The forward-looking statements in this presentation include, but are not limited to, growth rates for various markets estimated by third party sources, future products and technology development, widespread market acceptance of the hosted delivery model, future revenue growth and profitability. You should be cautioned that the forwardlooking statements are no guarantee of our future performance. The forward-looking statements contained in this presentation are made only as of the date of this presentation and we undertake no obligation to update the forward-looking statements to reflect subsequent events or circumstances, except as required by law. This presentation and the information contained herein are the property of Chroma Ate Inc. 2

3 Agenda Corporate Profile Quarterly Highlights Financial Review Operation Highlights Q&A 3

4 CORPORATE PROFILE 4

5 Corporate Profile Founded in 1984, a world leading own brand Sales Revenues R&D Expenses R&D Expenses in % of Sales Revenues turnkey test & automation solution provider, Parent Only 5,640 5,338 specialized in electronics test and measurement instruments and system. Products cover test and measurement instruments and system for various 4,208 4,158 13% 14% 12% industries, and a turnkey solution of an integration of test and measurement with automation and manufacturing execution systems (MES). In Million NTD 11% 3,444 11% Key success: Precision, Reliability, Innovation 2011 Sales Revenues: NT$5,338 million 2011 Net Income: NT$1,523 million Total 1,293 employees, 39% in R&D (as December, 2011)

6 Financial Performance Consolidated Sales Revenues EPS Net Profit Gross Margin In Million NTD, Except EPS in NTD Parent Only Sales Revenues 14,886 14,148 12,630 12,228 10, * 4.06 * 3.38 * 2.50 * 5,640 5,338 4,208 4,158 3,444 In Million NTD Parent Only 59% 1,538 33% * 54% 1,105 24% 51% % Operating Margin 1,812 55% 1,523 52% 29% 25% * 2008 ~ 2011 EPS has included the employee bonus reserves * 2007 Operating margin adjusted, according to the payout of employee bonus. 6

7 Financial Performance Parent Only ROE 26% 5.22 EPS Dividend 5.05 * Cash dividend Stock dividend 19% 20% 4.06 * 18% 14% * 3.80 In NTD * * * 2007 ROE adjusted, according the payout of employee bonus * EPS has included the expenses of employee bonus. 7

8 Chroma Global Network Global Employees 1,578, Branch Offices x16, Distributors x58 Hong Kong : orld US : Irvine / Lake Forest CA. Europe : Netherlands / Finland Japan: Shin Yokohama China : Shenzhen / Dongguan / Xiamen / Suzhou Nanjing / Shanghai / Beijing / Chongqing 8

9 Product Mix A Turnkey Test and Automation Solution Provider Customized System 1.3% Customized System 1.6% Year 2010 Year 2011 * Services & Others included general services and government projects. 9

10 QUARTERLY HIGHLIGHTS FINANCIAL REVIEW 10

11 Quarterly Highlights 1Q 2012 Key Points Sales Revenue: $ 875 million, Sales Revenues 1,694 Gross Margin Operating Margin down 2% QoQ, down 40% YoY Gross Margin: 55% Operating Margin: 19% Net Income: NT$ 164 million, down 5% QoQ, down 59% YoY 1Q 2012 Highlights: In Million NTD 1,465 50% 26% 53% 29% 1,289 53% 24% 53% % % Gross margin and operating margin 15% improved QoQ. 1Q seasonality not strong, expected sales revenues pickup in 2Q. 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 11

12 1Q 2012 Income Statement (QoQ / YoY Comparison) Parent Only (In Million NTD, except for EPS in NTD) 1Q 2012 % 4Q 2011 % QoQ 1Q 2011 % YoY % % Net Sales % % (2%) 1, % (40%) Cost of Goods Sold (396) (45.3%) (421) (47.3%) (6%) (740) (50.5%) (46%) Gross Profit % % 2% % (34%) Operating Expenses: General & Administration (171) (19.5%) (186) (20.8%) (8%) (202) (13.8%) (15%) Research & Development (144) (16.5%) (152) (17.1%) (5%) (145) (9.9%) - Operating Income % % 24% % (57%) Non-Operating Income % % (49%) % (44%) Non-Operating Expenses (18) (2.0%) - - n/a (1) (0.1%) n/a Income (Loss) Before Tax % % (11%) % (59%) Income Tax (19) (2.2%) (32) (3.6%) (41%) (47) (3.2%) (60%) Net Income % % (5%) % (59%) EPS $ $ 0.46 (5%) $ 1.06 (59%) Non-operating Income included the gain from equity investments total of 17m (QoQ 68%), including 100% owned subsidiaries - Material: 6m (QoQ n/a ), MAS: 35m (QoQ 57%). Currency loss of 12m. 12

13 1Q 2012 Income Statement (Consolidated) Consolidated (In Million NTD, except for EPS in NTD) Q % Q % YoY % Net Sales 2, % 3, % (17%) Cost of Goods Sold (2,089) (72.9%) (2,486) (72.2%) (16%) Gross Profit % % (19%) Operating Expenses: General & Administration (393) (13.7%) (395) (11.4%) - Research & Development (155) (5.4%) (154) (4.5%) - Operating Income % % (44%) Non-Operating Income % % (69%) Non-Operating Expenses (45) (1.6%) (9) (0.3%) n/a Income (Loss) Before Tax % % (55%) Income Tax (40) (1.4%) (58) (1.7%) (31%) Net Income before Minority Interest % % (59%) Minority Interest 5 0.2% 7 0.2% (29%) Net Income % % (59%) 13

14 Balance Sheet Highlights & Financial Ratio Parent Only (In Million NTD) Balance Sheet Highlights Mar Dec / - % Cash & Short Term Investment % Inventory 1,362 1,373 - Short Term Debt % Long Term Debt Shareholders Equity 7,963 7,765 3% Total Assets 9,858 9,547 3% Inventory Turnover (Day) AR Turnover (Day) AP Turnover (Day) Net Debt to Equity (%) - - ROE (%) 8% 20% ROA (%) 7% 16% Cash Position 1Q Q 2011 QoQ 1Q 2011 YoY EBITDA (7%) 486 (52%) Cash Flow from Operation (66%) 13 n/a Free Cash Flow (329) 664 n/a (25) n/a All ROE + ROA has been annualized. Free Cash Flow = Net Cash Provided by Operating Activities + (Net Cash used by Investing Activities) 14

15 OPERATION HIGHLIGHT 15

16 Sales Breakdown By Testing Solution (Unit: Million NTD) 1Q 2012 % 4Q 2011 % QoQ 1Q 2011 % YoY Power Electronics Testing % % (22%) % (21%) Component Testing % % 3% % (30%) LCD Panel / Video Testing % % 50% % (6%) IC Testing % % 35% % (21%) LED Testing % % 55% % (81%) Solar Power Testing % % 162% % (77%) Customized System % % % (15%) Service & Others % % (7%) % (41%) Total % % (2%) 1, % (40%) 16

17 Sales Breakdown By Industries Innovation, Integration Capability, Market Penetration In million NTD / % of Sales $ 4,158 $ 3,444 $ 5,640 $ 5,338 $ 875 5% 17% 31% 35% 30% 48% 40% 44% 45% 40% * Clean Technology included solar, LED, battery cell formation and EV OEM business. 17

18 Year Q Guidance 1Q remains seasonality low, better visibility in coming quarters. Sales revenues are expected to grow in 2Q, mainly contribute from Power and Semiconductor. Increasing sales contribution from US, Europe and Japan to reach 30%, and recognition from global top-tier customers. Enhance turnkey solution design capability to be well position in the market and increase customers satisfaction. Dividend payout of NT$2.5 cash per share. 18

19 Innovations in Broad Testing Solutions 19

20 Innovation in Power Electronics Test Solution LED Power Driver ATS Programmable AC & DC sources Program non-liner I-V curve with LED load simulator Full function test with more than 20 built-in test items Meet Energy Star & IEC test requirement High efficiency Multi-UUT test for production line PV Inverter ATS Integrate all essential instruments for testing PV inverter Expandable from 2KW to 100KW range UUT 20+ built-in test items with one key execution Meet IEEE1547, UL1741, GB/T19939 test standard requirement Flexible software platform for test item edit and report generation Solar Array Simulator Extend power to 150KW in a rack Parallelable up to 1.5MW for solar farm inverter Software build in test standard EN50530 Real world weather simulation 20

21 Innovation in LCM, Video & Color Test Solution 3D Optical Profiler Patent Award 3D profile measurement function Modulated design Auto test measurement script for auto Multi-Functional 3D Optical Profiling System Patent 1D Thickness measurement function 2D Defect detection function 3D Profile measurement function In-line application Touch Panel Defect Inspection System Real-time thin-film automatic optical inspection Detection capabilities Bubble & Scratch In-line application 21

22 Innovation in LED Lighting Test Solution (1/2) LED Lighting AC/DC Burn-in Test System Patent Programmable AC source Multi-channels and individual measurement Real-time measurement Support more 250 x 7W LED bulbs Light-Decay (Lifetime) AC/DC Test System Patent Multi-channels and individual measurement Real-time measurement Support more 63 x 7W LED bulbs 22

23 Innovation in LED Lighting Test Solution (2/2) LED Luminaire In-Line Test System Patent High speed test and flicker measurement second per measurement) Standard light source Low error rate Turnkey In-Line Light Bulb/Tube Test & Automation Performance Vs. Integrating Sphere 5 Times higher throughput Bulb: 10 /min; 14,400/day (with load & unload automation) 50% Less footprint Mass production application: LED lamp, LED bulb, LED bar, LED streetlight, & other luminaries 23

24 Innovation in Electric Vehicle Test Solution EVSE (Electric Vehicle Supply Equipment) ATS Applicable for AC level 1 & AC level 2 EVSE Flexible hardware & software architecture Meets SAE J1772 requirement Credibility: Used by Taiwan Bureau of Standards, Metrology and Inspection 24

25 Innovation in Battery Cell/Pack Test Solution Battery Cell Reliability Test System Charge/Discharge mode High sampling rate High voltage/current accuracy Parallelable channel design Fully independent channel testing Redundant DC source design Regenerative Battery Pack Test System Patent Maximum 60 independent channels Regenerative efficiency: 85% Paralleable output for higher power 25

26 Innovation in Thermoelectric Test Solution TEC Controller Range: -50 to resolution and 0.3 absolute accuracy Bidirectional driving with >90% driving power efficiency Thermal Data Logger 1/8 /64 channels on-line data recording Temperature resolution up to 0.01 Full protection Heat Pipe ATS Using TEC technology Precise heat pipe working temperature control Heater up to 80W 40 to 90 seconds per test per port 26

27 The World for You & for Me Thank You! 27