Global-Tech Advanced Innovations Reports Second Quarter Results; Company Positioned for Long-Term Growth.HONG KONG Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov. -- Global-Tech Advanced Innovations Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :GAI GAI General Applet Interface GAI Giustizia e Affari Interni (Italian) GAI Global-Tech Appliances Inc GAI Guild of Architectural Ironmongers GAI Global Atmospherics Inc GAI General Ability Index GAI Great American Insurance ) today announced its net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight and earnings for the fiscal quarter ended September 30, 2008 (the Company's second quarter of fiscal 2009). Net sales for the quarter ended September 30, 2008 were $28.6 million, compared to $31.1 million for the corresponding quarter in fiscal 2008. Net loss was $1.8 million, or $0.15 per share, compared to net income of $0.4 million, or $0.03 per share, for the prior corresponding fiscal period. Net sales for the six months ended September 30, 2008 increased 6.1% to $55.4 million, when compared to the corresponding six-month period in fiscal 2008. Net sales for the first half of fiscal 2009 included sales of approximately $20.1 million of CMOS (Complementary Metal Oxide Semiconductor) Pronounced "c-moss." The most widely used integrated circuit design. It is found in almost every electronic product from handheld devices to mainframes. (complementary metal oxide semiconductor See CMOS. (integrated circuit) Complementary Metal Oxide Semiconductor - (CMOS) A semiconductor fabrication technology using a combination of n- and p-doped semiconductor material to achieve low power dissipation. ) camera modules (CCMs), which were up approximately 22% from the $16.5 million recognized in the first half of fiscal 2008. Net income for the first half of fiscal 2009 was $0.1 million, or $0.01 per share, compared to a net loss of $3.4 million, or $0.28 per share, for the first half of fiscal 2008. Included in net income for the first half of fiscal 2009 was a non-recurring gain of $1.8 million related to pending litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. . Net income for the first half of fiscal 2008 included a non-recurring loss of $2.8 million, also related to pending litigation. John C.K. Sham, President and Chief Executive Officer, said: "The net loss incurred for the second quarter of fiscal 2009 resulted primarily from the negative impact of higher commodity prices and the continuing appreciation of the Renminbi. Additionally, the global economic downturn has resulted in decreases in consumer demand." Mr. Sham continued, "Like many companies, we are not immune to the global economic climate and continuing financial crisis. Based on current market conditions, we do not expect our overall financial results for fiscal 2009 to improve compared to fiscal 2008, but are hopeful that our new businesses will soon enhance the Company's financial performance and profitability." Mr. Sham concluded, "We believe that the Company's fundamentals are sound. In response to the current economic climate, management will continue to reduce costs and adopt a more prudent approach on expenditures. We believe that the Company's prospects are promising and we intend to continue to use available resources to position the Company for long-term growth, despite current adverse market conditions." Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs) and floor care products. The primary focus of its subsidiaries is to develop and market high-quality products for the communications and medical industries in China and export such products to markets in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. , Europe, and other countries throughout the world. Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "should," "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company's customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. of the Chinese Renminbi
"CNY" and "RMB" redirect here. For other uses, see CNY (disambiguation) and RMB (disambiguation). , the imposition by China's trading partners of economic sanctions Economic sanctions are economic penalties applied by one country (or group of countries) on another for a variety of reasons. Economic sanctions include, but are not limited to, tariffs, trade barriers, import duties, and import or export quotas. and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances. [TABLE OMITTED] [TABLE OMITTED] |
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