By a News Reporter-Staff News Editor at Electronics Newsweekly -- Global-Tech Advanced Innovations Inc. (NASDAQ:GAI) announced its financial results for the fiscal year ended March 31, 2014.
Net sales for fiscal 2014 were $62.7 million, compared to net sales of $66.8 million in fiscal 2013. Net loss for fiscal 2014 was $10.7 million, or $3.47 per share, compared to a net loss of $2.1 million, or $0.65 per share, in fiscal 2013.
Net sales for the fourth quarter of fiscal 2014 were $17.7 million, compared to $13.9 million in the corresponding period in fiscal 2013. Net loss for the fourth quarter of fiscal 2014 was $3.2 million, or $1.04 per share, compared to a net loss of $2.3 million, or $0.75 per share, for the corresponding quarter in fiscal 2013.
As previously announced, the Company's electronic manufacturing services (EMS) business became a discontinued operation in December 2013. The loss from discontinued operations in fiscal 2014 was $5.5 million, compared to $2.6 million in fiscal 2013.
As of March 31, 2014, the Company had leased approximately 76,000 square meters of excess production space out of 122,000 square meters that were no longer utilized as a result of the discontinuation of the EMS business in fiscal 2014 and the home appliance business in fiscal 2012. Subsequent to fiscal year end, the Company entered into a five-year contract to lease 26,000 square meters of production space (including equipment) located in the facility that previously housed our EMS business. In spite of contractual obligations, leasing income will ultimately depend upon the continuing financial viability of the lessee's operations.
John C.K. Sham, the Company's President and Chief Executive Officer, said: "During fiscal 2014 our remaining operations, namely electronic components, did not generate sufficient income to cover expenses, primarily due to pricing concessions caused by intense market competition. Despite an increase in unit volume of approximately 8%, net sales declined approximately 7%."
Mr. Sham continued, "We expect unit volume within our electronic components business to grow in fiscal 2015 and, provided that we are able to improve yields and increase productivity in our new COB operation, the electronic components business should gradually return to profitability. As in prior years, innovation will continue to be a driving force in improving our financial results."
Mr. Sham concluded, "We expect that income generated through the leasing of those portions of our facilities that previously housed our discontinued operations will be sufficient to cover a majority of the expenses associated with maintaining our factory complex in Dongguan, China." While leasing our excess production space is currently being utilized to generate income, we are also exploring other viable options which can fully recognize and create more value from this property."
Keywords for this news article include: Electronic Components, Global-Tech Advanced Innovations Inc.
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