presentation pdf - Solomon Systech Limited

SummarySSIL 2010 Annual Results Announcement24Mar2011P. 3

Results summaryUnit shipment up 53% to 142 million unitsSales grew by 37% to US$84.7 millionGross profit grew by 25% to US$25.6 millionNet profit US$1.0 million Book to bill ratio for the year was 1.0Basic earnings per share 0.33 HK centThe Board recommended no final dividendSSIL 2010 Annual Results Announcement24Mar2011P. 4

Financial ReviewSSIL 2010 Annual Results Announcement24Mar2011P. 5

Net cash delta analysis ’10 vs ‘09Net Cash @ 31 st Dec: US$79.6m (’10) vs $92.8m (‘09) - US$13.2mMajor Cash Outflow Business Operating Activities - US$ 2.7m Plant, Property & Equipment - US$ 4.1m Financial Assets Net Increase - US$ 5.0m Dividend Payout - US$ 3.2mMajor Cash Inflow Interest Received + US$ 1.6mSSIL 2010 Annual Results Announcement24Mar2011P. 9

Business ReviewSSIL 2010 Annual Results Announcement24Mar2011P. 10

Blended average selling price2010 blended ASP = US$0.60, down 11% YoY0.900.800.8120%HoHYoYBlended Unit ASP (US$)0.700.600.500.400.300.200.100.670.60Blended ASP Change10%0%-10%-20%1H08 2H08 1H09 2H09 1H10 2H100.002008 2009 2010-30%SSIL 2010 Annual Results Announcement24Mar2011P. 11

Examples of 2010 design-winsNew Customers, New Products, New ApplicationsMobile Display IC Touch Panel IC Advanced Display ICUSB Bank KeySmartphonePersonalNavigationDeviceAndroidPhoneMobile InternetDeviceElectronicGuitarMP3 PlayersPrice TagDisplay System SolutionGreen PowerAndroid MobileInternet DevicePico-projectorDisplay RemoteControlLED Light BulbLED Spot LightSSIL 2010 Annual Results AnnouncementLED StreetLamp24Mar2011P. 13

OutlookSSIL 2010 Annual Results Announcement24Mar2011P. 14

2011 OutlookSalesExpect new market applications and demand created by the latest electronics advancementin smartphones and tablet PCs with touch sensing function, and green energyAnticipate growth in diversified businessGain new business through synergies with China based customersGross profit marginStay in line with industryOperating expensesContinue monitoringInvest in focused R&D projects2011 Challenges & FocusRiskGenerate revenue with our new productsContinue new product and technology developmentDedicate strategic effort to expand China businessManage supply chain capacity and lead timeJapan 311 earthquake - No impact on delivery for orders on hand but need close monitoringfor the coming months due to unforeseeable changes in supply chainSSIL 2010 Annual Results Announcement24Mar2011P. 15

Business PlanDisplay ICMobile DisplayDriver ICAddress high growth market segmentlike smartphones and tablet PCs of highresolution, medium size display.SmartphoneTablet PCsTouch Panel IC (Capacitive Touch)Volume shipment of multi-touch ICstarted from 1Q 2011 for smartphone.A portfolio of new products to come outCost effective solutions for simple singletouch applicationsDimmer ControlRemote Control withTouch ScreenAdvanced 10 points touch sensingtechnology for medium size displayWindow Mobile and tablet PCapplications.Tablet Desk PhoneMulti-touchApplicationsSSIL 2010 Annual Results Announcement24Mar2011P. 16

Business PlanDisplay IC (cont’d)Advanced DisplayContinue PMOLED leadership and expandapplications from consumer electronics toindustrial appliances such as power meterExtend volume shipment of e-Paper IC fromelectronic shelf labels to health care productand storage deviceOLED Power MeterHealth Care ProductLarge DisplayAlign to China’s emerging large TFT displayand TV industryComplete qualification for production of TFTdriver ICsLCD TVSSIL 2010 Annual Results Announcement24Mar2011P. 17

Business PlanSystem SolutionsDisplay System Solution Increase sales of multimedia ICs (MagusCore TM )via pico-projector and Android mobile internetdevice design-winsExtend mobile system solution shipment in verticalmarket segments to include senior mobile, GPStracking system and Android applicationsAndroid Mobile Internet DeviceGreen PowerGenerate volume shipment of LED driver ICs andpower modules for retrofit lightingComplete qualification for production of LEDbacklight units for monitor / TV applicationsLED Light BulbSSIL 2010 Annual Results Announcement24Mar2011P. 18

Thank YouSolomon Systech (International) LimitedStock code: 2878www.solomon-systech.comSSIL 2010 Annual Results Announcement24Mar2011P. 19