| Taipei, Taiwan,
April 28, 2006 – System General Corporation
(TAIEX: 6280) today announced revenue and net income
for the quarter ending March 31, 2006. First-quarter
revenue reached NT$310.4 million with after-tax net
income of NT$46.2 million, or NT$0.83 per fully-diluted
share.
On a year-over-year
comparison basis, the first quarter results represent
a 17.6% increase in revenue and a 7.3% increase in
after-tax net income. However, due to increased expenditure
for legal services, operating income decreased by
8.2%. And because the first quarter is traditionally
low season for the IT industry, revenue decreased
by 5.4% compared to the previous quarter.
The ITC patent
infringement litigation between System General and
Power Integrations (PI) (ITC-337-TA-541) remains in
process. It went on trial in January and thus resulted
in an initial increase in legal fees for the first
quarter. Nevertheless, it’s not expected that
total annual legal expenses for 2006 will be higher
than for the previous year. And regardless of the
litigation process, System General still earned after-tax
net income of NT$46.2 million and fully-diluted earnings
per share came to NT$0.83 per share.
First quarter
income statement highlights:
|
| |
|
|
|
|
In
thousands of NT$ |
|
|
Highlights |
Q1
of 2006 |
Q1
of 2005 |
Difference |
Q4
of 2005 |
Difference |
|
Net Sales |
310,409 |
263,960 |
17.60% |
328,051 |
-5.38% |
|
Gross Profit |
159,097 |
126,447 |
25.82% |
172,276 |
-7.65% |
|
Operating Income |
56,345 |
61,374 |
-8.19% |
78,134 |
-27.89% |
|
Net Income
before Tax |
47,847 |
50,770 |
-5.76% |
73,899 |
-35.25% |
|
Net Income
after Tax |
46,117 |
42,970 |
7.32% |
77,549 |
-40.53% |
|
EPS |
0.83 |
0.78* |
|
1.41* |
|
|
*
The EPS is calculated using a weighted
average of shares outstanding in Q1. |
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|
|
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