Sercomm Corp. · TWSE:5388
Sercomm — Q4 2008 Earnings Presentation
13 slides from Sercomm's earnings presentation, Mar 24, 2009
Slide 1: SerComm Corporation 4Q'08 Investor Conference
SerComm Corporation 4Q’08 Investor Conference March 24th, 2009
Slide 2: Agenda
Agenda - Welcome and Introduction - 4Q’08 & Year 2008 Financial Results - Business Update - Q&A
Slide 3: Safe Harbor Notice
Safe Harbor Notice The following presentation may contain forward-looking statements regarding, among other things, our financial condition, future expansion plans and business strategies based on our current expectations and projections about future events. Although we believe that these expectatio
Slide 4: 4Q08 Income Statement QoQ Comparison
4Q08 Income Statement QoQ Comparison Consolidated 2008 2008 NT$ Million 4Q % 3Q % Change Net Sales 2,081 100.0% 1,951 100.0% 6.7% Cost of Goods Sold 1,722 82.7% 1,677 86.0% 2.7% Gross Profit 359 17.3% 274 14.0% 31.0% Operating Expenses 248 11.9% 227 11.6% 9.3% Operating Profit 111 5.3% 47 2.4% 136.2
Slide 5: 4Q08 Income Statement YoY Comparison
4Q08 Income Statement YoY Comparison Consolidated 2008 2007 NT$ Million 4Q % 4Q % Change Net Sales 2,081 100.0% 2,557 100.0% -18.6% Cost of Goods Sold 1,722 82.7% 2,127 83.2% -19.0% Gross Profit 359 17.3% 430 16.8% -16.5% Operating Expenses 248 11.9% 271 10.6% -8.5% Operating Profit 111 5.3% 159 6.2
Slide 6: 2008 Income Statement
2008 Income Statement Consolidated 2008 2007 NT$ Million Amount % Amount % Change Net Sales 8,535 100.0% 10,255 100.0% -16.8% Cost of Goods Sold 7,196 84.3% 8,729 85.1% -17.6% Gross Profit 1,339 15.7% 1,526 14.9% -12.3% Operating Expenses 967 11.3% 913 8.9% 5.9% Operating Profit 372 4.4% 613 6.0% -3
Slide 7: Revenue Breakdown by Product
Revenue Breakdown Year 2007 Triple- Adapter by Product Play 16% 7% HR Other Year 2008 4% 17% BR Home 11% Triple-Play Adapter HG Router PS 38% 23% 6% 15% 7% Other 6% Business Home Router Print Server Gateway 12% 5% 33%
Slide 8: Balance Sheet
Balance Sheet Consolidated December 31, 2008 December 31, 2007 NT$ Million Amount % Amount % Cash Equivalents 1,319 24% 1,256 24% A/R 1,316 24% 1,360 26% Inventory 796 14% 802 15% Fixed and Other Assets 2,063 37% 1,764 34% Long-term Investment 47 1% 48 1% Total Assets 5,541 100% 5,230 100% Loan 579
Slide 9: Consolidated Cash Flow
Consolidated Cash Flow NT$Million December 31, 2008 December 31, 2007 -Net profit 329 539 -Depreciation & Amortization 184 165 -Other Op Sources/(Uses) (162) 10 From Operation 351 714 -L-T Investment 0 0 -Fixed Assets (170) (161) -Other Investing Sources/(Uses) (184) (66) From Investment (354) (227)
Slide 10: 2008 Business Recap
2008 Business Recap Solid Market Leading Position in Broadband Networking Equipment Market despite Slow Demand in 2H08 - Total shipment of 9 million units of networking products for year 2008 Better Product Mix and Operation Initiatives Contributed to Gross Margin Improvement - Year 2008: 15.7%
Slide 11: 2008 Operation Recap
2008 Operation Recap Asset-light Business Model has Ensured Maximum Flexibility during Economic Recession - Postpone Factory Expansion Plan and Nankang Office Purchase Plan to ensure ample operating cash - Cash Equivalents of NT$1.32 BN as of Dec. 31, 2008 - Retract outsourcing manufacturing to en
Slide 12: 2009 Business Outlook
2009 Business Outlook Home Networking Upgrade Demand Driven by IP Video Services and Fixed and Mobile Convergence - New services and New business models - Firmware integration capabilities will continue to play a critical role - Expect increasing sales contribution from Service Providers/Telcos
Slide 13: Q&A
Q&A ~ j- = Cc O/TINN www.sercomm.com Embedded Server Provider