Sercomm Corp. · TWSE:5388
Sercomm — Q4 2007 Earnings Presentation
15 slides from Sercomm's earnings presentation, Mar 5, 2008
Slide 1: SerComm Corporation 4Q'07 Investor Conference
SerComm Corporation 4Q’07 Investor Conference March 5th, 2008
Slide 2: Agenda
Agenda - Welcome and Introduction - 4Q’07 & 2007 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: 4Q07 Income Statement YoY Comparison
4Q07 Income Statement YoY Comparison Consolidated* 2007 2006 NT$ Million Q4 % Q4 % Change Net Sales 2,557 100.0% 2,804 100.0% -8.8% COGS 2,106 82.4% 2,410 85.9% -12.6% Gross Profit 451 17.6% 394 14.1% 14.5% Operating Expenses 271 10.6% 231 8.2% 17.3% Operating Profit 180 7.0% 163 5.8% 10.4% Non-oper
Slide 5: 4Q07 Income Statement QoQ Comparison
4Q07 Income Statement QoQ Comparison Consolidated* 2007 2007 NT$ Million Q4 % Q3 % Change Net Sales 2,557 100.0% 2,518 100.0% 1.5% COGS 2,106 82.4% 2,118 84.1% -0.6% Gross Profit 451 17.6% 400 15.9% 12.8% Operating Expenses 271 10.6% 233 9.3% 16.3% Operating Profit 180 7.0% 167 6.6% 7.8% Non-operati
Slide 6: 2007 Income Statement
2007 Income Statement Consolidated* 2007 2006 (NT$ MN) Amount % Amount % Change Net Sales 10,255 100.0% 9,133 100.0% 12.3% Cost of Goods Sold 8,638 84.2% 7,982 87.4% 8.2% Gross Profit 1,617 15.8% 1,150 12.6% 40.6% Operating Expenses 913 8.9% 723 7.9% 26.3% Operating Income 704 6.9% 427 4.7% 64.9% Ne
Slide 7: Revenue Breakdown by Product
Revenue Breakdown Year 2006 by Product Adapter Other 10% HR 28% 5% Year 2007 BR 7% PS 7% Other Triple-Play Adapter HG 43% 4% 16% 7% Business Home Router Router 11% 17% Print Server 7% Home Gateway 38%
Slide 8: Historic Sales Revenue
Historic Sales Revenue Consolidated * 10,255 Unit: NT$ Million 9,133 CAGR = 46% 5,670 5,012 3,799 1,886 717 928 2000 2001 2002 2003 2004 2005 2006 2007 * Consolidated 2007 sales revenue is pre-audited
Slide 9: Balance Sheet
Balance Sheet Consolidated* December 31, 2007 December 31, 2006 NT$ Million Amount % Amount % Cash Equivalents 1,256 24% 887 18% A/R 1,440 28% 1,429 29% Inventory 802 15% 1,204 24% Fixed and Other Assets 1,684 32% 1,433 29% Longterm Investment 48 1% 55 1% Total Assets 5,230 100% 5,008 100% Loan 227
Slide 10: Consolidated Cash Flow
Consolidated Cash Flow NT$Million December 31, 2007 December 31, 2006 -Net profit 539 354 -Depreciation & Amortization 165 147 -Other Op Sources/(Uses) 10 94 From Operation 714 595 -L-T Investment 0 0 -Fixed Assets (161) (170) -Other Investing Sources/(Uses) (66) (55) From Investment (227) (225) -Ca
Slide 11: Historic ROE and Shareholder's Equity
Historic ROE and Shareholder’s Equity 3,000 NT $ MN 30% Consolidated 25.6% 25.45% 2,500 2,381 25% 20.2% 20.4% 19.7% 2,000 17.7% 1,852 20% 1,732 1,500 1,466 15% 11.2% 1,284 1,010 1,000 10% 703 539 500 352 326 354 5% 152 232 72 0 0% 2001 2002 2003 2004 2005 2006 2007 Stockholders' Equity Net Income R.
Slide 12: 2007 Business Recap
2007 Business Recap Solid Market Leading Position in Broadband Networking Equipment Market - Total shipment of 11 MN units of networking products for year 2007 - Over 3.5 MN units of ADSL Gateway shipped in 2007 - Over 1.1 MN units of Triple-Play shipped in 2007 Successfully Improve Gross Margin
Slide 13: 2007 Business Recap
2007 Business Recap Market Share Gain in SMB Market with Increasing Sales of Business Router - 66% year-over-year sales growth in 2007 IP Surveillance - 139% year-over-year sales growth in 2007 - Design wins from global leading networking companies - Full spectrum of product offering to cover bo
Slide 14: 2008 Business Outlook
2008 Business Outlook Growing Demand Driven by Prevailing IP Convergence Trend and Next-generation Network Infrastructure Construction - Next-Generation Network Technologies Imperatives - New applications from service providers - Firmware integration capabilities will play a critical role To Enh
Slide 15: Q&A
Q&A ~ j- = Cc O/TINN www.sercomm.com Embedded Server Provider