Global-Tech Advanced Innovations Reports Financial Results for Fiscal Year 2009

• Press Release
• Source: Global-Tech Advanced Innovations Inc.
• On 8:00 am EDT, Monday September 28, 2009

HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ:GAI - News) today announced its financial results for the fiscal year and fourth quarter ended March 31, 2009.

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Net sales for the fiscal year ended March 31, 2009 were $87.4 million, compared to $105.5 million in fiscal 2008. Net loss for fiscal 2009 was $5.8 million, or $1.91, per share, compared to a net loss of $4.4 million, or $1.45 per share, in fiscal 2008.

Net sales for the fourth quarter of fiscal 2009 were $16.7 million, compared to $27.1 million in the fourth quarter of fiscal 2008. Net loss for the fourth quarter of fiscal 2009 was $4.2 million, or $1.37 per share, compared to a net loss of $1.3 million, or $0.41 per share, in the fourth quarter of fiscal 2008.

John C.K. Sham, the Company’s President and Chief Executive Officer, said: “Due to the recent worldwide financial crisis, net sales of our floor care and electronic component businesses declined sharply during the second half of fiscal 2009 as most of our customers exercised excessive caution by dramatically reducing their orders, which adversely impacted our financial results in fiscal 2009.”

Mr. Sham continued, “During the final months of fiscal 2009, many of our customers gradually started to place orders which were more consistent with their normal procurement patterns. Since much of our fixed overhead cannot be readily reduced in response to changing economic conditions, significant operating losses were incurred during the second half of fiscal 2009.”

Mr. Sham concluded, “Despite the disappointing financial performance in fiscal 2009, we were successful in weathering the adverse economic conditions and operated our businesses with positive cash flow. Our cash, cash-equivalent investments and other cash-related instruments for fiscal 2009, when compared to fiscal 2008, increased by $4.4 million, or $1.46 per share, to $36.1 million, or $11.88 per share, and we continue to operate nearly debt free. Our floor care and electronic component businesses, at present, have started to recover despite profit margins still being lower than we would need to generate adequate returns. In addition, our electronic manufacturing service business with our telecommunications customers is progressing well and we are continuing our efforts to develop new businesses with higher profit margins so that we can return to profitability.”

Global-Tech Advanced Innovations Inc. is a holding company, owning subsidiaries that manufacture and market a diversified portfolio of products, such as complementary metal oxide semiconductor (CMOS) camera modules (CCMs) and floor care products. The primary focus of its subsidiaries is to develop and market high-quality products for the communications and medical industries in China and export such products to markets in North America, Europe, and other countries throughout the world.

Except for historical information, certain statements contained herein are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," “should,” "estimates," or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to, the impact of competitive products and pricing, demand for new and existing products in our core business, the financial condition of the Company’s customers, product demand and market acceptance especially of our new products, the success of new product development especially in the area of cellular phone components and solutions, compact camera modules and other pending projects, reliance on material customers, suppliers and key strategic alliances, the terms and conditions of customer contracts and purchase orders, availability and cost of raw materials, the timely and proper execution of certain business plans, including the plan to diversify and transform a portion of manufacturing capacity to higher-value, technology-oriented products, currency fluctuations, including the revaluation of the Chinese Renminbi, the imposition by China’s trading partners of economic sanctions and/or protective tariffs on Chinese manufactured goods, uncertainties associated with investments, the regulatory environment, fluctuations in operating results, the impact of changing global, political and economic conditions and other risks detailed from time to time in the Company's filings with the U.S. Securities and Exchange Commission including its most recent Report on Form 20-F. The Company does not undertake to update its forward-looking information, or any other information contained or referenced in this press release to reflect future events or circumstances.

Global-Tech USA, Inc.
Brian Yuen, 212-683-3320
investorrelations@global-webpage.com
Web Page:
http://www.businesswire.com/cnn/gai.shtml