Global-Tech Advanced Innovations Reports First Quarter Results for Fiscal 2010

• Press Release
• Source: Global-Tech Advanced Innovations Inc.
• On 8:00 am EST, Monday November 9, 2009

HONG KONG--(BUSINESS WIRE)--Global-Tech Advanced Innovations Inc. (NASDAQ:GAI - News) today announced its net sales and earnings for the quarter ended June 30, 2009 (the Company’s first quarter of fiscal 2010).

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Symbol	Price	Change
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Net sales for the quarter ended June 30, 2009 were $25.7 million, compared to $26.8 million for the corresponding quarter in fiscal 2009. Included in net sales for the first quarter of fiscal 2010 were sales of approximately $16.5 million of floor care products and $7.7 million of electronic components.

Net income for the first quarter of fiscal 2010 was $1.2 million, or $0.38 per share, compared to a net income of $1.9 million, or $0.63 per share, for the first quarter of fiscal 2009. Included in net income for the first quarter of fiscal 2009 was a non-recurring gain of $1.8 million related to pending litigation. Excluding this non-recurring gain, net income for the first quarter of fiscal 2009 was $0.01 million, or $0.04, per share.

John C.K. Sham, President and Chief Executive Officer, said, “Despite the decrease in net sales, we are pleased to report that our gross profit margins for the first quarter of fiscal 2010, when compared to the corresponding quarter in fiscal 2009, improved from 9% to 17%. Additionally, our new telecommunication manufacturing service business generated $1.5 million in sales with significant operating income.”

Mr. Sham continued, “Our efforts on improving profitability through better product mix and efficiency, coupled with our focus on cost control management, have positively impacted our overall operating results. In particular, sales of higher resolution camera modules for cellular phones have grown substantially and we expect this improved mix to continue for the remainder of 2009.”

Mr. Sham concluded, “Despite the current challenging economic conditions, we expect net sales in our floor care, electronic component and telecommunication manufacturing service businesses to remain relatively stable for the balance of the year. We continue to believe that the Company’s prospects are promising and intend to utilize our available resources to position the Company for long-term growth, in spite of the current adverse market conditions.”

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 industry 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
http://www.businesswire.com/cnn/gai.shtml