British Virgin Islands-incorporated holding Global-Tech Advanced Innovations Inc. announced its financial results for the second quarter of fiscal year 2011. For the reported period ended September 30, 2010, net sales of the BVI company were US$25 million, as compared to US$29 million in the same period of the previous year. Also, in the second quarter of fiscal 2011 net loss of the company was US$0.9 million, or US$0.29 per share, compared to net income of US$1.6 million, or US$0.51 per share, reported by Global-Tech in the second quarter of fiscal 2010.
For the six months ended September 30, 2010, the BVI company reported net sales in the amount of US$50.8 million, compared to US$54.6 million in the corresponding six-month period of the last year. Net loss for the six months was US$0.1 million, or US$0.03 per share, compared to net income of US$2.7 million, or US$0.89 per share, for the first half of fiscal 2010.
Global-Tech’s President and CEO Mr. Sham said in his comments that the increased revenues from the electronic component and electronic manufacturing service businesses “were insufficient to offset the continued decline in net sales of our floor care business.” He also said that the “overall gross profit margin remains weak as operating costs, particularly labor and energy costs, continue to increase. This increase in costs was attributable, in part, to rising inflation that has been taking place in China. Additionally, our fixed cost absorption rate increased due to declining activity. Accordingly, the Company must continue to refine its focus on productivity and efficiency.”
By words of Mr. Sham, the company does not expect significant improvements in the floor care business during the remainder of fiscal year, and accordingly it is increasing its efforts to incorporate proprietary elements into the electronic component business and improve efficiencies in its EMS business. Also, Global-Tech continues its emphasis on the expansion of business in China.