Gross profit was NT$6,894 million (US$226 million), with gross margin of 7.3 percent. Operating profit was NT$658 million (US$22 million), with operating margin of 0.7 percent. AUO's net profit for the first quarter was NT$166 million (US$5 million). Net profit attributable to owners of Company was NT$259 million (US$9 million), with a basic EPS of NT$0.03 (US$0.01 per ADR).

In the first quarter of 2014, large-sized panel shipments totaled 29.18 million units, down by 3.3 percent quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were over 33.46 million units, representing an 18.7 percent decline from the fourth quarter of 2013.

Looking back to the first quarter, AUO's revenue was on the decline, affected by the traditional slow season and the prices for TV panels. However, the Company not only overcame the negatives, through the improvement of the product mix and cost structure, but also managed the inventory appropriately.

As a result, AUO continued to generate a net profit of NT$166 million, and maintained its operating margin and EBITDA margin at 0.7 percent and 16.8 percent, respectively. Meanwhile, its days of inventory stayed at a healthy level of 39 days.

Looking forward to the second quarter, industry supply and demand will hopefully gradually turn more favorable. The Company will continue to drive technology innovation and execute a profit-oriented product strategy, hoping to maximize the capacity value and to create solid long-term cash flows as well as a sound financial structure.