Consolidated revenues in the second quarter of 2014 were NT$102,042 million (US$ 3,416 million), up 8.8% from the previous quarter. Gross profit was NT$10,616 million (US$355 million), with gross margin of 10.4%. Operating profit was NT$3,907 million (US$131 million), with operating margin of 3.8%. AUO’s net profit for the second quarter was NT$4,024 million (US$135 million). Net profit attributable to owners of the Company was NT$4,033 million (US$135 million), with a basic EPS of NT$0.42 (US$0.14 per ADR).

For the first half of 2014, AUO reported consolidated revenues of NT$195,844 million (US$6,557 million), with net profit of NT$4,190 million (US$140 million) or a basic EPS of NT$0.45 (US$0.15 per ADR).

In the second quarter of 2014, large-sized panel shipments totaled 28.85 million units, slightly down by 1.1% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were over 46.30 million units, representing a 38.4% increase from the first quarter of 2014.

Looking back to the second quarter, thanks to the commercial PC replacement cycle and the TV demand driven by FIFA World Cup, demand for panels generally exceeded the supply, and panel prices gradually increased. Amid the tight capacity across all fronts, AUO focused on the optimization of its product mix. Not only did the shipments of small-and-medium-sized panels grow significantly, but its average TV panel size also hit another record high, rising by around 1.8 inches compared to last quarter.

Owing to the aforementioned factors, the Company’s operating margin and EBITDA margin improved to 3.8% and 18.0%, respectively, and its net profit expanded substantially to NT$4,024 million. In the meantime, its days of inventory lowered down further to 36 days, a record low in four-and-half years.

With the third quarter entering the stocking period of National Day Golden Week in China and the traditional holiday season in Europe and the U.S., the demand for panels will hopefully be sustained. The Company will continue to progress along the four principle aspects of “fashion and style, high specifications, integration, and commercial applications”. Through the continuous technological advancement to develop differentiated and high value-added products, the Company hopes to maximize the value of the limited capacity and in turn establish a solid, long-term profit model.