AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its unaudited consolidated financial results for the third quarter of 2014⁽¹⁾.

Consolidated revenues in the third quarter of 2014 were NT$106.89 billion, up 4.7% from the previous quarter. Gross profit was NT$15.38 billion, with gross margin of 14.4%. Operating profit was NT$8.78 billion, with operating margin of 8.2%. AUO's net profit for the third quarter was NT$7.30 billion. Net profit attributable to owners of the Company was NT$7.33 billion, with a basic EPS of NT$0.76⁽²⁾.

In the third quarter of 2014, large-sized panel⁽³⁾ shipments totaled 29.48 million units, up by 2.2% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were around 48.23 million units, representing a 4.2% increase from the second quarter of 2014.

For the first nine months of 2014, AUO reported consolidated revenues of NT$302.73 billion, with net profit of NT$11.49 billion or a basic EPS of NT$1.21⁽²⁾.

AUO's unaudited consolidated results for the third quarter of 2014 were highlighted as below：

• Revenues of NT$106.89 billion, up 4.7% quarter-over-quarter
• Net profit of NT$7.30 billion
• Basic EPS of NT$0.76⁽²⁾
• Gross margin was 14.4%
• Operating margin was 8.2%
• EBITDA⁽⁴⁾ margin was 21.2%

Looking back to the third quarter, thanks to the inventory stocking for Golden Week Holiday in China and the traditional holiday season in Europe and the U.S., the overall panel supply and demand remained fairly tight. While the Company's fabs continued to be operated at full capacity, AUO persistently switched its product mix to high value-added products. Not only managed to maximize its effectiveness of the capacity, but the Company also proactively improved its cost structures, making the Company to deliver a strong financial performance this quarter. As a result, the Company's operating margin and EBITDA margin surged to 8.2% and 21.2%, respectively. Its net profit also rose 81.4% quarter-over-quarter to NT$7.30 billion, a record high for the past 17 quarters. Meanwhile, its days of inventory further declined to 35 days, a new low in recent years, demonstrating the Company's achievements in both inventory control and asset management.

Looking forward to the fourth quarter, after “making profits in the high season” last quarter, AUO plans to execute the strategy – building competitive edges in the slow season – in the fourth quarter. The Company will continue to leverage its capability in technology development and proactively develop products with high cost-performance ratio as well as high-technology content, aiming to establish its long-term competitive advantages and recreate growth opportunity.

(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Basic EPS in the third quarter of 2014 and the first nine months of 2014 were calculated based on the weighted average outstanding shares of the first nine months of 2014 (9,624 million shares).
(3) Large size refers to panels that are 10 inches and above in diagonal measurement.
(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.