Yenting Chen, Taipei; Joy Wan

 

HannStar Display has announced unconsolidated results for second-quarter 2011, with total sales rising 10% sequentially to NT$1.15 billion (US$387.4 million). But it recorded an operating loss of NT$1.04 billion and a net loss of NT$ 1.57 billion, which was translated into a loss per share of NT$ 0.27.

Gross, operating, and net margin in the second quarter were 7%, -9%, and -14% respectively. Earnings before interest, taxes, depreciation and amortization (EBITDA) was 1%.

HannStar said the operating loss in the second quarter was the result of an effort to enlarge its manufacturing capacity in Nanjing, China, which cost it an extra NT$1.88 billion in operation.

Capacity utilization of HannStar was nearly full in second-quarter 2011. Small- to medium-size panels under 10-inch took up about 45% of its total revenues. Notebook panels accounted for 10% and monitor panels 45%.

HannStar is expected to enhance notebook panels' share to 15% and small- to medium-size panels to 55% in third-quarter 2011. Monitor panels' share will be lowered to around 30%.

HannStar expects small- to medium-size panels' share to reach 60% by end of 2011 and notebook panels to grow to 20%.