SVI Reports Solid Results for 2015


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Thailand-based EMS firm SVI Public Co. Ltd ended the year 2015 with solid results. Also, the acquisition of Seidel Electronics Group Companies was completed on February 17, 2016, providing the company with manufacturing facilities in Austria, Slovakia and Hungary as well as minority interests in two product design and development companies located in Austria and Slovenia.

This transaction supports the company's business in European markets, in particular the German-speaking regions where SVI is currently under-penetrated. The acquisition brings SVI a solid design, manufacturing and logistics platform in Austria and in cost-competitive Eastern European countries. The synergy generated by this acquisition, including acquisition of new customers as well as new product introductions from existing customers, will generate a top-line high-growth in 2016.

Consolidated revenues for the full year 2015 were THB 8.119 billion ($227.4 million), a decrease of 2% from the previous year, mainly due to the manufacturing disruption caused by the fire last November 12, 2015, as SVI methodically re-qualified each product and customer through the product approval process with each customer.

SVI's capacity has been gradually restored and is now back to the pre-fire level. The utilization rate continues to increase and shall be fully optimized by next year. Revenue reported in 4Q was THB 2.041 billion ($57.16 million), a solid increase of 58% compared to the same quarter last year. The segments that contributed the most to SVI's revenue are IP camera, professional audio, and automotive products.

Total annual consolidated gross profit was THB 925 million ($25.9 million) or 11% of revenue. This represents a decrease of THB 104 million ($2.9 million) from the previous year, mainly related to the transfer of materials and expenses, totaling THB 66 million ($1.85 million) made last year to fire damages claim, couple with higher depreciation costs caused by new renovation of buildings and new equipment purchased after the fire.

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