Genius Electronic Caps Loss With Hefty Earnings

Taipei, April 7, 2011 (CENS)--Optical-lens maker Genius Electronic Optical Co. recently announced earning around NT$464 million (US$15 million at US$1:NT$30), or NT$6.01 per share, in after-tax net income last year, capping three consecutive years of loss posting at NT$6.61 per share, on average.

The company began swinging to profit in the third quarter last year with a marginal earnings of NT$0.29 per share. In the following quarter, the company netted a lucrative NT$5.7 per share mostly thanks to contracts from pure manufacturers designated to make Apple iPhones.

In spite of the fat net income, the company's board of directors agreed to pay shareholders dividend of only NT$1.5 per share on grounds that the company will set aside most of its earnings for expansion investments. The board has approved an expenditure of NT$2.3 billion (US$76.6 million) on new production equipment.

Besides making optical lens for digital cameras, the company has ventured into production of the lens for LED lamps. Both products require the company to make considerable investment in R&D.

During its heydays from 2003 to 2005, the company reported annual earnings that were more than its capital. However, unsmooth migration to new products and Motorola, one of its major customers, losing market share eroded the company's earnings since 2006.

Industry executives estimated the company's earnings to double the amount of the company's capital this year.