The following is a summary of the AUO Corporation (AUOTY) Q1 2024 Earnings Call Transcript:

Financial Performance:

• AUO reported Q1 net sales of TWD 59.5 billion, down by 6% Q-o-Q, primarily due to slower demand in the notebook panels segment and timing of revenue recognition in the Energy business.

• They recorded a gross profit of TWD 1.96 billion and maintained operating losses at TWD 4.9 billion.

• Net loss attributable to the company was TWD 3.5 billion, and their EBITDA margin stood at 5.8%.

• They finished Q1 with TWD 87.7 billion in cash and cash equivalents, and a combined long and short-term debt of TWD 118 billion.

Business Progress:

• After the acquisition of BHTC, AUO expects a double-digit increase in vertical business projections, with vertical business contributions exceeding 20% of their total revenue.

• The acquisition is anticipated to expand AUO's footprint in the smart mobility ecosystem, with automotive business revenues predicted to account for over 25% of the company's revenue.

• AUO is progressing from a pure panel provider to an automotive display solution provider.

• The company achieved growth in the TV sector due to brands replenishing inventory ahead of major sports events, and steady demand for gaming applications drove growth in the IT market.

• AUO expects the IT market to slowly gain momentum, with stronger demand predicted in the consumer market ahead of the commercial one.

• The aim for AUO is to achieve double-digit growth in the Automotive business, aided by their BHTC acquisition, with a focus on developing power-efficient LTPS panels for notebook products.

• AUO aims to expand its presence in North America through AUO's manufacturing base and BHTC's fab located in Mexico.

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