AU Optronics Q1 2007 Earnings Call Transcript

Tags: AU Optronics

Question-and-Answer Session

Operator

Operator instructions. Your first question comes from Mr. Andrew Abrams with Avian Securities.

Q - Andrew Abrams - Avian Securities

I wonder if you could talk a little bit about the progress at QDI, where you were in Q1 and what you were waiting for. Was it qualification from customers? Was it still some changeover in some of the fabs? Where do you think you’ll be in Q2? Also, can you talk about Q2 depreciation, so we get some numbers there?

A - Dr. Hui Hsiung

Andrew, this is Hui Hsiung answering your first question. In terms of QDI consolidation, we expect to complete pretty much already within Q1. Q2, we start afresh. That means all the new capacity acquired through this merger, the process as well as the new product already designed in with our customers. As a result, in Q2 especially toward May and June months, all our newly acquired capacity will be pretty much loaded so that is the status of the consolidation.

A - Max Cheng

Regarding the depreciation for the Q1, that was NT$19.2 billion and I guess Q2 would be a little bit higher so that could be NT$19.5 billion.

Operator

Your next question comes from the line of Mr. Chung Ong - JL Capital.

Q - Chung Ong - JL Capital

I just wanted to check with you on your TV sites – you guided flat to upper mid single digits on the ASP. Is that correct?

A - Max Cheng

Yes.

Q - Chung Ong - JL Capital

Was that on a like for like basis?

A - Dr. David Su

This is David. To answer your question, for the blended ASP we guided slightly up and actually this is a product mix issue. On a size for size consideration, on smaller size especially for the 20 inch range, the 26 inch more or less stayed flat with some price increases. 32 certainly, the price increased, and 40 inch television will stay flat for a while.

Q - Chung Ong - JL Capital

Right. You also guided shipment increases. I just want to understand, what do you see is different versus this time last year that you are so confident on pricing and shipment increases?

A - Dr. David Su

Is this concerning order applications?

Q - Chung Ong - JL Capital

Mainly on the TV and PC side.

A - Max Cheng

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