AUO Corporation ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today held its investor conference and announced its unaudited consolidated financial results for the first quarter of 2014⁽¹⁾.

Consolidated revenues in the first quarter of 2014 were NT$93,802 million (US$3,081 million)⁽²⁾, down 8.7% from the fourth quarter of 2013. Gross profit was NT$6,894 million (US$226 million), with gross margin of 7.3%. Operating profit was NT$658 million (US$22 million), with operating margin of 0.7%. AUO's net profit for the first quarter was NT$166 million (US$5 million). Net profit attributable to owners of Company was NT$259 million (US$9 million), with a basic EPS of NT$0.03⁽³⁾ (US$0.01 per ADR).

1Q 2014 Result Highlights
AUO reported the following unaudited consolidated results for the first quarter of 2014:

• Revenues of NT$93,802 million, down 8.7% quarter-over-quarter
• Net profit of NT$166 million
• Basic EPS of NT$0.03⁽³⁾
• Gross margin was 7.3%
• Operating margin was 0.7%
• EBITDA⁽⁴⁾ margin was 16.8%

In the first quarter of 2014, large-sized panel⁽⁵⁾ shipments totaled 29.18 million units, down by 3.3% quarter-over-quarter. Shipments of small-and-medium-sized panels in the same quarter were over 33.46 million units, representing an 18.7% decline from the fourth quarter of 2013.

Looking back to the first quarter, AUO's revenue was on the decline, affected by the traditional slow season and the prices for TV panels. However, the Company not only overcame the negatives, through the improvement of the product mix and cost structure, but also managed the inventory appropriately. As a result, AUO continued to generate a net profit of NT$166 million, and maintained its operating margin and EBITDA margin at 0.7% and 16.8%, respectively. Meanwhile, its days of inventory stayed at a healthy level of 39 days. Looking forward to the second quarter, industry supply and demand will hopefully gradually turn more favorable. The Company will continue to drive technology innovation and execute a profit-oriented product strategy, hoping to maximize the capacity value and to create solid long-term cash flows as well as a sound financial structure.

(1) All financial information was unaudited and was prepared by the Company in accordance with Taiwan IFRS.
(2) Amounts converted by an exchange rate of NTD30.45:USD1 based on Federal Reserve Bank of New York, USA as of March 31, 2014.
(3) Basic EPS in the first quarter of 2014 was calculated based on the weighted average outstanding shares of the reporting quarter (9,624 million shares).
(4) EBITDA = Operating Profit + D&A, that is, operating profit before depreciation and amortization.
(5) Large size refers to panels that are 10 inches and above in diagonal measurement.