AUO

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fom Zacks:
AU Optronics Corp. (AUO) exceeded analysts' earnings expectations for the past three quarters, most recently by 122.2% when it posted second-quarter profits of 20 cents per share. In addition, the company set record highs for single-quarter unit shipments. Consensus earnings estimates are up over the past 60 days. This Zacks #1 Rank stock has a price-to-book ratio of 1.3, compared to 4.7 for the market and 1.8 for the industry.

Full Analysis
AU Optronics Corp. engages in the design, development, manufacture, assembly and marketing of thin film transistor liquid crystal display (TFT-LCD) panels and other flat panel displays. The company's TFT-LCD panels are used in computer products, such as notebook computers and desktop monitors; consumer electronics products comprising mobile devices, digital cameras, digital camcorder, car television, car navigation systems, portable televisions, multiple function machines, printer displays, portable game consoles, and portable digital versatile disk players; and LCD televisions.
On Jul 26, AUO reported second-quarter profits of 20 cents per share, which easily surpassed the consensus estimate of nine cents by 122.2%. The company reported earnings per share of a penny in the prior-year period. This marked the third straight quarter in which AUO surprised to the upside, posting two triple-digit percentage surprises and one of the double-digit variety. Revenues jumped 74.1% to NT$106.009 billion (New Taiwan dollars, $3.2 billion in U.S. dollars) compared to NT$60.896 billion in the second quarter of last year.
As far as second-quarter panel shipments, large-sized panels jumped 22.2% to 19.48 million from the first quarter of 2007 and shipments of small- and medium-sized panels advanced 45.6%, with both setting record highs for single-quarter unit shipments.
Consensus earnings estimates for this quarter and next quarter have risen 22 cents and three cents to 56 cents and 63 cents, respectively, over the past 60 days. Profit forecasts for this year and next year are up 35 cents and 27 cents to $1.15 and $1.69, respectively, over the same period of time. Earnings per share are expected to grow 10% over the next 3-5 years.
On Jul 16, AUO announced a dividend of NT$0.39817 per common share for fiscal year 2006, which includes a stock dividend of NT$0.199086384 per share and a cash dividend of NT$0.199086384 per share.

The company recently announced the opening of its Xiamen, China manufacturing facility, the second China production base that manufactures small-, medium- and large-sized LCD modules. The new facility will enable AUO to be more responsive to its customer base in the South China region.
AUO is currently trading at a valuation of 13.1x current fiscal-year estimated earnings and at 9.0x next fiscal-year estimated earnings. The market, as represented by the S&P 500, is trading at a valuation of 15.5x current fiscal-year estimated earnings and at 14.5x next fiscal-year estimated earnings. The company has a price-to-book ratio of 1.3, compared to 4.7 for the market and 1.8 for the industry.

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http://www.digitimes.com/NewsShow/NewsSearch.asp?DocID=PD000000000000000000000000002948&query=+AU+OPTRONICS

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BUYINS.NET: (AUO) SqueezeTrigger Price is $14.871. There is $63,115,910.00 That Short Sellers Still Need To Cover
Thursday , September 06, 2007 11:36ET

Sep 06, 2007 (M2 PRESSWIRE via COMTEX) -- BUYINS.NET / www.squeezetrigger.com is monitoring AU OPTRONICS CP A (NYSE:AUO) in real time and just received an alert that is crossing above its primary SqueezeTrigger Price, the price that a short squeeze can start in any stock. There are 4221800 shares that have been shorted at the volume weighted average SqueezeTrigger Price of $14.871. To access SqueezeTrigger Prices ahead of potential short squeezes beginning, visit http://www.squeezetrigger.com .

From January 2005 to August 2007, an aggregate amount of 444289267 shares of AUO have been shorted for a total dollar value of $6,220,049,738.00. The AUO SqueezeTrigger price of $14.871 is the volume weighted average price that all shorts are short in shares of AUO. There is still approximately $63,115,910.00 of potential short covering in shares of AUO.

SqueezeTrigger.com has built a massive database that collects, analyzes and publishes a proprietary SqueezeTrigger Price for each stock that has been shorted. The data has then been integrated into an automated trading platform which can be used to connect to a live online broker and automate your trading of short squeeze events. It is extremely powerful with lightening fast execution at a very low price. Both the trading software and SqueezeTrigger data feed are available at http://www.squeezetrigger.com .

AU OPTRONICS CP A (NYSE:AUO)

AU Optronics Corp., incorporated in 1996, designs, develops, manufactures, assembles and markets flat panel displays. The Company's principal products are thin-film transistor liquid crystal display (TFT-LCD) panels. Its panels are used in computer products, such as notebook computers and desktop monitors; consumer electronics products, such as digital cameras, digital camcorder, car television, car navigation systems and portable digital versatile disc (DVD) players, and liquid crystal display (LCD) televisions. It offers small to medium-size panels, as well as large-size panels. AU Optronics Corp. sells its panels primarily to original equipment manufacturing service providers. Effective December 1, 2005, the Company grouped its business into two marketing channels: Information Technology Displays and Consumer Electronics Displays. The Information Technology Display Business Group covers applications, such as desktop, notebook and general displays. The Consumer Electronics Display Business Group covers applications, such as LCD television, audio video displays and mobile device displays.

The Company manufactures TFT-LCD at production facilities known as fabs. It operates three fifth-generation fabs. It also operates a sixth-generation fab in Taiwan. Its sixth-generation fab is designed to process substrates with dimensions of up to 1,500 by 1,850 millimeters. Its fifth-generation fabs are designed to process substrates with dimensions of up to 1,100 by 1,250 millimeters and 1,100 by 1,300 millimeters, respectively, and its fourth-generation fab is designed to process substrates with dimensions of up to 680 by 880 millimeters. The Company's 7.5-generation fab is designed to process substrates with dimensions of up to 1,950 by 2,250 millimeters. The Company's original equipment manufacturing service provider customers include BenQ, TPV Electronics (Fujian) Company Limited and Proview Optronics (Shenzhen) Co. Ltd. The Company also sells its products to some brand companies on a direct shipment basis.

Computer Products

AU Optronics Corp. manufactures a range of TFT-LCD panels for computer products, which typically utilize display panels ranging from 8.4 inches to larger than 20 inches, primarily for use in notebook computers and desktop monitors. During the year ended December 31, 2005, sales of panels for notebook computers accounted for 15.3% of the Company's net sales. During 2005, unit sales of AU Optronics Corp.'s panels for notebook computers were approximately 7.4 million, of which a substantial majority was accounted for by 14.1 inch to 15.4-inch panels. It manufactures desktop monitor panels. During 2005, sales of panels for desktop monitors accounted for 50% of the Company's net sales. In 2005, unit sales of AU Optronics Corp.'s panels for desktop monitors were approximately 18.7 million, of which a significant portion was accounted for by 17 and 19-inch panels.

Consumer Electronics Products

The Company's panels for consumer electronics products, including digital cameras, camcorders, mobile phones, car television, car navigation systems, portable DVD players, multiple function machines, printer displays, portable game consoles and portable televisions, consist of display panels ranging from 1.5 to 10.2 inches or above. Sales of panels for consumer electronics products accounted for 13.2% of the Company's net sales in 2005. During 2005, unit sales of AU Optronics Corp.'s panels for consumer electronics products were 54,598.1 thousand panels.

Liquid Crystal Display Television
The Company's panels for LCD television consist of display panels with a panel size of 14 inches or above. Its portfolio of LCD television products consists of 14 to 46-inch panels. Sales of LCD television panels accounted for 21.2% of AU Optronics Corp.'s total sales in 2005. In 2005, approximately half of LCD television panels produced by the Company were 26-inches and above. During 2005, unit sales of AU Optronics Corp.'s LCD television panels were 4,033.6 thousand.

AU Optronics Corp. competes with LG. Philips LCD .....

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The new direction for AUO: Q&A with AUO chairman, new CEO and president
The management changes of AU Optronics (AUO) came into effect on September 1 with HB Chen, former president of AUO, taking over as vice chairman/CEO and LJ (Lai-Juh) Chen, former senior vice president and general manager of global manufacturing succeeding Chen's position while also serving as COO for the panel maker. Digitimes recently had a chance to talk with KY Lee, chairman of AUO and two of the newly appointed executives to talk about their new outlook for AUO and the business direction of the company.

KY Lee, chairman of AUO

Q: What will be the role of Qisda (formerly BenQ) after the company's official spin-off?

A: Qisda is still adjusting its role in the BenQ group. We could spend several years on the company's integration. LCD panel, OEM/ODM and brand businesses are all important for the group.

Q: Have any positive effects for the ODM/OEM business surfaced after the spin-off?

A: In the past, some of our AUO customers were asking for system production services from us. However, as BenQ was both focusing on brand and OEM/ODM businesses at that time, this was not easy for us to implement. With the forming of Qisda we believe that this situation could be solved and we will be able to compete orders for other players more easily.

Some non-US-based customers had doubts about our business model (owning brand and ODM/OEM business at the same time). With the separation of our branding business, talks with those customers have become more smooth.

Qisda not only gains panel support from AUO, but also has its own plants in China, the Czech Republic and Mexico.

Q: What about the brand business?

A: For the brand business, BenQ is showing good performance in markets in the Asia Pacific, China and Europe. We will develop the business step by step in other regions in the future.

HB Chen, vice chairman and CEO of AUO

Q: How did you feel after LJ Chen succeeded your position?

A: I have felt very relaxed during this first month. However, there's still much work for me to do for AUO, which is still in its initial development.

I am thinking over the new chances for AUO.

Q: What new chances are there for the company?

A: I am not able to detail the next step for AUO at this moment. But, whatever we are eying to do, breakthroughs in technology will become extremely important. Take our affiliated CCFL (cold cathode fluorescent lamp) company Wellypower Optronics for example, Wellypower is facing threats from LED makers. To stay competitive, the company decided to develop hot-cathode fluorescent lamps (HCFLs). I believe AUO can also learn from this business strategy.

In the future, AUO will still focus on the LCD component market. The company will not develop brand business or system products.

Although industry sources indicated that the company plans to enter the solar cell market, after a half-year evaluation, AUO has decided not to step into the market.

Q: What are your comments on competition in the future LCD panel market?

A: In the past, the industry always said only first-tier makers could survive. But now it seems that second-tier makers have found ways, too.

Although the market estimates that there will be oversupply in the LCD panel market in 2009. I, personally, still hold an optimistic perspective toward the market.

LJ Chen, new president of AUO

Q: After serving as president of AUO, what's your new focus for the future the company?

A: As most of the management team of AUO has remained unchanged, the company will work as smoothly as before.

In addition to strengthen AUO's R&D business, deep collaboration between company departments will be the key for us, with all departments able to communicate through an open platform.

Q: Why is the platform concept so important?

A: AUO has developed itself very fast. We set up a new plant in around 1-1.5 years. Standardization, therefore, has become crucial for internal operation. Besides vertical integration, we have also formed cross-department teams to push departments to compete.

In short, further rising revenues and more new products are the two major directions we are aiming at now.

Q: Does AUO plan to set up an LCD module (LCM) plant in Europe?

A: The tariff for LCMs shipped to Europe has not been finalized yet. The new policy is expected to go effective in 2009.

European customers account for 30-40% of the company's TV panel revenues. Therefore, to meet customer demand, setting up a hub site or LCMs could be a choice for the company. AUO is still evaluating the project and we will reach a final decision in one to two months.

Q: What's your opinion on the LCD demand/supply forecast for 2008?

A: With the Beijing Olympics and UEFA Euro tournament both kicking off in 2008, the LCD display market will continue to flourish next year.

Q: Will demand for small- to medium-size LCD panels continue strong?

A: While there's only limited new capacity coming online from panel makers next year, demand/supply for small- to medium-size panels will stay healthy during the period.

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Taiwan's AU Optronics says no major impact from US subprime crisis on LCD market
Monday , September 17, 2007 05:50ET

TAIPEI, Sep 17, 2007 (XFN-ASIA via COMTEX) -- AU Optronics Corp (2409.TW) said the supprime mortgage problems in the US have had no major negative impact on demand for thin-film-transistor liquid crystal display (LCD) panels so far. It said it is maintaining its previous forecast for some tightness in supply ahead of the holiday shopping season later in the year.

"We are keeping up our earlier assessment that the LCD industry is set to experience moderately tight supply towards November ahead of the holiday shopping season," a company official said.

The official was asked to comment on a report citing AU Chairman KY Lee as making remarks to that effect. In a United Evening News report, Lee said he expects the TFT-LCD market to remain healthy and dynamic towards November, with uncertainty likely to set in during December.

According to market research and consulting firm DisplaySearch, AU topped the shipments worldwide of large-area TFT-LCD panels in August for the first time ever. The Taiwan company commanded a 20.6 pct market share by shipping 7.6 mln TFT-LCD panels measuring at least 10 inches diagonally last month, DisplaySearch said. Trailing behind were South Korea's Samsung Electronics Co, which delivered 7.4 mln panels, and LG Philips LCD Co Ltd, with 7.3 mln.

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AUO: Short Interest UP 33.1% to 5.6M in Sep 2007
Friday , September 21, 2007 10:30ET

According to new short interest data from NYSE, short interest for AU Optronics Corp (NYSE: AUO) INCREASED 33.1% to 5,619,606 shares for the month ended mid-September, 2007.

SYMBOL     AUGUST       SEPTEMBER          CHANGE       %CHANGE       DAYS/COVER
--------   -------------   -------------   -------------  ------------  ----------
AUO            4,221,801       5,619,606      +1,397,805       +33.11%           4

Based on AUO's 20-day average daily share volume of 1,827,420, it would require approximately 4 day(s) of buying to cover this short interest.