Asia Pacific Wire & Cable Corpo (NASDAQ:APWC)

TAIPEI, Taiwan, Dec. 23, 2019 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the nine months ended September 30, 2019. Unless otherwise indicated, all data are reported in US Dollars at the exchange rate prevailing on the date of the event or result reported.

First Nine Months 2019 Financial Results (Ended September 30, 2019)
 
First 9 Months 2019 First 9 Months 2018 CHANGE
Revenues $249.7 million $318.5 million (21.6)%
Operating (Loss) Profit $(3.1) million $8.4 million (136.5)%
Net (Loss) Income $(2.0) million $2.6 million (176.6)%
EPS(1) $(0.14) $0.19 (173.7)%
 
(1)The calculation of the earnings per share is based on 13,819,669 and 13,819,669 basic and diluted weighted average common shares issued and outstanding for the nine months ended September 30, 2019 and 2018, respectively.

First Nine Months 2019 Results 

Net revenues for the nine months ended September 30, 2019, were $249.7 million, a decrease of 21.6% from $318.5 million in the prior year.  The decrease was primarily attributable to revenue decreases in the Company’s Thailand, North Asia and Rest of World (ROW) regions. Net revenue in the Company’s Thailand region decreased by 17.3%, primarily due to the postponement of the delivery of products per the request of a major client. Revenues in the Company's North Asia region decreased by 27.9%, primarily due to the negative impact of the trade war between the United States and China. Revenues in the Company's Rest of World ("ROW") region decreased by 23.4%, primarily due to intense competition and a market slowdown. The Company's North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside Thailand; the ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand region and North Asia region.

Operating profit for the nine months ended September 30, 2019 decreased by 136.5% to $(3.1) million from $8.4 million in the same period last year.  Operating margin decreased by 146.6%, declining from 2.6% in 2018 to (1.2)% in 2019.  In the Thailand region, operating margin declined from 5.6% to (0.4)%, which was attributable primarily to the decrease in sales of high margin products and an increase in the provision for long-term employee benefits. In the North Asia region, operating margin decreased from 2.9% to 0.9%, primarily due to a decrease in sales volume, which eroded the profit margin, and an increase in allowances for trade receivables. The ROW region’s operating loss margin increase in 2019 to (2.8)% from (1.1)% in the same period in 2018 was primarily due to a decrease in selling price, margin erosion because of competition, as well as higher unit costs.

Selling, general and administrative expenses for the first nine months of 2019 were $19.0 million, compared to $19.3 million reported in the first nine months of 2018.  Net loss attributable to APWC shareholders was $(2.0) million for the first nine months of 2019, compared to net income of $2.6 million in the same period in 2018.  The decrease in net income was primarily due to a decrease in operating profit. The weighted average number of shares issued and outstanding was 13.82 million for the nine months ended September 30, 2019 and 2018.

Financial Condition

APWC reported $50.7 million in cash and cash equivalents as of September 30, 2019, compared to $60.8 million as of December 31, 2018.  Most of APWC‘s cash holdings are at the operating subsidiary level and are subject to multiple restrictions on upstream distribution, due to, among other things, restrictive loan covenants, statutory reserve requirements, working capital requirements of subsidiaries and other limitations on distributions. Working capital needs at the operating subsidiary level are significant.

Current assets totaled $247.9 million as of September 30, 2019, compared to $254.1 million as of December 31, 2018.  Working capital was $181.3 million as of September 30, 2019.  Short term bank loans were $22.3 million at September 30, 2019, a decrease from $24.8 million at the end of 2018.  The Company had no long-term debt outstanding at September 30, 2019. Shareholder's equity attributable to APWC was $149.2 million as of September 30, 2019, compared to $150.0 million as of December 31, 2018.

APWC reported $8.9 million in net cash outflows from operations during the nine months ended September 30, 2019, compared to cash generated from operations of $19.1 million in the corresponding period in 2018. The increase in cash outflows from operations in 2019 was primarily attributable to a decrease in sales, and an increase in inventory. The Company reported $3.9 million in cash inflows from investing activities during the nine months ended September 30, 2019, compared to $2.9 million in cash outflows in the same period of 2018. The cash provided from investing activities in the first nine months of 2019 was attributable primarily to the receipt of proceeds from the maturities of short-term bank deposits.  APWC reported $6.5 million in cash outflows from financing activities during the first nine months of 2019, compared to $12.4 million in cash outflows from financing activities in the same period of 2018. The decrease in cash outflows in the first nine months of 2019 was primarily attributable to a decrease in the repayment of bank loans.

The Company’s wire and cable business has been negatively impacted by slow global growth. For example, in Singapore, one of the regions in which APWC operates, the Ministry of Trade and Industry (“MTI”) expects the performance of the manufacturing sector and trade-related services such as wholesale trade to remain subdued in view of the ongoing downsizing in the global electronics cycle1. In the third quarter of 2019, Singapore’s manufacturing sector shrank by 1.7 percent year-on-year, which was weighed down by the electronics cluster, which contracted on the back of a decline in the semiconductors segment2. Overall, the Singapore economy is only expected to achieve GDP growth of 0.5 to 1.0% in 20193.   

Furthermore, the Company’s business was adversely affected by the trade war between the United States and China in the past year.  Even though the United States and China have announced a preliminary trade agreement, or “Phase One” trade deal, it is still uncertain when the trade war will end and how much further negative impact it will have on the Company’s business. The trade war has lowered the demand for wires and cables; surplus wires and cables are sold to other markets, including the markets where we operate. Growth momentum in China remains weak, and industrial production was subdued in October, as the trade war between the United States and China eroded manufacturing activities4.  Unfortunately for APWC, this trend is expected to continue in the coming months as evidenced by a new drop in China exports in November of 20195.

APWC has also ceased production at its manufacturing facility in Shanghai, China and laid off these workers in November of 2019. However, the Company continues to service the product sales and delivery in the mid-Eastern region of China by utilizing its Shenzhen facility. This decision was predicated upon domestic demand shifts and changes in environmental and labor regulations imposed by the Chinese government in recent years.

Due to the reduction in the current demand for the company’s core wires and cables, the Company has seen significant increases in inventory levels and decreases in cash positions.  The Company is also in the initial stage of adjusting the scope of its product lines and services tailored to domestic and regional demands by avoiding severe price competition. This adjustment is likely to continue on a multi-year timeline and will require considerable capital expenditures. As more definitive information on the scope and application of the new products and services becomes available, we will be pleased to inform our investors.

TAIPEI, Taiwan, Aug. 28, 2019 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (NASDAQ: APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the six months ended June 30, 2019. Unless otherwise indicated, all data are reported in US Dollars at the exchange rate prevailing on the date of the event or result reported.

First Six Months 2019 Results 

Net revenues for the six months ended June 30, 2019, were $160.6 million, a decrease of 26.1% from $217.3 million in the prior year. The decrease was primarily attributable to revenue decreases in the Company’s Thailand, North Asia and Rest of World (ROW) regions. Net revenue in the Company’s Thailand region decreased by 17.9%, primarily due to the postponement of the delivery of products per the request of major clients. Revenues in the Company's North Asia region decreased by 30.7%, primarily due to negative impact of the trade war between the United States and China. Revenues in the Company's Rest of World ("ROW") region decreased by 35.0%, primarily due to intense competition. The Company's North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside Thailand; the ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand region and North Asia region.

Operating profit for the six months ended June 30, 2019 decreased by 151.3% to $(3.5) million from $6.8 million in the same period last year. Operating margin decreased by 169.2%, declining from 3.1% in 2018 to (2.2)% in 2019. In the Thailand region, operating margin declined from 6.4% to (2.1)%, which was attributable primarily to the postponement of delivery of high margin products . In the North Asia region, operating margin decreased from 3.2% to 2.0%, primarily due to a decrease in sales as a result of the trade war. The ROW region’s operating loss margin increase in 2019 to (3.6)% from (0.4)% in the same period in 2018 was primarily due to the erosion of the margin because of the competition.

Selling, general and administrative expenses for the first six months of 2019 were $13.1 million, compared to $12.8 million reported in the first six months of 2018. Net loss attributable to APWC shareholders was $(1.7) million for the first six months of 2019, compared to net income of $1.8 million in the same period in 2018. The decrease in net income was primarily due to a decrease in revenue. The weighted average number of shares issued and outstanding was 13.82 million for the six months ended June 30, 2019 and 2018.

Financial Condition

APWC reported $49.1 million in cash and cash equivalents as of June 30, 2019, compared to $60.8 million as of December 31, 2018.

Current assets totaled $249.5 million as of June 30, 2019, compared to $254.1 million as of December 31, 2018. Working capital was $181.9 million as of June 30, 2019. Short term bank loans were $21.6 million at June 30, 2019, a decrease from $24.8 million at the end of 2018. The Company had no long-term debt outstanding at June 30, 2019. Shareholder's equity attributable to APWC was $152.0 million as of June 30, 2019, compared to $150.0 million as of December 31, 2018.

APWC reported $4.2 million in cash outflows from operations during the six months ended June 30, 2019, compared to cash generated from operations of $18.9 million in the corresponding period in 2018. The decrease in cash outflows from operations in 2019 was primarily attributable to increase in inventory. The Company reported $2.3 million in cash outflows from investing activities during the six months ended June 30, 2019, compared to $2.3 million in cash outflows in the same period of 2018. The cash used more for investing activities in the first six months of 2019 was attributable primarily to the purchases of property, plant and equipment in the Thailand region. APWC reported $7.1 million in cash outflows from financing activities during the first six months of 2019, compared to $8.0 million in cash outflows from financing activities in the same period of 2018. The decrease in cash outflows in the first six months of 2019 was primarily attributable to a decrease in the repayment of bank loans.

TAIPEI, Taiwan, Aug. 30, 2018 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (APWC) (“APWC” or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced that its Board of Directors has declared a cash dividend of $0.08 per share payable on all issued and outstanding common shares. The dividend will be payable on November 30, 2018, to all common shareholders of record as of the close of business on September 14, 2018.

This cash dividend of over $1.1 million is in line with the Company’s stated dividend policy of paying approximately 25% of net income attributable to APWC shareholders. 2017 net income attributable to APWC shareholders was approximately $8.7 million, but included $4.4 million in one-time gains from the sale of the land use rights and buildings of the Company’s Ningbo, China facility, which would have resulted in net income from ordinary operations of $4.3 million.

The Company’s dividend is slightly lower than last year’s dividend of $.10 per share, primarily due to the fact that APWC needs to reserve certain funds for entry into new possible business lines. The Company has previously stated that it intends to diversify its business beyond wire and cable products.  Pursuant to this, APWC’s Board of Directors has approved the establishment of a new entity to facilitate the establishment of the Company’s renewable energy business in Taiwan.

Because the Taiwan government is promoting renewable energy and offers attractive feed-in tariffs to purchase green energy, the Company believes that it should take this opportunity to enter this business.  Furthermore, APWC is well positioned to enter the renewable energy business sector by aligning international corporate players with Taiwanese authorities, key strategic developers and material suppliers in the industry. APWC’s management team expects to develop and launch its renewable energy business initiatives in the fourth quarter of 2018.

LONDON, March 01, 2018 (GLOBE NEWSWIRE) -- LONSIN Capital Limited, together with its affiliates, representing over 5% of the shares outstanding of Asia Pacific Wire and Cable ("APWC", ticker “APWC US") on February 23, 2018 wrote to the Board of Directors of the Company and to the Board of Directors of the main Shareholder Pacific Electric Wire and Cable Co. the intention of interest to acquire a majority of APWC US at US$4.00 per share.

The proposal would represent a 62% premium to February 22, 2018 ’s close of $2.475 and a 47% premium to the five-year average closing price on NASDAQ.

LONSIN has expressed concern to the management, both orally and in writing, concerning the failure of the Company to take sufficient action to enhance shareholder value and to include an additional independent director on the Company’s board of directors over time. On May 18, 2016 LONSIN wrote a requisitioned, open letter to the Board of Directors of APWC asking the Board to consider a range of measures that could help deliver enhanced shareholder value without much cost to the Company. The Board responded by stating that they “took very seriously concerns about shareholder value.”

Almost two years later, it is clear that this statement by the APWC Board is questionable. The share price is still at a massive discount to book value, to cash per share and to the market value of the majority stake in listed subsidiary, Charoong Thai Wire (“CTW”) in Thailand.

In light of the underwhelming track record of the incumbent Board and Management of APWC over the short, medium and longer term, LONSIN believes that the acquisition of the majority stake would bring “fresh impetus” to APWC’s assets and “swiftly deliver enhanced value for all shareholders.”

TAIPEI, Taiwan, Dec. 18, 2017 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the nine months ended September 30, 2017. Unless otherwise indicated, all data are reported in US dollars at the exchange rate prevailing on the date of the event or result reported.

Gross revenues for the nine months ended September 30, 2017, were $284.3 million, an increase of 3.5% from $274.6 million in the prior year.  The increase was primarily attributable to a 16.2% revenue increase in the Thailand region due to higher demand in the public sectors and increased export sales. Revenues in the Company’s North Asia region increased by 7.8%, primarily due to the increase in the price of copper.  Revenues in the Company’s Rest of World region dropped by 12.3% due to increased market competition. The Company’s North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside Thailand; the ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand region and North Asia region.

The gross profit for the nine months ended September 30, 2017, decreased by 0.2% to $22.0 million from $22.1 million in the same period last year. Gross margin decreased by 3.6% from 8.0% in 2016 to 7.7% this year.  In the Thailand region, gross margin grew following an increase in our product sales to high margin government projects.  In the North Asia region, gross margin dropped due to an increase in the copper price and some of our equipment and machinery were shut down temporarily to meet the environmental regulations, which caused an increase in costs.  The ROW’s gross margin decreased slightly.

Selling, general and administrative expenses for the nine months ended September 30, 2017 were $18.3 million, compared to $18.3 million reported in 2016.  Operating income was $10.1 million, compared to operating income of $8.1 million in 2016.

Net income attributable to APWC shareholders was $5.6 million for the nine months ended September 30, 2017, compared to net income of $5.1 million for the first nine months of 2016.  Net income per share was $0.40 in the first nine months of 2017, while net income per share was $0.37 for the comparable period in 2016.  The weighted average number of shares issued and outstanding was 13.8 million for each of the nine months ended September 30, 2017 and 2016.

Financial Condition

APWC reported $51.5 million in cash and cash equivalents as of September 30, 2017, compared to cash and cash equivalents of $48.2 million as of December 31, 2016.

Current assets totaled $284.6 million as of September 30, 2017, compared to $244.6 million as of December 31, 2016.  Working capital was $172.8 million as of September 30, 2017.  Short term bank loans were $46.5 million at September 30, 2017, an increase from $28.2 million at the end of 2016.  The Company had no long-term debt outstanding at September 30, 2017.  Shareholder's equity attributable to APWC was $148.6 million as of September 30, 2017, compared to $136.0 million as of December 31, 2016.

APWC reported $19.0 million in cash outflows from operations during the nine months ended September 30, 2017, compared to cash outflows from operations of $7.2 million in the corresponding period in 2016. Cash used in operations was mainly caused by an increase of inventory and trade receivable. The Company generated $4.8 million from investing activities during the nine months ended September 30, 2017, compared to $0.5 million cash generated in the same period of 2016. The cash generated was attributable, in part, to the disposal of land use rights and buildings associated with its facilities at Ninbgo, China.  APWC generated $14.3 million from financing activities during the nine months ended September 30, 2017, compared to $3.1 million in outflows in the same period of 2016. The cash generated was mainly attributable to the increase in bank loans.

Recent Developments

As previously announced, on November 30, 2017, the Company paid a dividend of $0.10 per common share to all shareholders of record as of the close of business on October 31, 2017. This was the first dividend paid by APWC, and the Company is pleased to have successfully implemented its dividend payment program as part of its continuous efforts to provide increased value to shareholders.

TAIPEI, Taiwan, May 05, 2017 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the twelve months ended December 31, 2016. Unless otherwise indicated, all data are reported in US dollars at the exchange rate prevailing on the date of the event or result reported.

Full Year 2016 Results

Gross revenues for the twelve months ended December 31, 2016, were $384.6 million, down from $389.6 million in the prior year.  The decrease was primarily attributable to a 7.5% revenue decrease in the Thailand region due to increased competition and the depreciation of local currency against the US dollar.  Revenues in the Company’s ROW region increased by 2.7%, primarily due to increased demand for SDI and distributed products.  Revenues in the Company’s North Asia region increased by 4.1% due to decreased competition after several competitors shut down due to environmental issues.  The Company’s North Asia region includes China and Hong Kong; the Thailand region contains the operations and sales inside Thailand; the ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand region and North Asia region.

The gross profit for the twelve months ended December 31, 2016, increased by 34.6% to $31.6 million from $23.5 million in the same period last year.  Gross margin was up by 36.3%, growing from 6.0% in 2015 to 8.2% this year.  In the Thailand region, gross margin grew following an increase in our product sales to high margin government projects.  In the North Asia region, the gross margin increased because the copper price was relatively stable in comparison with the copper price during the prior year. The ROW region’s gross margin remained unchanged in 2016.

Selling, general and administrative expenses for 2016 were $26.3 million, compared to $27.0 million reported in 2015.  Operating income was $7.3 million, compared to an operating loss of ($2.7) million in 2015.

Net income attributable to APWC shareholders was $2.8 million for the full year of 2016, compared to a net loss of ($7.7) million in 2015.  Net income per share was $0.21 in 2016, while a net loss of ($0.56) per share was reported for 2015.  The weighted average number of shares issued and outstanding was 13.8 million in each of 2016 and 2015.

TAIPEI, Taiwan, Nov. 11, 2016 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced that the Board of Directors has approved the initiation of a dividend policy as part of the Company's ongoing commitment to increasing shareholder value and return on investment.

Pursuant to its newly-adopted dividend policy, APWC intends to pay cash dividends of at least 25% of its net post-tax audited consolidated profits attributable to shareholders.  However, as APWC is a holding company, its income, and therefore its ability to pay dividends, is dependent upon the dividends it receives from its subsidiaries, which are subject to a number of factors including operating results, business prospects, capital requirements, expansion plans, debt covenants, considerations for non-recurring items and other factors that are deemed to be relevant from time to time by the respective Boards of our subsidiaries.

The dividend policy will be reviewed on an ongoing basis and updated at the discretion of the Board of Directors as business circumstances and available capital and capital requirements may change.  It is the intention of the Board to share with shareholders the Company’s profits, while reserving adequate funds for future expansion.

The Board of the Company views this adoption of a dividend policy as a major step in the Company's efforts to enhance the return on investment for our shareholders.

TAIPEI, Taiwan, Dec. 17, 2015 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the nine months ended September 30, 2015. Unless otherwise indicated, all data are reported in US dollars at the exchange rate prevailing on the date of the event or result reported.

Revenues for the nine months ended September 30, 2015 were $291.1 million, down from $338.9 million in the same period of the prior year. The decrease was primarily attributable to a 23.4% decrease in sales in the Company�s North Asia region due to a challenging economic climate in China and a 21.9% decrease in the Rest of the World (�ROW�) region due to market competition from China and a depreciation in local currencies. In Thailand, revenue increased in local currency by 5.7%, but increased only 1% in USD due to currency depreciation. APWC�s ROW region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand and North Asia regions. The North Asia region includes China and Hong Kong, and the Thailand region contains the operations and sales inside Thailand.

The gross profit for the nine months ended September 30, 2015 declined by 42.2% to $16.7 million from $28.9 million in the same period last year. Gross margin was down by 32.7%, falling from 8.5% in the first nine months of 2014 to 5.7% in the comparable period this year. In the Thailand region, gross margin fell following a decline in higher margin Thai government projects and local currency depreciation. In the North Asia region, the gross margin decreased due to a drop in copper prices and an increase in labor costs. The ROW region was also affected by the drop in copper prices but the gross margin remained the same, with an increased margin from trading being offset by a decreased margin in sales of manufactured products.

Selling, general and administrative expenses of $18.9 million were incurred for the first nine months of 2015, compared to $20.6 million reported in the year ago period. Operating loss was $2.2 million, compared to an operating income of $6.3 million in the comparable nine month period last year.

Net loss attributable to APWC shareholders was ($6.1) million for the first nine months of 2015, compared to net income of $0.3 million in 2014. Net loss per share was ($0.44) for the first nine months of 2015, while net income of $0.02 per share was reported for the comparable period a year ago. The weighted average number of shares outstanding was 13.8 million for the first nine months of each of 2015 and 2014.

APWC reported $39.5 million in cash and cash equivalents as of September 30, 2015, compared to cash and cash equivalents of $68.9 million on December 31, 2014.

Current assets totaled $255.7 million on September 30, 2015 compared to $318.0 million as of December 31, 2014. Working capital was $145.6 million as of September 30, 2015, compared to $169.5 as of December 31, 2014. Short term bank loans were reported at $44.1 million on the same date, down from $53.9 million at the end of the 2014. Shareholder's equity attributable to APWC was $135.7 million as of September 30, 2015, compared to $153.0 million on December 31, 2014.

Over the nine months ended September 30, 2015, the Company used $17.5 million in cash from operating activities, compared to a $1.6 million in the comparable nine months of 2014. Capital expenditures totaled $5.4 million for the first nine months of 2015, compared to $4.1 million in the comparable period last year.

TAIPEI, Taiwan, Dec. 31, 2014 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced the Company's financial results for the nine months ended September 30, 2014. Unless otherwise indicated all dates are reported in US dollars at the exchange rate prevailing on the date of the event or result reported.Revenues for the nine months ended September 30, 2014 were $338.7 million, up from $336.4 million in the prior year, primarily attributable to a 7.6% rise in sales in the Company's Rest of the World Region (ROW Region) an increased sales volumes in SDI, and a 1.7% increase in sales in the North Asia Region from manufactured products. APWC's ROW Region includes Singapore, Australia and the other markets where APWC has operations or sales outside of the Thailand Region and North Asia Region. The North Asia Region includes China and Hong Kong, and the Thailand Region contains the operations and sales inside Thailand.

Gross profit for the nine months ended September 30, 2014 declined by 19.1% to $28.9 million from $35.3 million in the same period last year. Gross margin was down by 18.5%, falling from 10.5% in the first nine months of 2013 to 8.5% this year. In the Thailand Region, gross margin fell following a decline in higher margin Thai government projects due to the political unrest since Q4 2013. The ROW Region also experienced declining sales prices and an increase in manufacturing overhead.

Selling, general and administrative expenses of $20.6 million were reported for the first nine months of 2014, compared to $22.6 million booked a year ago. Operating income was $6.3 million, compared to $12.4 million in the comparable nine month period last year. The Company booked a one-time $2.1 million non-cash impairment charge for trade receivables in 2014. Operating income for the nine months ended September 30, 2014 would have been $8.4 million excluding the non-cash impairment charge.

Net income attributable to APWC shareholders was $0.3 million for the nine months of 2014, compared to $3.9 million in 2013. Net income per share was $0.02 for the year to date, while net income of $0.28 per share was reported for the comparable period a year ago. The weighted average number of shares outstanding was 13.8 million for the first nine months of each of 2014 and 2013.

APWC reported $81.3 million in cash and cash equivalents as of September 30, 2014, compared to cash and cash equivalents of $62.5 million on December 31, 2013. Most of the cash is held by operating subsidiaries and, in certain instances, subject to limitations on distribution to APWC.

Current assets totaled $338.4 million on September 30, 2014 compared to $302.2 million as of December 31, 2013. Working capital was $175.8 million as of September 30, 2014. Short term bank loans were reported at $67.1 million on the same date, up from $41.8 million at the end of the 2013. The Company had no long-term debt outstanding on September 30, 2014. Shareholder's equity attributable to APWC was $157.6 million as of September 30, 2014, compared to $157.2 million on December 31, 2013.

Over the nine months ended September 30, 2014, the Company used $1.6 million in cash from operating activities, compared to a $18.7 million cash inflow in the comparable nine months of 2013. Capital expenditures totaled $4.1 million in the third quarter of 2014, compared to $7.2 million in the comparable period last year.

Business Update

The Company is pleased to announce that the ROW region was awarded a public sector contract in Q3 2014 of approximately US$58 million. APWC expects to initiate delivery in January 2015 and complete the contract by Q3 2016.

The business in the Thailand region has been affected by the political unrest since Q4 2013. The coup in May 2014 has arguably improved the political stability in the country, which might accelerate economic recovery in 2015. However, Thailand's political future is still unknown and will continue to affect the Company's business in the region.

The Company's Ningbo subsidiary has been awarded the ISO/TS16949 certification, which regulates the design, development and production of automotive-related products. The subsidiary is also in the midst of applying for the China Compulsory Certification, which is required for many of the Company's products to meet the requirement of its domestic customers in China.

First Quarter 2014 Financial Results

• Revenues for the three months ended March 31, 2014 were $109.8 million, up from $101.0 million in the prior period.
• Net income per share was a loss of $0.07 for the period, compared to income of $0.09 in the first three months of 2013.

Business Update and Outlook

The political unrest in Thailand caused a delay in delivery for projects with the Thailand government in the first quarter of 2014, thus revenue recognized from government projects decreased, compared to the first quarter of 2013. However, overall revenue in the Thailand region still increased comparing to the same period last year. The Company managed to maintain a stable revenue growth by introducing more distributed products.

The Company provided a $2.1 million allowance for an overdue account in the first quarter of 2014.

The revenue growth in the ROW Region was primarily due to the increase in power cable supply, delivery, and installation (SDI) projects in the first quarter of 2014. Increased competition and manufacturing overhead eroded the margin for manufactured products in this region. Nevertheless, improved margin in SDI projects made up the loss.

Share Repurchase Program

The Company announced today that its Board of Directors recently approved the implementation of a share repurchase program, pursuant to which the Company is authorized to repurchase up to $1 million worth of its Common Shares. The Company plans to retain a financial adviser to manage the share repurchase program in accordance with Rule 10b-18 under the Securities Exchange Act. Once implemented, the common shares may be repurchased on the open market, in negotiated transactions, in block trades or otherwise. The timing and the extent of any purchases will depend upon market conditions, the trading price of the common shares and other factors, subject to the restrictions relating to volume, price and timing under applicable laws and regulations. The Company plans to announce the date of the commencement of the share repurchase program in the near future.

The share repurchase program will be funded from existing cash on hand and cash generated from operations. As of March 31, 2014, the Company had cash and cash equivalents of approximately $80.4 million. The Company currently has approximately 13.8 million shares outstanding. The Company is not obligated to repurchase any particular amount of shares during any period and may choose to suspend or discontinue the share repurchase program at any time.

Third Quarter 2013 Financial Results

• Revenues for the third quarter was $336.4 Million a 1.2% increase over last years quarter of $332.5 Million.
• EPS was $0.22 vs. last years $0.44, a decrease of -47.6%.

First Half 2013 Results

• Revenues for the six months ended June 30, 2013 were $212.6 million, an approximate 1.2% decrease from the prior period.
• Earnings per basic and diluted share were $0.09 for the period, compared to $0.38 in the first six months of 2012

Power cable sales in Thailand were the primary cause of the decrease in sales year over year mainly due to slowdown in customers' orders. Sales of telecommunications cable and enameled wire remained relatively flat year-over-year. Offsetting these declines were double digit increases in the sales of distributed products which increased by71% to $27.8 million, and the revenue recognition of contracts for Supply, Delivery and Installation ("SDI") of cable which increased by 337% to $7.1 million for the period.

TAIPEI, Taiwan, July 30, 2013 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (Nasdaq:APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced that Mr. Ivan Hsia has been appointed as the Company's new Chief Financial Officer effective August 1, 2013.

Mr. Hsia will replace Mr. Frank Tseng, who is stepping down from his position as CFO of APWC for personal reasons. The Company notes that Mr. Tseng resigned amicably and has no disagreements with the Company on financial reporting or other financial or business issues. The Company values the significant contributions made by Mr. Tseng during his tenure and notes that Mr. Tseng will also assist the Company during a transition period.

Mr. Ivan Hsia joined the Company in 2011 and served APWC initially as Senior Manager of APWC's internal audit group, prior to being appointed Deputy CFO of the Company. As Deputy CFO, Mr. Hsia has taken the lead on the Company's conversion from U.S. GAAP to IFRS, performed various CFO functions, and reported to Mr. Frank Tseng and Mr. Chun-Tang Yuan, CEO of APWC on special projects assigned to him. Mr. Hsia is a Certified Public Accountant in California, USA; he is also a Certified Internal Auditor and Certified Information System Auditor. Ivan Hsia previously held the position of Auditing Director in Newegg.com in Los Angeles. Prior to that, he served as an Audit Manager at PricewaterhouseCoopers in Taipei. Mr. Hsia holds a Master's degree in business administration in accounting from TamKang University, Taiwan.

"On behalf of our Board of Directors and management team, we want to sincerely thank Frank Tseng for his years of service as our CFO," states Chun-Tang Yuan, CEO of APWC. "Frank was the essential team member whose efforts contributed significantly to our Company's listing on Nasdaq in 2011 and our company's elevation to Nasdaq's Global Markets tier in March of this year. We are equally confident in Ivan Hsia's professional knowledge and extensive experience in financial reporting and corporate governance. At our Company, we feel that Ivan will continue to drive operational improvement, maintain our strong corporate governance and increase our investor outreach in his new role as CFO of the Company," Mr. Yuan concluded.

First Quarter 2013 Results

• Revenues for the year ended March 31, 2013 were $101.0 million, a 2.7% increase from the prior period.
• Gross profit for the quarter was $7.8 million versus $9.0 million in the year-ago period, representing gross margins of 7.7% and 9.2%, respectively.
• Net income attributable to APWC shareholders was $0.9 million for the year compared to $0.8 million in the corresponding period in 2012. Net income per basic and diluted share was $0.06 for both periods. The basic and diluted weighted average shares outstanding were 13.8 million for both periods.

Business Update

Asia Pacific Wire and Cable Company is currently completing its production lines of electronic wire for the electronics and automotive industry markets in China. Each of these sectors is high-growth markets in China. The Company expects to begin its sales efforts in the fourth quarter of the year.

Fiscal Year ended December 31, 2012

• Gross profit was $51.8 million, an increase of 18% from $43.9 million in FY2011
• Net income attributable to APWC shareholders was $10.9 million vs. a loss of $(5.4) million in FY2011
• Diluted earnings per share was $0.79 vs. a loss of $(0.39) in FY2011
• $72.8 million in cash and cash equivalents at December 31, 2012

"We are pleased to see our business rebound in 2012," began Yuan Chun Tang, CEO of Asia Pacific Wire & Cable Corporation Limited. "We expect these positive trends in profits and margins to continue throughout 2013, particularly in our power, telecommunications and distributed products. As we commence production of electronic wire at our Ningbo factory, we anticipate this new product line will contribute to our sales and profitability growth the second half of the year." Mr. Yuan concluded.

Non-Deal Road Show

The Company is participating in a non-deal road show May 7-10 in New York City. Frank Tseng and Ivan Hsia from the Company will be accompanied by John Mattio, IR agency for APWC. Investors interested in meeting with the Company should contact John Mattio, at MZ Group N.A. at the contact information listed below.

TAIPEI, Taiwan, April 25, 2013 (GLOBE NEWSWIRE) -- Asia Pacific Wire & Cable Corporation Limited (Nasdaq:APWC) ("APWC" or the "Company"), a leading manufacturer of wire and cable products for the telecommunications and electric-power industries in the Asia-Pacific region, today announced that the Company's Board of Directors voted to suspend its share buyback program due to in market conditions and the increase in the trading price of the Company's Common Shares over the past four months.

The Company's Board of Directors plans to consider the possibility of resuming the Share Repurchase Program after the release of the Company's 2012 financial results, the Board's consideration of likely Q1 results and prospects for the balance of 2013, taking into account also the Company's cash needs for planned expansions and the Board's consideration of overall market trends and conditions.

The Company remains committed to provide value to its shareholders and has planned a visit to the US to meet with current and prospective shareholders May 7-10, 2013. Please contact John Mattio at MZ Group if you are interested in meeting management during this non-deal roadshow.

Six Month Results for 2012

• Revenues were $215.3 million, a decrease of 20.4% from $270.5 million in 1H 2011
• Gross profit was $22.8 million, a decrease of 22.4% from $29.3 million in 1H 2011
• Gross profit margin was 10.6%, compared with 10.8% in 1H 2011
• Net income attributable to APWC shareholders was $5.3 million, an increase of 3% from $5.1 million in 1H 2011
• Basic and diluted earnings per share was $0.38, an increase of 2.7% from $0.37 in 1H 2011
• $54.2 million in cash and cash equivalents at June 30, 2012

APWC's first half 2012 revenues were adversely impacted by the severe flooding in Thailand that forced the temporary closure of many businesses in Thailand during the first quarter, including the Company's Siam Pacific operations. As of April 2012, the Company's Siam Pacific manufacturing facility in Thailand was fully rehabilitated and is now functioning at full operating capacity.

Share Repurchase Program

The Company announced today that its Board of Directors recently approved the implementation of a share repurchase program, pursuant to which the Company is authorized to repurchase up to $2 million worth of its Common Shares over the next 12 months. The Company plans to retain a financial adviser to manage the share repurchase program in accordance with Rule 10b-18 under the Securities Exchange Act. Once implemented, the common shares may be repurchased on the open market, in negotiated transactions, in block trades or otherwise. The timing and the extent of any purchases will depend upon market conditions, the trading price of the common shares and other factors, subject to the restrictions relating to volume, price and timing under applicable laws and regulations. The Company plans to announce the date of the commencement of the share repurchase program in the near future.

First Quarter 2012 Results

• Revenues were $98.3 million, a decrease of 19.3% from $121.8 million in Q1 2011
• Gross profit was $9.0 million, a decrease of 30.4% from $13.0 million in Q1 2011
• Gross profit margin was 9.2%, compared with 10.6% in Q1 2011
• Net income attributable to APWC shareholders was $0.8 million, a decrease of 69.4% from $2.7 million in Q1 2011
• Basic and diluted earnings per share was $0.06, a decrease of 70.0% from $0.20 in Q1 2011
• $57.6 million in cash and cash equivalents at March 31, 2012

Our first quarter 2012 results were adversely impacted by the severe flooding in Thailand that forced the temporary closure of many businesses in Thailand, including our Siam Pacific operations, reducing our sales for the quarter and resulting in a direct charge reflected in our operating results of approximately $0.7 million.

Our Siam Pacific manufacturing facility in Thailand was fully rehabilitated in April 2012 and is now functioning at full operating capacity.

Full Year Results

• Revenues for the year ended December 31, 2011 were $471.9 million, a 5.7% increase over $446.6 million in the corresponding period
• Gross profit for the year was $43.9 million, a decrease of 23% from $57 million in the corresponding period
• Net loss attributable to APWC shareholders for the year ended December 31, 2011 was $5.4 million, compared to $14.1 million in net income in the corresponding period in 2010.
• Net loss per basic and diluted share was $0.39 for the period, compared to net income per basic and diluted share of $1.02 in the prior year.
• Non gaap for fiscal 2011 EPS of $0.52 vs $1.02 in prior year
• Fourth Quarter net loss per share of $0.68 vs net income per share of $0.22

Our 2011 results were adversely impacted by two material events: severe flooding in Thailand that forced the temporary closure of many businesses in Thailand, including our operations, and a significant goodwill impairment. The aggregate impact of these two material events was a direct charge reflected in operating results of approximately $(12.7) million.

Recent Events

Thailand Flood Losses

APWC's Thailand facility, Siam Pacific Electric Wire and Cable Co., Ltd., suspended operations temporarily in the fourth quarter of 2011 due to damage sustained from the region's recent flooding. The Siam Pacific facility, located 30 kilometers (18.6 miles) north of Bangkok, manufactures enameled wire and communication wire. The facility sustained water damage, as the water level reached approximately 1.5 meters which damaged some of the machinery and equipment in the plant, as well as some of the inventory in the warehouse. As a result, the Company recorded $3.9 million of flood-related charges, including fixed asset impairments, recovery charges and a write-down of damaged inventory and recognized $0.9 million of deferred tax asset related to the charges in 2011.

The Company's insurance policy covers the flood damage to the building, machinery, and inventory; however, it does not cover losses due to the business disruption. The process of submitting claims to the Company's insurers is in its early stages and the Company is unable to determine how much of its losses will be covered by insurance.

Goodwill Impairment

The Company assessed the fair value of the reporting unit as of December 31, 2011. The Company adopted the discounted cash flow approach and, considering that the reporting unit constituted the majority of the overall consolidated group, by reference to the closing price of its common shares on that date as well as an assumed control premium. From January 2011 to December 2011, the downturn generally in the wire and cable sector caused a major decline in the Company's stock price. The carrying value exceeded the assessed fair value of the reporting unit as of year-end. The Company then determined that the goodwill was fully impaired. As a result, the Company recognized a goodwill impairment charge of $8.8 million for the year ended December 31, 2011 as a separate line item in the consolidated statement of operations.

Third Quarter 2011 Results

The Company reported solid revenue growth in the third quarter and during the first nine months of 2011. However, the significant drop in the copper price in the third quarter of 2011 resulted in an inventory allowance, which reduced gross profit and caused an operating loss. The Company's products and services are primarily used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region.

Second Quarter 2011 Results

First Quarter Results:

• Revenues were $121.8 million, an increase of 16.1% from $104.8 million in the same period a year ago
• Gross profit increased to $13.0 million, an increase of 13.5% from $11.4 million from the first quarter of 2010
• Gross profit margin was 10.6%, compared with 10.9% in the year-ago period
• Net income attributable to APWC shareholders was $2.7 million, compared with $3.7 million in the same period a year ago
• Basic and diluted earnings per share were $0.20, compared with $0.27 in the first quarter of 2010

In the current environment surrounding U.S.-listed China companies, the Company would like to emphasize APWC's more than 40-year history as a stable, multinational company serving Singapore, Thailand, and other countries in Southeast Asia and demonstrating solid business performance and financial results.  The Company recently completed its annual audit by the leading global firm, Ernst & Young, and has filed its annual report on form 20-F ahead of the June 30 deadline.  APWC as a company and as a brand enjoys a good reputation with its customers and operates from an extremely sound financial position with strong auditing procedures and internal controls and close adherence to SEC and other regulations.  The Company recently improved its corporate governance by appointing a highly qualified independent director, who serves on the Company's Audit Committee, in addition to improving its standing with investors through its upgrade to the NASDAQ Capital Market exchange.

First Quarter Results:

• Revenues were $469.3 million, an increase of 29.6% over fiscal year 2009
• Gross profit increased to $61.7 million, an increase of 33.0 % from $46.4 million in 2009
• Gross profit margin was 13.1%, compared with 12.8% in 2009
• Net income attributable to APWC shareholders was $14.1 million, a 40.2% increase from $10.1 million in 2009
• Basic and diluted earnings per share were $1.02, an increase of 39.7% from $0.73 per share in 2009

TAIPEI, Taiwan, April 15, 2011 /PRNewswire-Asia-FirstCall/ -- Asia Pacific Wire & Cable Corporation Limited today announced that its common stock has been approved for listing on the NASDAQ Capital Market.  The shares are scheduled to trade on the NASDAQ Capital Market under the ticker symbol "APWC" and the Company understands that trading will commence in the coming days.

The Company is pleased to make the transition to the NASDAQ Capital Market and enter this new phase as a public company.  The listing represents an important milestone in APWC's continuing effort to raise its profile within the investment community, improve its stock's liquidity, provide greater transparency, and enhance its corporate governance.

Asia Pacific Wire & Cable (OTC BB:AWRCF) has been quietly inching higher at a time when most U.S. listed Chinese stocks have been struggling just to stay even. After reporting a non-GAAP loss in 2009, the company has reported two solid quarters of strong revenue and EPS growth in 2010. On September 12, 2010, I had a lengthy conversation with CFO Frank Tseng to determine if growth can continue.

First I asked him to address the following questions:

-You distribute wire and cable products. What has fueled your recent growth?
-How has the pricing environment fared?
-How do prices compare to historical levels?
-Is the growth you are currently experiencing more of a reflection of an improving pricing environment rather than lifting demand?
-Will you see sequential growth in the 3rd and 4th quarters or similar numbers to your first half performance?
-Do you experience seasonality?
-Have sales rebounded within or over your internal projections?

Answer - The company is experiencing growth in sales and EPS due to improved demand and pricing trends. Frank commented that the recovery in the markets it serves has been stronger than expected, fueled by a rise in copper prices which have stabilized at about $6,000 per metric ton. Prices peaked in 2008 around $8,000 per metric ton before quickly plummeting to around $3,000 per metric ton during the 2008 global recession. Given stable copper prices, the outlook for the third and fourth quarter remains positive, especially as the back half of the year is historically stronger than the first half.

I asked him to address the following:

I noticed that, historically, your EPS growth and operating income growth have been erratic. What are you doing to address this issue? I am somewhat concerned that once the company exits 2010, the GeoTeam’s minimum 30% growth threshold may be difficult to achieve.

-Do you see your markets as growing or maturing?
-Do you plan to introduce new products?
-Where will growth come from once pricing stabilizes?
-After the easy comparisons in 2010 abate, can you experience above average growth EPS growth in 2011?

Answer - New growth opportunity in China. Frank commented that the company’s normalized top line revenue growth could come in at about 10.0% to 15.0%. Most of the markets it serves are mature markets, where it holds a leading position, making incremental growth challenging during normalized times. However, there are a few reasons that could make our EPS target achievable. First demand may continue to improve as the global economy strengthens. Second, if copper prices continue to rise, top line growth could accelerate. Third and most importantly, AWRCF plans to introduce a new electronic interconnect product line in its China markets. In Ningbo, AWRCF shut down one of its Chinese facilities which was manufacturing products that essentially became obsolete. Under the new leadership of the Board, who joined the company in October 2009, a decision was made to reopen and revamp this facility. While the major effects of this endeavor will not be fully felt until 2013, AWRCF believes it may be able to experience gradual incremental benefits, as monthly production capacity expands from 20 thousand metric tons to 200 thousand metric tons, possibly pushing sales from this line to 200 million RMB in 2012. The company believes that gross margins of this new product line may approach 20%, which is double the margin of most of its current product lines. Eventually, margins could get an additional boost when high voltage products are added to the mix that currently only include low & mid voltage products. From initial inquiries with over 50 customers, the company is optimistic that it will be able to gain a number 2 position in the electrical wire market rather quickly. Management claims that it will offer high quality products at comparable prices to its competitors.

GeoInvesting comment: My take on the current situation is that the company should be able to easily exceed $1.00 in per share in 2010. Although management is optimistic about 2011, we are still not totally convinced that 30% EPS growth will occur. If plans work out accordingly, 2012 could be a major year of growth for AWRCF. The new product line is expected to help deliver more consistent EPS growth. We are just not sure how much. We also need to break out the 2009 quarters and calculate the allocation of one times gains associated with recovery of inventory.  (In 2008 the company wrote down inventories due to falling copper prices, which resulted in a GAAP loss. In 2009 the situation was reversed, which resulted in GAAP EPS of $0.73. After adjusting for this issue, 2009 EPS would have been negative).

Additional Questions:

Question - What are your plans for international expansion?

Answer - We will continue to serve our existing markets in Thailand, China, Singapore and Australia. We view Thailand as a stable market where we maintain leading market positions. The Australian market is saturated and the Singapore market is up and down due to the manner in which government contracts are awarded. Singapore has also attracted competition from Japan and Korea. Overall, China is the market we plan on exploiting for future growth by gaining market share and introducing new products. We may look at Indonesia as a potential market, but this is about five years out.

Question - Will you need to access equity capital?

Answer - We have ample credit lines and good relations with lenders. We do not currently foresee a need to access equity markets for capital.

Question - I noticed in your 20F that stipulations exist, set by one of your investors, that you must list on a senior exchange. Where are you on this?

Answer - We are progressing nicely and expect to meet this requirement in the near future.

Question - Excerpt from 20F:

As of December 31, 2009, the Company effectively owned 50.93% of the issued and outstanding shares of Charoong Thai Wire and Cable Public Company Limited (“Charoong Thai”). That percentage ownership constitutes a decrease from the Company’s initial ownership percentage and is attributable to the exercise of warrants or conversion of convertible securities by third parties. The Company’s present intention is to maintain majority ownership of the voting securities of Charoong Thai. However, there may be circumstances under which the Company cannot maintain majority ownership of Charoong Thai. In the event Charoong Thai determined to make a further offering of voting securities, or securities convertible into or exchangeable for voting securities, and the Company was not in a position to fund or finance its participation in the offering, the ownership interest of the Company in Charoong Thai could fall below 50%. If the Company’s holding in Charoong Thai were to fall below 50%, the accounts of the Charoong Thai group, which includes all of the Company’s Thailand operations, will not be consolidated but instead will be equity accounted. In such an event, the Company’s accounts will show a decrease in revenue and most categories of assets and liabilities, which events could have a material adverse effect on the value of the Common Shares.

Question - Do you see this as noticeable risk?

No. We control the board and would not vote in favor of a transaction that would take our ownership under 50%.

Question - Will you consider preparing detailed quarterly SEC financial statements that will include cash flow statements?

Answer - All I will say is that we have plans to increase our communication with investors and provide more financial disclosure.

Question - I noticed that your 20F includes a statement:

The Company focused on improving its disclosure controls and procedures and its internal control over financial reporting and remediating all material weaknesses, and as a result, both disclosure controls and procedures and internal control over financial reporting were classified as effective as of December 31, 2008, but ineffective as of December 31, 2009 due to the development of material weaknesses.

Should investors be concerned about this issue?

Answer - No. We are addressing this. Furthermore, the weakness did not involve serious accounting issues.

Note of perception:

Per the 20F, investors should be aware that PEWC, the majority shareholder, is a Taiwanese company engaged in the manufacture and distribution of wire and cable products in the markets. In November 2004, certain former officers and directors of PEWC (the “Former Executives”) were indicted by the Taipei District Prosecutors Office for their breach of trust, embezzlement of corporate funds, making of false accounting records and financial statements, and violation of various Taiwan securities laws. The most serious allegations of corporate theft and misappropriation were directed at Mr. Hu, the former chief financial officer of PEWC. As early as 1992, the Former Executives had incorporated a complex network of companies for the purpose of transferring PEWC funds out of Taiwan and of acquiring overseas investments for their personal benefit.

In addition, they borrowed loans from banks for their personal benefit and made PEWC a guarantor for such borrowings, which were eventually repaid by PEWC. In an elaborate concealment scheme, the books of PEWC were balanced by way of fictitious bank deposits with certain banks incorporated in Vanuatu and other remote jurisdictions. The fraudulent actions of the Former Executives were uncovered in 2001 and 2002, when PEWC incurred losses attributable to the scheme equal to approximately $160 million and $669 million, respectively. To the best knowledge of the Company, proceedings against the Former Executives are continuing in the Taipei District Court. However, the Company is not a party to, or otherwise involved in, those proceedings. PEWC, the majority shareholder, is a Taiwanese company engaged in the manufacture and distribution of wire and cable products in the Taiwan markets. In November 2004, certain former officers and directors of PEWC (the “Former Executives”) were indicted by the Taipei District Prosecutors Office for their breach of trust, embezzlement of corporate funds, making of false accounting records and financial statements, and violation of various Taiwan securities laws. The most serious allegations of corporate theft and misappropriation were directed at Mr. Hu, the former chief financial officer of PEWC. As early as 1992, the Former Executives had incorporated a complex network of companies for the purpose of transferring PEWC funds out of Taiwan and of acquiring overseas investments for their personal benefit. In addition, they borrowed loans from banks for their personal benefit and made PEWC a guarantor for such borrowings, which were eventually repaid by PEWC. In an elaborate concealment scheme, the books of PEWC were balanced by way of fictitious bank deposits with certain banks incorporated in and other remote jurisdictions. The fraudulent actions of the Former Executives were uncovered in 2001 and 2002, when PEWC incurred losses attributable to the scheme equal to approximately $160 million and $669 million, respectively. To the best knowledge of the Company, proceedings against the Former Executives are continuing in the Taipei District Court. However, the Company is not a party to, or otherwise involved in, those proceedings.

Frank commented that the ultimate outcome of this issue should not have a bearing on the survival or operations of AWRCF.

Maj Soueidan

Disclosure at time of this article: Long a small postion in AWRCF

Second-Quarter 2010 Highlights:

• Revenues increased 27.2% to $106.0 million from $83.4 million in the second quarter of 2009.
  
• Gross profit increased 32.8% to $14.2 million from $10.7 million in year-ago quarter of 2009.
  
• Operating income more than quintupled to $7.0 million from $1.3 million in the second quarter of 2009.
  
• Net income attributable to APWC stockholders increased 61.8% to $3.7 million, or $0.27 per diluted share, from $2.3 million, or $0.17 per diluted share, in the same period last year.
  
• Shareholders' equity attributable to APWC stockholders was $134.7 million as of June 30, 2010, compared to $127.4 million at the end of 2009.

"The strong momentum in our business we experienced in the first quarter of 2010 continued through the second quarter," said Mr. Chun Tang Yuan, Chief Executive Officer of APWC. "Demand for our products continued to remain strong-particularly for enameled wire and power cable. During the first half of the year, the copper price has remained within a stable range. The majority of our products and services are used in industrial, power and telecommunications infrastructure in the growing Asia-Pacific region