Global-Tech Advanced Innovations Slips To Loss In Q2; To Close Its EMS Business

(RTTNews) - Global-Tech Advanced Innovations Inc. (GAI) reported a net loss for the second quarter of fiscal 2014 of $5.2 million, or $1.70 per share, compared to a net income of $0.2 million, or $0.07 per share in the prior year period.

Net sales declined to $12.6 million from $26 million in the corresponding quarter in fiscal 2013 primarily due to sharp declines in sales in its EMS business.

The company also announced its plan to close its EMS business, as its EMS business have been adversely affected by rising labor costs, high turnover and downward pricing demands from major customers. The company noted that these issues were likely to continue given the weakening Chinese domestic market.

Further, the company said it expects improvement in the operating results of its electronic components business in the upcoming quarter.