ACL Semiconductors with net loss

Mr. Chung-Lun Yang, Chairman and Chief Executive Officer of ACL Semiconductors Inc., commented, "We are in the process of transforming our business in 2012 with two acquisitions currently pending. During the next two months, we expect to close the acquisitions that were previously announced for Systematic Semiconductor Limited and USmart Electronic Products Limited. Both are expected to diversify our business with higher margin components. We are confident that these growth drivers will benefit both ACL and our shareholders by ensuring our Company is well positioned in a constantly changing business environment." Net revenue for the quarter ended March 31, 2012 was $42.4 million, as compared to revenue of $121.0 million for the same period last year. First quarter 2012 net sales decreased due to the reduced demand caused by weak and volatile market conditions, and a strong reluctance on the part of our customers, due to economic concerns, to maintain inventory during the Chinese New Year holiday. Net loss for the quarter ended March 31, 2012 was $865.7 thousand, compared to net income of $1.4 million in the same period last year. The decrease in net income was caused by the reduced sales and decreased gross profit. Loss per diluted share was $0.03 for the quarter ended March 31, 2012, compared to earnings per diluted share of $0.05 in the same period last year. Gross profit for the first quarter 2012 was $364.8 thousand, compared to $2.9 million for the first quarter 2011. Gross margin for the first quarter 2012 was 0.9%, compared to 2.4% for the first quarter 2011. The decrease in gross profit and gross margins was mainly due to the reduction in sales volume, as well as tighter profit margins due to the weak market condition. Mr. Chung-Lun Yang continued, "Volatility in the global markets, combined a strong reluctance from our customers to retain inventory during the Chinese New Year, negatively affected sales in the first quarter. By diversifying our business through acquisitions, we expect that ACL will be better positioned to manage such situations in future quarters."