AU Optronics Reports 4Q2006 and Full Year Results

AU Optronics Reports 4Q2006 and Full Year Results

February 08, 2007

    HSINCHU, Feb. 8 /Xinhua-PRNewswire/ -- AU Optronics
Corp. ("AUO" or the "Company") (TAIEX:
2409; NYSE: AUO) today announced unaudited results for 4Q
2006 and the FY 2006. For the fourth quarter ended December
31, 2006, AUO's consolidated revenue reached NT$94.6 billion
(*US$2.9 billion), net income NT$1.7 billion (US$51
million), and basic EPS NT$0.19 per common share (US$0.06
per ADS unit). 

    Fourth Quarter Results

    AUO reported the following unaudited consolidated
results for the fourth quarter: 

    -- Revenues up 32.7% QoQ to NT$94.6 billion
    -- Net income of NT$1.7 billion
    -- Earnings per share (basic EPS) of $0.19 per common
share
       (US$0.06 per ADS)
    -- Gross margin of 8.1% 
    -- Operating margin of 3.0% 

    The 4Q2006 panel shipments of large-sized panels were
in accordance with the Company's guidance revised on
December 7, 2006, and broke the historical records.
Shipments of large-sized panels increased 31.7% to 16.6
million from 3Q, and reached a remarkable YoY growth of
72.9%. In the mean time, shipments of small- to
medium-sized panels amounted to 24.5 million with a 17.7%
increase from 3Q, up 54.1% from a year earlier.

    Full Year Results

    For the full year of 2006, consolidated revenue reached
NT$293.1 billion (US$9.0 billion), net income NT$9.1 billion
(US$279 million), and basic EPS NT$1.41 per common share
(US$0.43 per ADS). The large-sized panel shipment grew a
59.1% YoY to 48.8 million units; while the small- to
medium- sized panel shipment posted a 46.6% YoY increase to
79.2 million units.

    "After the completion of merger with Quanta
Display Inc. (QDI), the loss of QDI for the previous two
quarters of 2006 has been turned around through the better
product integration and cost structure, even though we
amended the rate of fab loading in 4Q because of an early
sign of controlling year end inventory from some of our
customers," said Mr. Max Cheng, Vice President and
Chief Financial Officer of AUO.  "Additionally, we
posted little profit gain and maintained a stable EBITDA
margin for the fourth quarter and reached the gross margin
of 8.1% and operating margin of 3.0%, which is able to show
our determination to increase profitability through merger
synergies."

    * Amounts converted by an exchange rate of
NTD32.59:USD1 as of December 31, 2006.

    About AU Optronics

    AU Optronics Corp. ("AUO") is one of the top
three largest manufacturers* of large-size thin film
transistor liquid crystal display panels
("TFT-LCD"), with approximately 20.7%* of global
market share with revenues of NT$293.1billion (US$9.0bn)*
in 2006.  TFT-LCD technology is currently the most widely
used flat panel display technology.  Targeted for 40"+
sized LCD TV panels, AUO's new generation (7.5-generation)
fabrication facility production started mass production in
the fourth quarter of 2006.  The Company currently operates
one 7.5-generation, two 6th-generation, four 5th-generation,
one 4th-generation, and four 3.5-generation TFT- LCD fabs,
in addition to eight module assembly facilities and the AUO
Technology Center specializes in new technology platform and
new product development.  AUO is one of few top-tier TFT-LCD
manufacturers capable of offering a wide range of small- to
large- size (1.5"-46") TFT-LCD panels, which
enables it to offer a broad and diversified product
portfolio.

    * As shown on DisplaySearch Quarterly Large-Area
TFT-LCD Shipment Report dated November 2, 2006 (AUO market
share = pre-merger AUO market share + QDI market share). 
This data is used as reference only and AUO does not make
any endorsement or representation in connection therewith.
2006 year end revenue converted by an exchange rate of
NTD32.59:USD1.

    Safe Harbour Notice 

    AU Optronics Corp. ("AUO" or the
"Company") (TAIEX: 2409; NYSE: AUO), the world's
third largest manufacturer of large-size TFT-LCD panels,
today announced the above news.  Except for statements in
respect of historical matters, the statements contained in
this Release are "forward-looking statements"
within the meaning of Section 27A of the U.S. Securities
Act of 1933 and Section 21E of the U.S. Securities Exchange
Act of 1934. These forward-looking statements were based on
our management's expectations, projections and beliefs at
the time regarding matters including, among other things,
future revenues and costs, financial performance,
technology changes, capacity, utilization rates, yields,
process and geographical diversification, future expansion
plans and business strategy. Such forward looking
statements are subject to a number of known and unknown
risks and uncertainties that can cause actual results to
differ materially from those expressed or implied by such
statements, including risks related to the flat panel
display industry, the TFT-LCD market, acceptance and demand
for our products, technological and development risks,
competitive factors, and other risks described in the
section entitled "Risk Factors" in our Form 20-F
filed with the United States Securities and Exchange
Commission on June 1st, 2006.


    For more information, please contact:

     Yawen Hsiao
     Corporate Communications Dept.
     AU Optronics Corp.
     No.1, Li-Hsin Road 2, Science-Based Industrial Park,
     Hsinchu City, 300, Taiwan, R.O.C.
     Tel:   [phone] x3211
     Fax:   [phone]
     Email: [e-mail] 


SOURCE  AU Optronics Corp.