Pacific Insight Electronics Corp.

PIH.TO (CA69444E1088)

Pacific Insight Electronics Corp. (Pacific Insight) is a Canada-based provider of leadership, planning, design and manufacture of electronic solutions for the transportation industry.

Market: Toronto

Fair value: CAD 16.25

Discount: 71%
Average yearly return: 37%
Yield: N/A
Outperformer

On September 13, 2016 PIH announced:

For the year ended June 30, 2016, revenues were $127.2 million compared to $82.5 million in the prior year period, an increase of 54%. The increase in revenues was driven by new LED lighting product launches, a strong North American automotive market, and favourable foreign exchange rate fluctuations. The Company launched several new automotive programs in the second half of fiscal 2015 which reached production level volumes in the fourth quarter of fiscal 2015 and early in fiscal 2016.

Net income for the year ended June 30, 2016 was $9.8 million or $1.42 earnings per diluted share compared to a net income of$2.4 million or 40¢ per diluted share for the year ended June 30, 2015. The increase in net income was the result of higher revenues along with operational and production efficiencies. The higher net income was also partly offset by an increase in costs to support increased business, new programs, and engineering initiatives.

Revenues for the three months ended June 30, 2016 were $31.3 million, an increase of 15% from $27.3 million for the comparative quarter ended June 30, 2015. The increase in revenues was driven by new LED lighting products and systems launched to automotive customers on various platforms and a strong North American automotive market.

Net income for the three months ended June 30, 2016 was $2.2 million or 30¢ per diluted share compared with $1.7 million or 29¢ per diluted share in the prior year quarter. Net income increased compared with the prior year quarter as a result of higher revenues offset by less favourable gross margins on customer programs in the prototype stage and higher related operational expenses.