AU Optronics Corp. Reports 4Q2010 Financial Results

By Au Optronics Corporation, PRNE
Wednesday, January 26, 2011

HSINCHU, Taiwan, January 27, 2011 - AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO)
today held its investors conference and announced its unaudited results for
the fourth quarter of 2010(1).

AUO posted consolidated revenue of NT$102,605 million (US$3,521 million)
(2), down 17.5% from the previous quarter. Gross profit was at -NT$4,537
(US$156 million), with the gross margin of -4.4%. Operating loss was
at NT$11,080 million (US$380 million), with the operating loss margin of
10.8%. AUO's net loss for the fourth quarter was at NT$11,339 million (US$389
). Net loss attributable to equity holders of the parent company was
NT$11,465 million (US$393 million), with basic EPS of -NT$1.3 per common
share (-US$0.45 per ADR).

For the year of 2010, AUO reported consolidated revenues of NT$467,158
(US$16,320 million), with net income of NT$7,408 million (US$254
) or basic EPS of NT$0.76 per common share (US$0.26 per ADR). In 2010,
shipments for AUO's large-sized panels exceeded 113.5 million units, up 26.7%
year-over-year. Meanwhile, shipments of small- and medium-sized panels
reached around 220.9 million units, down 3.4% year-over-year.

4Q2010 Result Highlights

AUO's unaudited consolidated results for the fourth quarter of 2010 were
highlighted as below:

    - Revenue of NT$102,605 million, down 17.5% quarter-over-quarter
    - Net loss of NT$11,339 million
    - Basic EPS of -NT$1.3 per common share
    - Gross margin of -4.4%
    - Operating margin of -10.8%
    - EBITDA (3) margin of 10.7%

Fiscal 2010 Result Highlights

AUO reported the following unaudited consolidated results for the full
year 2010:

    - Revenue of NT$467,158 million, up 30% year-over-year
    - Net income of NT$7,408 million
    - Basic EPS of NT$0.76 per common share
    - Gross margin of 7.8%
    - Operating margin of 2.2%
    - EBITDA (3) margin of 21.3%

"Owing to the lower-than-expected TV panel prices, inventory control by
the customers, and the currency influence of NT dollar appreciation, AUO's
operating performance in the fourth quarter of 2010 fell short of
expectations. Fortunately, the Company maintained profitable throughout the
year of 2010," said Mr. Andy Yang, Chief Financial Officer of AUO. "As the
Company proactively adjusted the capacity utilization rates in the fourth
quarter, our quarter-end inventory amounts were able to decrease
sequentially. The Company's EBITDA margins also maintained a leading
position. In addition, the Company's inventory turnover days remained at 40
days at the end of the fourth quarter, the same as those in the previous

Looking into the first quarter of 2011, as customers' inventory
adjustments gradually come to an end, demands are expected to gradually
recover. The Company's panel shipments and capacity utilization rates are
also expected to improve quarter over quarter. At the same time, AUO will
continue to implement the "value-oriented" business strategy in 2011. For
example, leading-edge technologies to produce 3D panels, touch modules, OLED
displays and other high-end, value-added products are anticipated to enter
mass production this year. On the other hand, the Company will continue to
strengthen the strategic alliance with customers, and hope to improve the
product profitability as well as asset turnover ratios, which could
eventually contribute to a better return on equity (ROE).

(1) All financial information was unaudited and was prepared by the
Company in accordance with generally accepted accounting principles in Taiwan

(2) Amounts converted by an exchange rate of NTD29.14:USD1 based on
Federal Reserve Bank of New York, USA as of Dec. 31, 2010.

(3) EBITDA=Operating Income +D&A, that is, operating income before
depreciation and amortization.


AU Optronics Corp. (AUO) is a global leader of thin film transistor
liquid crystal display panels (TFT-LCD). AUO is able to provide customers
with a full range of panel sizes and comprehensive applications, offering
TFT-LCD panels in sizes ranging from 1.2 inches to greater than 71 inches.
AUO generated NT$467.2 billion in sales revenue in 2010 (US$16 billion) with
global operations in Taiwan, Mainland China, Japan, Singapore, South Korea,
the U.S., and Europe. Additionally, AUO is the first pure TFT-LCD
manufacturer to be successfully listed at the New York Stock Exchange (NYSE).
AUO extended its market to the green energy industry in late 2008. The
Display and Solar businesses were established respectively as the Company's
two core businesses in October, 2010. For more information, please visit

* 2010 year end revenue converted at an exchange rate of NTD29.14:USD1.

Safe Harbour Notice

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO), a
global leader of 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 of 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 May 11th, 2010.

Freda Lee, Corporate Communications Division of AU Optronics Corp., +886-3-5008800 ext 3206, Fax: +886-3-5772730, freda.lee at; Yawen Hsiao, Corporate Communications Division of AU Optronics Corp., +886-3-5008800 ext 3211, +886-3-5772730, yawen.hsiao at

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