Issue Date: May 03, 2016

• Revenues decreased by 7% to NT$495 million during the first quarter of 2016.
• Gross profit decreased 17% to NT$236 million. The products mix change from increased shipment of Target series network cameras and decreased shipment of DVR cards have led to gross margin pressure to 48% from 54% in 1Q15.
• Operating expenses increased 2% on account of a newly-established business unit in Taiwan starting 4Q15, which led to an operating margin to drop to 16% from 25% the same period last year.
• Foreign exchange losses in 1Q16 were NT$21 million
• Net income decreased 40% to NT$47 million which corresponds to an EPS of NT$0.61 based on the current capital of NT$775 million.
• Among all the regions, sales in North America, Africa, and Western Europe managed to grow despite sharp competition in global video surveillance market.
• The net sales of the economic models Target network cameras contributed to over 36% of the network cameras revenue, which takes up 61% of the total products revenue in 1Q16.
• GeoVision has released GV-Video Management Software of version 15.10.1.0, which supports Windows 10, H.265 network camera monitoring, GV-ASManager Access Control software, and GV-Fisheye dual streaming.

GeoVision Financial Results:

The following are the highlights of the company’s financial results for the first quarter ended March 31, 2016.