Issued on: 2015/1/8

GeoVision announced its preliminary consolidated financial results for the fourth quarter and the fiscal year of 2014.

Net revenues for the fourth quarter at NT$558.3 million:

• Up 0.9% sequentially from NT$553.3 million in the third quarter of 2014.
• Down 0.3% year over year compared to NT$NT$559.9 million in the same period of 2013.

Net revenues for FY2014 at NT$2,222.0 million:

• Slightly down 1.6% compared to NT$2,258.0 million in the fiscal year of 2013
• Sales from DVR products continued to decline due to the security industry shift to networked solutions.
• Despite the competition in the market, the company’s network surveillance products managed a slight growth in shipment volumes and product sales, thanks to the release of Target-series network cameras.

Gross margin for the fourth quarter at 52.0%

• Slightly down 0.1% from 52.1% of the third quarter of 2014

Gross margin for the FY2014 at 53.0%

• Gross margin was down 2% compared to the same period of 2013, mainly due to the products mix change between DVR products and network cameras.

Operating income for the fourth quarter at NT$131.8 million or 23.6% of the revenues

• Down 6.2% sequentially from the third quarter of 2014
• Down 11.8% compared to the same period of 2013.

Operating income for FY2014 at NT$564.4 million or 25.4% of the revenues

• Down 14.1% compared to the year of 2013

Income before tax for the quarter at NT$156.3 million or 28.0% of the revenues

• Up 18.5% sequentially from NT$131.9 million in third quarter of 2014 because of foreign currency exchange gains from US dollars appreciation.
• 4.2% lower compared to NT$163.2 million in the same period of 2013.
• Pre-tax EPS for the quarter at NT$2.23

Income before tax for FY 2014 at NT$589.0 million or 26.5% of the revenues

• Down 16.0% from NT$701.2 million in the year of 2013
• Pre-tax EPS for FY2014 at NT$8.42

《GeoVision Consolidated Income Statement (Unaudited)》

	Q4 2014				FY2014
Unit: NT$K	Amount	%	QoQ	YoY	Amount	%	YoY
Net Sales	558,336	100	0.9%	-0.3%	2,222,014	100	-1.6%
Gross Profit	290,258	52.0	0.6%	-4.7%	1,177,618	53	-5.1%
Operating income	131,750	23.6	-6.2%	-11.8%	564,412	25.4	-14.1%
Income before Tax	156,308	28.0	18.5%	-4.2%	589,002	26.5	-16.0%
Pre-tax EPS (NT$)	2.23		18.5%	-13.0%	8.42		-23.6%

* The figures are un-audited.