AU Optronics Corporation (AU Optronics) returned to profitability in 3Q 09 and exceeded our estimates, driven by strong revenue growth and a reduction in operating expenses. Management expects large panel shipments in 4Q 09 to stay at similar levels as 3Q 09 due to strength in TV sales, but expects medium and small panel shipments to decline sequentially in 4Q 09. Prices are also expected to decline q-o-q in 4Q 09. It is likely that we will revise our estimates…

AU Optronics Corporation (AU Optronics) reported a robust sequential increase in net sales in 2Q 09, supported by strengthening demand. Losses also contracted on a sequential basis. Going forward, Management has guided for continued improvement in shipments and prices on a sequential basis. The results out-performed our expectations and Management outlook for 3Q 09 is better than our previous estimates. In light of this…

AU Optronics has guided for a robust sequential growth in net sales in 2Q 09, where the company expects a 50% increase in large panel unit shipments and approximately 30% q-o-q increase in small and medium panel shipments. The company also believes overall ASP for large panels has been stabilizing and is expected to increase from 1Q 09 levels, going forward. Strong demand from China, associated with the stimulus package announced by the Chinese government…