Notebook ODM Compal Electronics has announced a revision of its financial report for the first quarter of 2014 due to loss of NT$4.73 billion (US$157 million) arising from results of arbitration. The revision sees the firm swing from net profit of NT$2.605 billion with net EPS of NT$0.57 originally stated in the first-quarter statement to net loss of NT$2.125 billion with net loss per share of NT$0.53.

　　Compal in 2009 acquired a 19.7% stake in TFT-LCD panel maker Chunghwa Picture Tubes (CPT) at NT$7 billion through private placement, becoming the second largest shareholder next to Taiwan-based Tatung. The deal was attached with a string that Tatung should buy back Compal's stake in CPT at a certain price three years after the private placement.

　　After three years Compal asked Tatung to buy back the stake, but when Tatung failed to fulfill the agreement, Compal filed a request for arbitration demanding Tatung return the NT$7 billion on March 29, 2013.

　　The Chinese Arbitration Association in Taipei, Taiwan's authoritative arbitration organization, recently ruled that Tatung should buy back the CPT shares from Compal in three installments at a total price of NT$2.119 billion plus interest at an annual rate of 5%.

　　Tatung will have to pay Compal a total of NT$2.27 billion, short of Compal's original investment by NT$4.730 billion, which is recognized by Compal as non-operating loss for the first quarter of 2014.

　　Compal on May 13 decided to repurchase 100 million shares of its stock, representing a 2.27% stake, at NT$21.05-33.24 per share during the two months from May 14 to July 13, 2014.