Edgar Filing: AU OPTRONICS CORP

FORM 6-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

Report of Foreign Private Issuer

Pursuant to Rule 13a-16 or 15d-16
of the Securities Exchange Act of 1934

February 8, 2007

Commission File Number 001-31335

AU Optronics Corp.
(Translation of registrant’s name into English)

No. 1 Li-Hsin Road 2
Hsinchu Science Park
Hsinchu, Taiwan
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F X Form 40-F ___

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
____

Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
____

Note: Regulation S-T Rule 101(b)(7) only permits the submission in paper of a Form 6-K if submitted to furnish a report or other document that the registrant foreign private issuer must furnish and make public under the laws of the

jurisdiction in which the registrant is incorporated, domiciled or legally organized (the registrant’s “home country”), or under the rules of the home country exchange on which the registrant’s securities are traded, as long as the report or other document is not a press release, is not required to be and has not been distributed to the registrant’s security holders, and, if discussing a material event, has already been the subject of a Form 6-K submission or other Commission filing on EDGAR.

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ___ No X

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):
Not applicable

INDEX TO EXHIBITS

Item

1.	Press release entitled, “AU Optronics Reports 4Q2006 and Full Year Results”, dated February 8, 2007.

2.	Investor Conference Materials entitled, “AU Optronics Corp. Fourth Quarter 2006 Results”, dated February 8, 2007

3.	Press release entitled, “ AU Optronics January 2007 Sales Total at NT$28.5 Billion”, dated February 8, 2007

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	AU Optronics Corp.


Date: February 8, 2007	By:	/s/ Max Cheng
		Name:	Max Cheng
		Title:	Chief Financial Officer

Item 1

News Release

AU Optronics Reports 4Q2006 and Full Year Results

Issued by: AU Optronics Corp.
Issued on: February 8, 2007

Hsinchu, Taiwan, February 8, 2007 –

AU Optronics Corp. ("AUO"or the "Company") (TAIEX: 2409; NYSE: AUO) today announced unaudited results for 4Q 2006 and the FY 2006. For the fourth quarter ended December 31, 2006, AUO’s consolidated revenue reached NT$94.6 billion (*US$2.9 billion), net income NT$1.7 billion (US$51 million), and basic EPS NT$0.19 per common share (US$0.06 per ADS unit).

Fourth Quarter Results

AUO reported the following unaudited consolidated results for the fourth quarter:

Revenues up 32.7% QoQ to NT$94.6 billion
Net income of NT$1.7 billion
Earnings per share (basic EPS) of $0.19 per common share (US$0.06 per ADS)
Gross margin of 8.1%
Operating margin of 3.0%

The 4Q2006 panel shipments of large-sized panels were in accordance with the Company’s guidance revised on December 7, 2006, and both broke the historical records. Shipments of large-sized panels increased 31.7% to 16.6 million from 3Q, and reached a remarkable YoY growth of 72.9% . In the mean time, shipments of small- to medium-sized panels amounted to 24.5 million with a 17.7% increase from 3Q, up 54.1% from a year earlier.

Full Year Results

For the full year of 2006, consolidated revenue reached NT$293.1 billion (US$9.0 billion), net income NT$9.1 billion (US$279 million), and basic EPS NT$1.41 per common share (US$0.43 per ADS). The large-sized panel shipment grew a 59.1% YoY to 48.8 million units; while the small- to medium- sized panel shipment posted a 46.6% YoY increase to 79.2 million units.

“After the completion of merger with Quanta Display Inc. (QDI), the loss of QDI for the previous two quarters of 2006 has been turned around through the better product integration and cost structure, even though we amended the rate of fab loading in 4Q because of an early sign of controlling year end inventory from some of our customers,” said Mr. Max Cheng, Vice President and Chief Financial Officer of AUO. “Additionally, we posted little profit gain and maintained a stable EBITDA margin for the fourth quarter and reached the gross margin of 8.1% and operating margin of 3.0%, which is able to

show our determination to increase profitability through merger synergies.”

*Amounts converted by an exchange rate of NTD32.59:USD1 as of December 31, 2006.

# # #

ABOUT AU OPTRONICS

AU Optronics Corp. (“AUO”) is one of the top three largest manufacturers* of large-size thin film transistor liquid crystal display panels (“TFT-LCD”), with approximately 20.7%* of global market share with revenues of NT$293.1billion (US$9.0bn)* in 2006. TFT-LCD technology is currently the most widely used flat panel display technology. Targeted for 40”+ sized LCD TV panels, AUO’s new generation (7.5 -generation) fabrication facility production started mass production in the fourth quarter of 2006. The Company currently operates one 7.5 -generation, two 6th-generation, four 5th-generation, one 4th-generation, and four 3.5 -generation TFT- LCD fabs, in addition to eight module assembly facilities and the AUO Technology Center specializes in new technology platform and new product development. AUO is one of few top-tier TFT-LCD manufacturers capable of offering a wide range of small- to large- size (1.5”-46”) TFT-LCD panels, which enables it to offer a broad and diversified product portfolio.

*As shown on DisplaySearch Quarterly Large-Area TFT-LCD Shipment Report dated November 2, 2006. (AUO market share = pre-merger AUO market share + QDI market share) This data is used as reference only and AUO does not make any endorsement or representation in connection therewith. 2006 year end revenue converted by an exchange rate of NTD32.59:USD1.

Safe Harbour Notice

AU Optronics Corp. (“AUO” or the “Company”) (TAIEX: 2409; NYSE: AUO), the world’s third largest manufacturer of large-size 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 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 June 1st, 2006.

FOR MORE INFORMATION

Yawen Hsiao
Corporate Communications Dept.
AU Optronics Corp.
No.1, Li-Hsin Road 2, Science-Based Industrial Park,
Hsinchu City, 300, Taiwan, R.O.C.
Tel: +886-3-5008899 ext 3211
Fax: +886-3-5772730 Email:yawen.hsiao@auo.com

Item 2



AU Optronics Corp.
Fourth Quarter 2006 Results
Investor Conference

2006

February 8, 2007




                                                                             AUO

Safe Harbor Notice

The statements included in this presentation that are not historical in nature are "forward-looking
statements" within the meaning of Section 27A of the United States Securities Act of 1933 and
Section 21E of the United States Securities Exchange Act of 1934. These forward-looking statements,
which may include statements regarding AU Optronics' future results of operations, financial
condition or business prospects, are subject to significant risks and uncertainties and are based on
AU Optronics' current expectations.

Actual results may differ materially from those expressed or imp lied in these forward-looking
statements for a variety of reasons, including, among other things: the cyclical nature of our industry;
our dependence on introducing new products on a timely basis; our dependence on growth in the
demand for our products; our ability to compete effectively; our ability to successfully expand our
capacity; our dependence on key personnel; general economic and political conditions, including
those related to the TFT-LCD industry; possible disruptions in commercial activities caused by
natural and human-induced disasters, including terrorist activity and armed conflict; and fluctuations
in foreign currency exchange rates.

In addition, any financial information contained herewithin is presented in conformity with accounting
principles generally accepted in the Republic of China ("ROC GAAP"). Readers should be cautioned
that these accounting principles differ in many material respects from accounting principles generally
accepted in the United States of America ("US GAAP").

Our release of financial forecasts and forward-looking statements at any particular time does not
create any duty of disclosure beyond that which is imposed by law, and we expressly disclaim any
obligation to publicly update or revise any forecasts or forward-looking statements, whether as a
result of new information, future events or otherwise.

Additional information as to these and other factors that may cause actual results to differ materially
from AU Optronics' forward-looking statements or some of the major differences between ROC GAAP
and US GAAP can be found in AU Optronics' Annual Report on Form 20-F with respect to the year
ended December 31, 2005 filed with the United States Securities and Exchange Commission.

                                       2



                                                                                                  AUO
                                           Consolidated Income Statement

Amount: NT$ Million Except Per Share Data

                                     4Q06(a)              3Q06           Q0Q%              4Q'05
                                ---------------    ----------------     ------      ------------------
Net Sales                        94,646   100.0%    71,313    100.0%      32.7%      72,799     100.0%
Cost of Goods Sold              (87,000)  (91.9%)  (65,375)   (91.7%)     33.1%     (56,616)    (77.8%)
Gross Profit                      7,646     8.1%     5,938      8.3%      28.8%      16,184      22.2%
Operating Expenses               (4,819)  (5.1%)    (3,862)    (5.4%)     24.8%      (3,693)     (5.1%)
Operating Income                  2,827     3.0%     2,075      2.9%      36.2%      12,490      17.2%
Net Non-operating Expenses         (914)   (1.0%)   (1,364)    (1.9%)    (33.0%)       (554)     (0.8%)
Income before Tax                 1,913     2.0%       711      1.0%     169.0%      11,936      16.4%
Net Income                        1,659     1.8%       613      0.9%     170.7%      11,465      15.7%
Basic EPS (NT$)(b)                 0.19               0.10                              -        2.02
------------------------------------------------------------------------------------------------------
Operating Income + D&A           21,830    23.1%    13,871     19.5%      57.4%      22,791      31.3%
------------------------------------------------------------------------------------------------------
Unit Shipments (MN)(c)
Large Size Panels                  16.6               12.6                31.7%                   9.6
Small & Medium Size Panels         24.5               20.8                17.7%                  15.9
-----------------------------------------------------------------------------------------------------
- Unaudited, prepared by AU Optronics Corp. on a consolidated basis

(a)  AUO completed its merger with QDI on October 1, 2006.
(b)  Basic EPS were calculated based on total weighted average outstanding
     shares of 6,467 million shares , 6,094 million shares and 5,639 million
     shares respectively for 4Q'06, 3Q'06 and 4Q’05, including retroactive
     adjustment of stock dividend and stock bonus
(c)  Large size refers to panels that are 10 inches and above


                                       3



                                                                             AUO
                         Consolidated Income Statement
                               - Pro-forma Basis

Amount: NT$ Million
                                       AUO             AUO+QDI
                                       Q'06             3Q'06             QoQ %
                                ----------------   -----------------     ------
Net Sales                        94,646   100.0%    86,742    100.0%       9.1%
Cost of Goods Sold              (87,000)  (91.9%)  (86,037)   (99.2%)      1.1%
Gross Profit                      7,646     8.1%       706      0.8%     983.7%
Operating Expenses               (4,819)   (5.1%)   (4,637)    (5.3%)      3.9%
Operating Income (Loss)           2,827     3.0%    (3,931)    (4.5%)        -
Net Non-operating Expenses         (914)   (1.0%)   (1,730)    (2.0%)    (47.2%)
Income (Loss) before Tax          1,913     2.0%    (5,662)    (6.5%)        -
Net Income (Loss)                 1,659     1.8%    (5,760)    (6.6%)        -
--------------------------------------------------------------------------------
Operating Income + D&A           21,830    23.1%    13,640     15.7%      60.0%
--------------------------------------------------------------------------------
Unit Shipments (MN)(b)
Large Size Panels                  16.6               16.2                 2.5%
Small & Medium Size Panels         24.5               20.8                17.5%
--------------------------------------------------------------------------------

- Unaudited, prepared by AU Optronics Corp. on a consolidated basis

(a) AUO completed its merger with QDI on October 1, 2006.
(b) Large size refers to panels that are 10 inches and above

                                       4



                                                                             AUO
                         Consolidated Income Statement

Amount: NT$ Million Except Per Share Data

Data
YoY %
                                   FY 2006(a)           FY 2005            YoY %
                                ----------------   -----------------     -------
Net Sales                       293,107   100.0%   217,388    100.0%      34.8%
Gross Profit                     29,850    10.2%    29,848     13.7%       0.0%
Operating Income                 14,216     4.9%    16,989      7.8%     (16.3%)
Income before Tax                10,200     3.5%    16,095      7.4%     (36.6%)
Net Income                        9,103     3.1%    15,627      7.2%     (41.7%)
Basic EPS (NT$)(b)                 1.41    2.77      (49.2%)
--------------------------------------------------------------------------------
Operating Income+D&A             66,977    22.9%    51,482     23.7%      30.1%
ROE                                 5.1%              10.9%               (53.4%)
--------------------------------------------------------------------------------
Unit Shipment (MN)(c)
Large Size Panels                  48.8               30.7                59.1%
Small & Medium Size Panels         79.2               54.0                46.6%
--------------------------------------------------------------------------------
- Unaudited, prepared by AU Optronics Corp. on a consolidated basis

(a)  AUO completed its merger with QDI on October 1, 2006.
(b)  Basic EPS were calculated based on total weighted average outstanding
     shares of 6,467 million shares and 5,639 million shares respectively for
     2006 and 2005.
(c)  Large size refers to panels that are 10 inches and above


                                       5



                                                                             AUO
                     Consolidated Balance Sheet Highlights

Amount: NT$ Million

                                4Q'06(a)       3Q'06       QoQ %           4Q'05
                               --------      -------      ------       ---------
Cash & ST Investment             45,774       29,292        56.3%        27,850
Inventory                        42,444       28,168        50.7%        19,167
Short Term Debt(b)               45,619       14,928       205.6%         9,833
Long Term Debt                  179,389      116,223        54.3%        83,940
Equity                          231,078      161,460        43.1%       155,819
Total Assets                    578,256      379,646        52.3%       329,796
--------------------------------------------------------------------------------
Inventory Turnover (Days)(c)         44                       38             28
Debt to Equity                     97.4%                    81.2%          60.2%
Net Debt to Equity                 78.4%                    64.2%          43.3%
--------------------------------------------------------------------------------
- Unaudited, prepared by AU Optronics Corp. on a consolidated basis

(a) AUO completed its merger with QDI on October 1, 2006.
(b) Short term debt refers to all interest bearing debt maturing within one year
(c) Annualized, calculated by dividing the average inventory into the cost of
    goods sold during such period, then multiplying by 365 days


                                       6



                                                                             AUO
                       Consolidated Cash Flow Highlights

Amount: NT$ Million

                                4Q'06(a)       3Q'06         QoQ       FY2006(a)
                                --------     -------     -------       ---------
From Operating Activities        29,507       10,312      15,237         68,585
Net Profit                        1,651          612       1,162          9,093
Depreciation & Amortization      19,002       11,795       7,193         52,761
--------------------------------------------------------------------------------
From Investing Activities       (10,080)     (29,307)     22,818        (83,189)
Capital Expenditure             (22,944)     (21,481)     (1,402)       (87,235)
Cash proceeds from QDI
  acquisition                    14,473            0      14,473         14,473
--------------------------------------------------------------------------------
From Financing Activities        (2,991)      26,673     (29,291)        32,312
Net Change in Debt               (2,979)      28,790     (31,396)        34,323

- Unaudited, prepared by AU Optronics Corp. on a consolidated basis

(a) AUO completed its merger with QDI on October 1, 2006.


                                       7



                                                                             AUO
                     Consolidated Revenues by Application


- Unaudited, prepared by AU Optronics Corp. on a consolidated basis


                                       8



                                                                             AUO
                                Capacity by Fab

                          Substrate               12/2006           3/2007 (F)
Fab                       Size (mm)             Capacity (a)       Capacity (a)
--------------------------------------------------------------------------------
L3A (G3.5)                610 x 720               40,000              40,000
--------------------------------------------------------------------------------
L3B (G3.5)                610 x 720               20,000 LTPS         20,000 LTPS
--------------------------------------------------------------------------------
L3C (G3.5)                600 x 720               60,000              60,000
L3D (G3.5)                620 x 750               50,000              35,000(b)
--------------------------------------------------------------------------------
L4A (G4.0)                680 x 880               60,000              60,000
--------------------------------------------------------------------------------
L5A (G5.0)               1100 x 1250              50,000              50,000
--------------------------------------------------------------------------------
L5B (G5.0)               1100 x 1300              70,000              70,000
--------------------------------------------------------------------------------
L5C (G5.0)               1100 x 1300             120,000             120,000
--------------------------------------------------------------------------------
L5D (G5.0)               1100 x 1300              70,000              70,000
--------------------------------------------------------------------------------
L6A (G6.0)               1500 x 1850             120,000             120,000
--------------------------------------------------------------------------------
L6B (G6.0)               1500 x 1850              60,000              60,000
--------------------------------------------------------------------------------
L7A (G7.5)               1950 x 2250              10,000              20,000
--------------------------------------------------------------------------------

(a) Capacity based on monthly glass substrate input
(b) Commencing conversion to LTPS


                                      12


                                                                             AUO

                                  www.auo.com
                                  ir@auo.com


                                      13

AU OPTRONICS CORP.
CONSOLIDATED BALANCE SHEETS
December 31, 2006 and 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) )

	December 31, 2006							December 31, 2005				YoY

ASSETS	USD		NTD			%		NTD		%		Change		%

Cash and Cash Equivalents	1,348		43,926			7.6		26,263		8.0		17,662		67.3
Available-for-sale Financial Assets - Current	57		1,849			0.3		1,587		0.5		262		16.5
Notes & Accounts Receivable	1,775		57,831			10.0		42,615		12.9		15,216		35.7
Inventories	1,302		42,444			7.3		19,167		5.8		23,277		121.4
Other Current Financial Assets	34		1,111			0.2		1,114		0.3		( 4	)	(0.3	)
Other Current Assets	177		5,766			1.0		5,094		1.5		672		13.2

Total Current Assets	4,692		152,927			26.4		95,841		29.1		57,086		59.6


Long-term Investments	380		12,397			2.1		5,318		1.6		7,080		133.1

Fixed Assets	16,056		523,252			90.5		314,056		95.2		209,195		66.6
Less Accumulated Depreciation	( 4,348	)	( 141,701	)		(24.5	)	( 92,929	)	(28.2	)	( 48,771	)	52.5

Net Fixed Assets	11,708		381,551			66.0		221,127		67.0		160,424		72.5

Other Assets	963		31,381			5.4		7,511		2.3		23,870		317.8

Total Assets	17,743		578,256			100.0		329,796		100.0		248,459		75.3


LIABILITIES

Short-term Borrowings	114		3,729			0.6		0		-		3,729		-
Accounts Payable	2,343		76,363			13.2		50,519		15.3		25,843		51.2
Current Installments of Long-term Borrowings	1,285		41,890			7.2		9,833		3.0		32,057		326.0
Other Current Liabilities	1,395		45,463			7.9		29,506		8.9		15,957		54.1

Total Current Liabilities	5,138		167,445			29.0		89,858		27.2		77,587		86.3

Long-term Borrowings	4,659		151,829			26.3		71,940		21.8		79,888		111.0
Bonds Payable	846		27,560			4.8		12,000		3.6		15,560		129.7
Other Long-term Liabilities	11		344			0.1		178		0.1		166		92.9

Total Liabilities	10,653		347,178			60.0		173,977		52.8		173,201		99.6

SHAREHOLDERS' EQUITY

Common Stock	2,324		75,734			13.1		58,305		17.7		17,429		29.9
Capital Surplus	3,396		110,680			19.1		57,664		17.5		53,015		91.9
Retained Earnings	1,350		43,992			7.6		39,673		12.0		4,318		10.9
Cumulative Translation Adjustments	9		306			0.1		59		0.0		247		416.5
Treasury Stock	( 0	)	( 4	)	-	0.0		0		-		( 4	)	-
Unrealized Gain/Loss on Financial Products	1		28			0.0		0		-		28		-
Minority Interest	10		342			0.1		117		0.0		225		191.6

Total Shareholders' Equity	7,090		231,078			40.0		155,819		47.2		75,258		48.3

Total Liabilities & Shareholders' Equity	17,743		578,256			100.0		329,796		100.0		248,459		75.3

Note:

(1) Unaudited, prepared by AU Optronics Corp. based on ROC GAAP
(2) Amounts in New Taiwan Dollars were translated into US Dollars at the exchange rate of NTD 32.59 per USD as of December 31, 2006

AU OPTRONICS CORP.
CONSOLIDATED INCOME STATEMENTS
For the Three Months Ended December 31, September 30, 2006 and December 31, 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) except for per share amounts and shares outstanding)

	Year over Year Comparison										Sequential Comparison

	4Q 2006				% of		4Q 2005		YoY		4Q 2006				% of		3Q 2006		QoQ
	USD		NTD		Sales		NTD		Chg %		USD		NTD		Sales		NTD		Chg %

Net Sales	2,904		94,646		100.0		72,799		30.0		2,904		94,646		100.0		71,313		32.7
Cost of Goods Sold	2,670		87,000		91.9		56,616		53.7		2,670		87,000		91.9		65,375		33.1

Gross Profit	235		7,646		8.1		16,184		(52.8	)	235		7,646		8.1		5,938		28.8

Operating Expenses
SG&A	112		3,651		3.9		2,555		42.9		112		3,651		3.9		2,745		33.0
R&D	36		1,168		1.2		1,138		2.6		36		1,168		1.2		1,117		4.6

	148		4,819		5.1		3,693		30.5		148		4,819		5.1		3,862		24.8

Operating Income	87		2,827		3.0		12,490		(77.4	)	87		2,827		3.0		2,075		36.2

Net Non-Operating Income (Expenses)	( 28	)	( 914	)	(1.0	)	( 554	)	64.9		( 28	)	( 914	)	(1.0	)	( 1,364	)	(33.0	)

Income before Income Tax	59		1,913		2.0		11,936		(84.0	)	59		1,913		2.0		711		169.0

Income Tax Benefit (Expense)	( 8	)	( 263	)	(0.3	)	( 473	)	(44.5	)	( 8	)	( 263	)	(0.3	)	( 99	)	165.5

Minority Interest in Net Loss (Income)	0		8		0.0		2		277.7		0		8		-		0		1,687.7

Net Income	51		1,659		1.8		11,465		(85.5	)	51		1,659		1.8		613		170.7

Basic Earnings Per Share	0.01		0.19				2.02				0.01		0.19				0.10

Basic Earnings Per ADS⁽³⁾	0.06		1.86				20.25				0.06		1.86				1.01

Weighted Average Number			6,467				5,639						6,467				6,094

of Shares Outstanding (Million)

Note:

(1) Unaudited, prepared by AU Optronics Corp. based on ROC GAAP
(2) Amounts in New Taiwan Dollars were translated into US Dollars at the exchange rate of NTD 32.59 per USD as of December 31, 2006
(3) 1 ADR equals 10 common shares

AU OPTRONICS CORP.
CONSOLIDATED INCOME STATEMENTS
For the Year Ended December 31, 2006 and 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) except for per share amounts and shares outstanding)

	Year over Year Comparison

	2006				% of		2005		YoY
	USD		NTD		Sales		NTD		Chg %

Net Sales	8,994		293,107		100.0		217,388		34.8
Cost of Goods Sold	8,078		263,256		89.8		187,540		40.4

Gross Profit	916		29,850		10.2		29,848		0.0

Operating Expenses
SG&A	334		10,871		3.7		7,977		36.3
R&D	146		4,763		1.6		4,882		(2.4	)

	480		15,634		5.3		12,859		21.6

Operating Income	436		14,216		4.9		16,989		(16.3	)

Net Non-Operating Income (Expenses)	( 123	)	( 4,016	)	(1.4	)	( 894	)	349.2

Income before Income Tax	313		10,200		3.5		16,095		(36.6	)

Income Tax Benefit (Expense)	( 33	)	( 1,068	)	(0.4	)	( 473	)	125.7

Changes in Accounting Principles	( 1	)	( 39	)	(0.0	)	0		-

Minority Interest in Net Loss (Income)	( 0	)	( 10	)	(0.0	)	( 6	)	72.2

Net Income	279		9,103		3.1		15,627		(41.7	)

Basic Earnings Per Share	0.04		1.41				2.77

Basic Earnings Per ADS⁽³⁾	0.43		14.08				27.71

Weighted Average Number			6,467				5,639

of Shares Outstanding (Million)

Note:

AU OPTRONICS CORP.
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Years Ended December 31, 2006 and 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD))

	2006				2005

	USD		NTD		NTD

Cash Flows from Operating Activities:
Net Income	279		9,093		15,621
Depreciation & Amortization	1,619		52,761		34,493
Provision for Inventory Devaluation	6		205		613
Investment Loss under Equity Method	52		1,702		589
Disposal Gain on Long-term Investments	( 1	)	( 25	)	( 121	)
Changes in Working Capital & Others	149		4,849		( 3,189	)

Net Cash Provided by Operating Activities	2,104		68,585		48,006

Cash Flows from Investing Activities:
Acquisition of Property, Plant and Equipment	( 2,677	)	( 87,235	)	( 80,652	)
Proceeds from Disposal of Property, Plant and Equipment	9		280		21
Increase in Long-term Investments	( 251	)	( 8,172	)	( 266	)
Proceeds from Disposal of Long-term Investments	3		102		320
Increase in Restricted Cash in Banks	( 0	)	( 11	)	( 3	)
Increase in Deferred Assets and Intangible Assets	( 76	)	( 2,463	)	( 2,779	)
Cash Proceeds from QDI Acquisition	444		14,473		0
Decrease in Other Assets	( 5	)	( 162	)	904

Net Cash Used in Investing Activities	( 2,553	)	( 83,189	)	( 82,456	)

Cash Flows from Financing Activities:
Decrease in Short-term Borrowings	( 50	)	( 1,619	)	( 6,183	)
Increase in Long-term Borrowings	1,103		35,942		39,995
Issuance of Common Stock for Cash	0		9		15,594
Cash Dividends	( 54	)	( 1,749	)	( 5,935	)
Others	( 8	)	( 271	)	( 374	)
Net Cash Provided by Financing Activities	991		32,312		43,097

Effect of Exchange Rate Change on Cash	( 1	)	( 45	)	( 182	)

Net Increase in Cash and Cash Equivalents	542		17,662		8,466

Cash and Cash Equivalents at Beginning of Period	806		26,263		17,798

Cash and Cash Equivalents at End of Period	1,348		43,926		26,263

Note:

(1) Unaudited, prepared by AU Optronics Corp. based on ROC GAAP
(2) Amounts in New Taiwan Dollars were translated into US Dollars at the exchange rate of NTD 32.59 per USD as of December 31, 2006

AU OPTRONICS CORP.
UNCONSOLIDATED BALANCE SHEETS
December 31, 2006 and 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) )

	December 31, 2006						December 31, 2005				YoY

ASSETS	USD		NTD		%		NTD		%		Change		%

Cash and Cash Equivalents	1,259		41,042		7.4		24,667		7.7		16,374		66.4
Available-for-sale Financial Assets - Current	57		1,842		0.3		1,587		0.5		255		16.1
Notes & Accounts Receivable	1,788		58,279		10.5		42,665		13.4		15,614		36.6
Inventories	1,140		37,168		6.7		16,508		5.2		20,660		125.1
Other Current Financial Assets	31		1,017		0.2		1,075		0.3		( 58	)	(5.4	)
Other Current Assets	170		5,543		1.0		5,050		1.6		492		9.7

Total Current Assets	4,446		144,891		26.1		91,553		28.7		53,338		58.3

Long-term Investments	725		23,619		4.3		12,008		3.8		11,611		96.7

Fixed Assets	14,992		488,577		88.2		296,683		93.0		191,894		64.7
Less Accumulated Depreciation	( 4,087	)	( 133,189	)	(24.0	)	( 88,480	)	(27.7	)	( 44,710	)	50.5

Net Fixed Assets	10,905		355,388		64.1		208,203		65.3		147,185		70.7

Other Assets	928		30,229		5.5		7,137		2.2		23,092		323.5

Total Assets	17,003		554,127		100.0		318,901		100.0		235,226		73.8

LIABILITIES

Accounts Payable	2,209		72,007		13.0		47,229		14.8		24,777		52.5
Current Installments of Long-term Borrowings	1,160		37,792		6.8		8,185		2.6		29,607		361.7
Current Financial Liabilities	16		507		0.1		0		-		507		-
Other Current Liabilities	1,282		41,769		7.5		28,288		8.9		13,481		47.7

Total Current Liabilities	4,666		152,074		27.4		83,702		26.2		68,371		81.7


Long-term Borrowings	4,401		143,421		25.9		67,324		21.1		76,098		113.0
Bonds Payable	846		27,560		5.0		12,000		3.8		15,560		129.7
Other Long-term Liabilities	10		336		0.1		173		0.1		163		94.3

Total Liabilities	9,923		323,391		58.4		163,199		51.2		160,192		98.2

SHAREHOLDERS’ EQUITY

Common Stock	2,324		75,734		13.7		58,305		18.3		17,429		29.9
Capital Surplus	3,396		110,680		20.0		57,664		18.1		53,015		91.9
Retained Earnings	1,350		43,992		7.9		39,673		12.4		4,318		10.9
Cumulative Translation Adjustments	9		306		0.1		59		0.0		247		416.5
Unrealized Gain/Loss on Financial Products	1		28		0.0		0		-		28		-
Deferred Compensation Cost	( 0	)	( 4	) -	0.0		0		-		( 4	)	-

Total Shareholders’ Equity	7,080		230,736		41.6		155,702		48.8		75,033		48.2

Total Liabilities & Shareholders’ Equity	17,003		554,127		100.0		318,901		100.0		235,226		73.8

Note:

(1) Unaudited, prepared by AU Optronics Corp. based on ROC GAAP
(2) Amounts in New Taiwan Dollars were translated into US Dollars at the exchange rate of NTD 32.59 per USD as of December 31, 2006

AU OPTRONICS CORP.
UNCONSOLIDATED INCOME STATEMENTS
For the Years Ended December 31, 2006 and 2005 and the Three Months Ended December 31 and September 30, 2006
(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD) except for per share amounts and shares outstanding)

	Year over Year Comparison										Sequential Comparison

	2006				% of		2005		YoY		4Q 2006				% of		3Q 2006		QoQ
	USD		NTD		Sales		NTD		Chg %		USD		NTD		Sales		NTD		Chg %

Net Sales	8,991		293,028		100.0		217,295		34.9		2,903		94,601		100.0		71,306		32.7
Cost of Goods Sold	8,152		265,677		90.7		189,751		40.0		2,691		87,701		92.7		66,326		32.2

Gross Profit	839		27,351		9.3		27,544		(0.7	)	212		6,900		7.3		4,980		38.6

Operating Expenses
SG&A	290		9,466		3.2		6,690		41.5		98		3,182		3.4		2,402		32.5
R&D	145		4,718		1.6		4,861		(3.0	)	36		1,160		1.2		1,103		5.1

	435		14,183		4.8		11,551		22.8		133		4,342		4.6		3,505		23.9

Operating Income	404		13,168		4.5		15,993		(17.7	)	78		2,558		2.7		1,475		73.5

Net Non-Operating Income (Expenses)	(94	)	( 3,049	)	(1.0	)	107		-		(20	)	( 667	)	(0.7	)	(796	)	(16.2	)

Income before Income Tax	310		10,119		3.5		16,100		(37.2	)	58		1,891		2.0		679		178.6

Income Tax Benefit (Expense)	(30	)	( 977	)	(0.3	)	(473	)	106.3		(7	)	( 232	)	(0.2	)	(66	)	251.7
Changes in Accounting Principles	(1	)	( 39	)	(0.0	)	0		-		0		0		0.0		0		-

Net Income	279		9,103		3.1		15,627		(41.7	)	51		1,659		1.8		613		170.7

Retroactively adjusted:
Basic Earnings Per Share	0.04		1.41				2.77				0.01		0.26				0.10

Basic Earnings Per ADS⁽³⁾	0.43		14.08				27.71				0.08		2.57				1.01

Weighted Average Number
of Shares Outstanding (Million)			6,467				5,639						6,467				6,094

Note:

AU OPTRONICS CORP.
UNCONSOLIDATED STATEMENT OF CASH FLOWS
For the Years Ended December 31, 2006 and 2005
(Expressed in Millions of New Taiwan Dollars (NTD) and US Dollars (USD))

	2006				2005

	USD		NTD		NTD

Cash Flows from Operating Activities:
Net Income	279		9,103		15,627
Depreciation & Amortization	1,520		49,549		32,259
Provision for Inventory Devaluation	79		2,572		577
Investment Loss (Gain) under Equity Method	30		974		( 308	)
Disposal Gain on Long-term Investments	0		0		( 106	)
Changes in Working Capital & Others	( 36	)	( 1,171	)	( 3,479	)

Net Cash Provided by Operating Activities	1,873		61,027		44,569

Cash Flows from Investing Activities:
Acquisition of Property, Plant and Equipment	( 2,362	)	( 76,965	)	( 76,993	)
Proceeds from Disposal of Property, Plant and Equipment	1		32		403
Increase in Long-term Investments	( 351	)	( 11,423	)	( 417	)
Proceeds from Disposal of Long-term Investments	0		0		297
Increase in Restricted Cash in Banks	( 0	)	( 11	)	( 3	)
Increase in Deferred Assets and Intangible Assets	( 53	)	( 1,740	)	( 2,757	)
Cash Proceeds from QDI Acquisition	436		14,218		0
Decrease in Other Assets	2		51		882

Net Cash Used in Investing Activities	( 2,327	)	( 75,839	)	( 78,587	)

Cash Flows from Financing Activities:
Decrease in Short-term Borrowings	0		0		( 5,800	)
Increase in Long-term Borrowings	1,029		33,546		38,762
Issuance of Common Stock for Cash	0		9		15,594
Cash Dividends	( 54	)	( 1,749	)	( 5,935	)
Others	( 12	)	( 400	)	( 509	)

Net Cash Provided by Financing Activities	964		31,405		42,112
					0
Effect of Exchange Rate Change on Cash	( 7	)	( 219	)	45

Net Increase in Cash and Cash Equivalents	502		16,374		8,139

Cash and Cash Equivalents at Beginning of Period	757		24,667		16,529

Cash and Cash Equivalents at End of Period	1,259		41,042		24,667

Note:

(1) Unaudited, prepared by AU Optronics Corp. based on ROC GAAP
(2) Amounts in New Taiwan Dollars were translated into US Dollars at the exchange rate of NTD 32.59 per USD as of December 31, 2006

Item 3

News Release

AU Optronics January 2007 Sales Total at NT$28.5 Billion

Issued by: AU Optronics Corp.
Issued on: February 8, 2007

Hsinchu, Taiwan, February 8, 2007 –

AU Optronics Corp. ("AUO" or the "Company") (TAIEX: 2409; NYSE: AUO) today announced preliminary consolidated January 2007 monthly revenues of NT$28,458 million and unconsolidated revenues totaled NT$28,455 million, increasing 1.0% and 1.1% respectively from December 2006. On a year-over-year comparison, consolidated and unconsolidated revenues of January 2007 rose by 28.2% respectively.

Shipments of large-sized panels(a) used in desktop monitor, notebook PC, LCD TV and general display applications, increased 9.2% sequentially, recorded as 5.50 million units, while shipments of small- and medium-sized panels posted a 4% M-o-M decline to 6.91 million units because of seasonal demand.

(a) Large-size refers to panels that are 10 inches and above in diagonal measurement while small- and medium-size refers to those below 10 inches

Sales Report: (Unit: NT$ million)

Net Sales⁽¹⁾⁽²⁾	Consolidated⁽³⁾	Unconsolidated
January 2007	28,458	28,455
December 2006	28,190	28,150
M-o-M Growth	1.0%	1.1%
January 2006	22,200	22,200
Y-o-Y Growth	28.2%	28.2%

(1) All figures are prepared in accordance with generally accepted accounting principles in Taiwan.
(2) Monthly figures are unaudited, prepared by AU Optronics Corp.
(3) Consolidated numbers include AU Optronics Corp., AU Optronics (L) Corporation, AU Optronics (Suzhou) Corporation, AU Optronics (Shanghai) Corporation and Tech - Well (Shanghai) Display Co.

# # #

ABOUT AU OPTRONICS

AU Optronics Corp. (“AUO”) is one of the top three largest manufacturers* of large-size thin film transistor liquid crystal display panels (“TFT-LCD”), with approximately 20.7%* of global market share with revenues of NT$293.1billion (US$9.0bn)* in 2006. TFT-LCD technology is currently the most widely used flat panel display technology. Targeted for 40”+ sized LCD TV panels, AUO’s new generation (7.5 - generation) fabrication facility production started mass production in the fourth quarter of 2006. The Company currently operates one 7.5 -generation, two 6th-generation, four 5th-generation, one 4th-generation, and four 3.5 -generation TFT- LCD fabs, in addition to eight module assembly facilities and the AUO Technology Center specializes in new technology platform and new product development. AUO is one of few top-tier TFT-LCD manufacturers capable of offering a wide range of small- to large- size (1.5” - 46”) TFT-LCD panels, which enables it to offer a broad and diversified product portfolio.

FOR MORE INFORMATION