BenQ Corp (
Consolidated revenues for the April-June period declined around 5 percent to NT$55.2 billion (US$1.71 billion), rather than growing more than 10 percent at a quarterly rate as the Taoyuan-based company had anticipated in April.
The firm posted NT$57.94 billion in revenue for the first three months of this year, up 80 percent from a year ago, after taking over Siemens AG's mobile unit last October.
"The revenue shortfall was also caused by delays in ramping up BenQ's newly launched handsets, which we are in the process of correcting," said Eric Yu (游克用), a senior vice president of the firm's financial division, in a statement.
BenQ underestimated the difficulty of launching products around the globe, Yu explained.
Demand for BenQ-Siemens mobile phones, however, remained solid, he said.
"Although we will be short of our quarter-on-quarter guidance, we have identified the bottlenecks and are implementing measures to solve these constraints as well as accelerating our internal restructuring effort. Our aim is to steadily raise the average selling prices," Yu said.
BenQ told investors it hoped to boost ASP 10 percent this quarter from last quarter by unveiling more top-range models.
Sales of cellphones accounted for about 35 percent of BenQ's total revenue in the first quarter of this year, during which BenQ sold 7 million handsets.
The firm aimed to sell 30 percent more handsets during the quarter ending last month.
Weak demand for computer monitors also drove down revenue, Yu said.
The second-quarter revenue, was more than two times the NT$26.7 billion it made a year ago before the merger with Siemens' debt-ridden mobile unit.
Shares in BenQ yesterday had plunged nearly 40 percent to NT$20 since the
beginning of the year.
BenQ reported losses of NT$4.99 billion, or NT$1.95 per share, for the first
quarter.
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