MediaTek Inc (
Net income jumped 16 percent to NT$6.5 billion (US$195.6 million), in the quarter ending on Sept. 30, compared to NT$5.96 billion earned a year ago in the same period. Gross margin jumped 2.1 percent to 57.8 percent last quarter from 55.7 a year ago, the company said.
"The results beat most analysts' estimates but are slightly lower than my expectations," said Eric Chen (
Revenue expanded 25 percent quarter on quarter, rather than the 26 percent projected by Chen.
Improvement in MediaTek's handset business boosted the third-quarter gross margin and therefore the overall profits, he said.
The Hsinchu-based chipmaker started to diversify into the handset chip business several years ago. The new business accounted for about 40 percent of MediaTek's total revenue of NT$15.05 billion last quarter, according to Chen's forecast.
MediaTek is expected to give its outlook for the current quarter during an investor's conference tomorrow.
As the growth momentum is ex-pected to carry into the current quarter on seasonal demand, Chen said he expected MediaTek to say revenue would grow another 5 percent from last quarter and that the historical high gross margin would be sustained.
Based on that, earnings per share would rise further to NT$6.74 this quarter, bringing the overall earnings per share to NT$23.15 for this year, Chen said.
MediaTek earned NT$21.31 a share last year.
Chen said last month that he had retained his "buy" call on MediaTek in expectation of gaining more share in the world's handset chip market.
The target price is also unchanged at NT$388, implying around 20 percent upside from MediaTek's closing price of NT$324 yesterday on the main bourse.
MediaTek said in August it planned to supply new handset chips to certain European telecom operators, and new chips for phones enabling 2.75-generation technologies to new customers last quarter.
In addition, the company also said it planned to begin shipping its first chips for fixed wireless phones in the third quarter.
NO VIRUS BLUES: A SEMI Taiwan official said that the virus does not slow down the global semiconductor industry’s investment in manufacturing equipment The production value of the nation’s semiconductor industry is expected to grow 16.7 percent this year from last year, outpacing the global industry’s 3.3 percent growth, industry association SEMI said yesterday. That would help Taiwan safeguard its second spot in the global semiconductor market with a production value of more than NT$3 trillion (US$102.73 billion), SEMI Taiwan president Terry Tsao (曹世綸) told a media briefing in Taipei for the Semicon Taiwan trade show beginning today. The global semiconductor industry’s production value is expected to increase to US$426 billion this year, SEMI said. In terms of semiconductor equipment investment, equipment billings from Taiwanese firms
Intel Corp has received licenses from US authorities to continue supplying certain products to Huawei Technologies Co (華為), a company spokesman said yesterday. Washington has been pushing governments around to world to squeeze out Huawei, saying that the telecom giant would hand data to Beijing for espionage. From Monday last week, new curbs have barred US companies from supplying or servicing Huawei. This week, the state-backed China Securities Journal reported that Intel had received permission to supply Huawei. China’s Semiconductor Manufacturing International Corp (SMIC, 中芯國際), which uses US-origin equipment to make chips for Huawei and other companies, last week confirmed that it had sought
Taipei Times: When do you think the hospitality industry can return to how it was before the COVID-19 pandemic? How does Formosa International Hotels Group (FIH, 晶華酒店集團) fare this quarter and beyond? FIH chairman Steve Pan (潘思亮): The virus outbreak will have a serious impact on business travel, driven mainly by meetings, incentive travel, conferences and exhibitions over the past three decades. For the past six months, many businesspeople have grown used to exchanging information on the Internet, where more people can participate. The trend might sustain for three to five years until people are vaccinated and it is safe to
DIGITAL COMMERCE: In 2016, only 2 percent of orders were delivered in Taiwan, but that has risen to 10 percent, Foodpanda Taiwan Co operations director Nick Yu said Online food delivery platforms have seen explosive growth in Taiwan this year, helped by business opportunities related to the COVID-19 pandemic, company executives said at a digital commerce conference in Taipei yesterday. When the threat of COVID-19 kept people from going out to eat, more people experimented with ordering food deliveries online, Foodpanda Taiwan Co Ltd (富胖達) operations director Nick Yu (余岳勳) said. Foodpanda started operations in Taiwan in 2012. “We experienced 5,000 percent growth in the past 24 months,” Yu said. “That’s more than the previous six years combined.” In 2016, only 2 percent of food orders were delivered in Taiwan, but that