Fri, Aug 26, 2011 - Page 12 News List

Pegatron loses NT$700 million in Q2

By Jason Tan  /  Staff Reporter

Notebook contract maker Pegatron Corp (和碩) posted its second consecutive quarterly loss in the second quarter as it sacrificed profits to gain orders.

The company posted losses of NT$700 million (US$24.1 million) in the second quarter, compared with NT$600 million losses in the first three months of the year. It earned NT$1.7 billion in the second quarter of last year.

Pegatron, which assembles iPhones for Apple Inc, lost NT$0.30 per share in the second quarter.

That compares with losses per share of NT$0.25 in the first quarter and earnings per share of NT$0.74 in the second quarter last year.

“Pegatron gained iPhone orders by sacrificing margins. And its yield rate issue in assembling iPhones was yet to be sorted out,” said an analyst at Topology Research Institute (拓墣產業研究所), who asked to remain anonymous.

Revenues were NT$105 billion for the quarter ending in June, up 22 percent from the previous quarter and flat year-on-year.

Gross margins dropped to 1.6 percent in the second quarter, from 1.8 percent in the first and 4.5 percent last year.

Pegatron chief executive Jason Cheng (程建中) expected the company to see margins improve in the third quarter on better yield rates and cost control.

It aims to turn into the black in the quarter ending next month and break even for the whole year.

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