G-Tech Optoelectronics Corp (正達國際光電), which makes cover glass used in touch-panel displays for Apple Inc’s tablet devices and other companies, yesterday said revenues were likely to peak this quarter as major customers cut orders for next quarter ahead of product launches early next year.
G-Tech’s comments came after JPMorgan Chase & Co said in a report on Sunday that Apple was trimming iPad supply chain orders by 25 percent in the fourth quarter, meaning that iPad maker Hon Hai Precision Industry Co (鴻海精密) could ship 13 million iPad 2 units, rather than 17 million units.
Hon Hai Group (鴻海科技集團) — including Hon Hai and LCD panel maker Chimei Innolux Corp (奇美電子) — holds a 37.6 percent stake in G-Tech.
“Customers usually reduce orders in the fourth quarter, especially when they are set to launch new products,” G-Tech general manager Alex Jaing (江嘉斌) told reporters on the sidelines of an investor conference for the stock debut on Oct. 18.
The listing price has not yet been set.
“We are part of the supply chain and we will be affected, but it is hard to say now how big the impact will be,” Jaing said. “There could be a gradual decline [in revenues from the third quarter.] We are cautious about the fourth quarter.”
At the moment, G-Tech’s factory utilization is averaging 80 percent, while production lines for some popular products were still being fully utilized, Jaing said.
Thirty percent of the company’s output was shipped to Hon Hai Group, he said. European and US clients accounted for 40 percent of shipments, he said.
Third-quarter revenues were likely to break a new record, -Jaing said. In the second quarter, G-Tech’s revenues increased 41 percent quarter-on-quarter to a record high of NT$1.93 billion (US$63.3 million).
G-Tech’s net profits soared almost 70 percent last quarter to NT$316 million from NT$186 million in the first quarter, according to the company’s financial statement. It also represented a spike from net profits of NT$61 million a year ago.
G-Tech’s customers include HTC Corp (宏達電), LCD panel maker AU Optronics Corp (友達光電) and Apple’s touch module suppliers Wintek Corp (勝華) and TPK Holdings Co Ltd (宸鴻).
To support growing customer demand, G-Tech, based in Miaoli County, plans to triple its cover glass capacity to 1.8 million units a year in its Chinese factories in Shenzhen and Chengdu from 600,000 units in the second quarter.
Shares of G-Tech edged 0.35 percent lower to close at NT$93 on the Emerging Stock Market yesterday.