IC chip designer MediaTek Inc (聯發科) yesterday said it failed to meet its revenue forecast for the fourth quarter of last year because of weak global demand.
Consolidated sales in the fourth quarter reached NT$22.62 billion (US$748 million), down 3.3 percent from the third quarter and lower than its revenue target of between NT$22.9 billion and NT$24.5 billion.
Sales of chips used in mobile phones, which account for about 70 percent of the company’s revenue, and chips used in TVs, which make up 10 to 15 percent of sales, were both lower than it had expected, MediaTek said.
Last month alone, MediaTek’s consolidated sales fell 2.19 percent from a month earlier to NT$7.46 billion.
Because of the lower sales, MediaTek expected its fourth-quarter gross margin to fall to between 42 and 44 percent, from the 44.3 percent recorded in the third quarter.
For the full year, consolidated sales last year declined 23.48 percent to NT$86.82 billion — the lowest in four years.
The IC designer said sales in the first quarter of this year were likely to fall further as production at its Chinese customers — its biggest mobile chip buyers — was expected to be interrupted by a prolonged holiday for the Lunar New Year.