Thu, May 03, 2012 - Page 12 News List

Young Fast expects sales to grow by double digits in Q2

PANEL DEMAND:The company is expanding to be able to supply 7-inch touch panels to clients selling tablets and notebooks running Microsoft’s new Windows 8 system

By Lisa Wang  /  Staff reporter

Young Fast Optical Inc (洋華), which supplies handset touch panels to HTC Corp (宏達電) and Samsung Electronics, yesterday said revenue would expand by a double-digit percentage sequentially next quarter as most customers plan to launch new products.

This quarter, revenue would grow slightly from last quarter’s NT$2.54 billion (US$87 million) because of seasonally slow demand, Young Fast chairman T. J. Lin (林德錚) told investors via a teleconference.

“Based on past seasonal patterns, [revenue] grows by a double-digit percentage [sequentially] to the peak of the year in the third quarter. We expect a similar growth pattern this year,” Lin said.

Sales of Microsoft Inc’s upcoming Windows 8 operation system would provide a catalyst to Young Fast’s operations in the second half of this year as the company is increasing supplies of 7-inch touch panels to clients who are set to sell new tablets and notebooks running the new system, Lin said.

New mid-sized touch panels mostly for tablets are expected to account for 10 to 15 percent of the company’s overall revenue this year, compared with none currently, according to Lin.

Young Fast plans to spend NT$2.5 billion on new equipment this year mostly to expand its capacity for mid-sized touch panels. The monthly capacity for mid-sized touch screens is expected to almost triple to 1 million units by the end of the year, from 35,000 units now, Lin said.

Most of Young Fast’s business comes from touch panels used in handsets, he said.

Young Fast reported a second consecutive quarterly loss for last quarter at NT$169 million on sagging demand, widening from last year’s fourth-quarter loss of NT$61 million, according to its financial statement released on Monday.

Non-operating losses of NT$86 million were a drag on the company’s already weak bottom line, while it booked non-operating income of NT$55 million in the fourth quarter of last year.

The first-quarter results reversed a net profit of NT$279 million the company made in the first quarter of last year.

Separately, Wintek Corp (勝華), which counts Apple Inc and Nokia Oyj as its customers, yesterday said revenue shrank 11.42 percent to NT$9.29 billion last month, from March’s NT$10.49 billion, according to a company statement.

On an annual basis, the figure represented 36.17 percent growth from NT$6.82 billion in April last year.

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