Fri, Jun 29, 2012 - Page 13 News List

Wintek conservative in outlook for rest of the year

By Lisa Wang  /  Staff reporter

Wintek Corp (勝華), one of Apple Inc’s touch-panel suppliers, yesterday published a conservative outlook for the next quarter as shipments of handset touch panels were to be capped by major clients’ product transition.

The transition period could last two or three months before next-generation products begin overtaking older products, chairman Hyley Huang (黃顯雄) told local Unique Satellite TV after the company’s annual shareholders’ meeting.

“We do not expect big growth in revenue next quarter or the quarter after,” Wintek spokesman Jay Huang (黃忠傑) said by telephone. “No seasonal growth will be expected.”

Wintek’s revenue grew 10.22 percent quarter-on-quarter to NT$28.69 billion (US$957.7 million) last quarter.

Wintek is pinning its hopes on sales of Microsoft Corp’s Windows 8 operating system to stimulate demand for touch panels used in tablets and PCs, and to offset weakness in handset panel demand, Jay Huang said.

The contribution in terms of revenue from the new tablet and PC touch panels would not be pronounced until the first quarter of next year, he said.

However, the net margin would improve at a faster pace as tablet and PC touch panels deliver a better profit margin than those for cellphones, Jay Huang said.

Wintek swung into a profit of NT$148 million last quarter, with net profit margins improving to 1.58 percent, after reporting a net loss of NT$1.9 billion last year, with a net margin of minus-1.72 percent.

Currently, touch panels for cellphones account for between 40 percent and 45 percent of the company’s total revenues.

Wintek recently began shipping its new one-glass-solution touch panels to customers including Google Inc, shrugging off the impact from speculation that Apple had chosen to equip its next-generation iPhone with a touch panel made using new in-cell technology, Hyley Huang told reporters.

“We do not have in-cell [touch panels] now. We are not worried about [not receiving new orders from Apple],” he said. “But, I believe one-glass-solution [technology] will be more cost-efficient.”

Google’s Nexus 7 tablets are using Wintek’s touch panels, Huang said. Shipments of touch panels for this model would reach 500,000 units this month, he said.

Yesterday, Wintek also displayed its brand-name LED lighting products.

Wintek’s Otali-brand LED lighting products will be available at local hypermarkets, such as home improvement outlets B&Q (特力屋), next quarter.

Wintek product manager Eva Tseng (曾怡屏) said the company was planning to enter the Chinese market by selling its products at hypermarkets and by bidding for government projects. In addition, the company also seeks to sell its Otali LED lighting in Europe, the US and Japan, she added.

Wintek shares rose for the third consecutive trading day to close at NT$15.85 yesterday.

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