Thu, Jul 05, 2012 - Page 14 News List

TPK Holding’s revenue falls 10.13%

By Kevin Chen  /  Staff reporter

Touch-panel maker TPK Holding Co (宸鴻) yesterday said its consolidated revenue fell 10.13 percent to NT$11.076 billion (US$371.5 million) last month from May, and the figures represented a decline of 3.87 percent from the same period last year, according to a company statement.

TPK, a major supplier of touch modules for Apple Inc’s iPhone smartphones and iPad tablet computers, did not elaborate on its declining revenue for last month in the statement, nor provide sales guidance for this month.

In the April-to-June quarter, TPK’s accumulated revenue totaled NT$35.26 billion, down 12.84 percent from the previous three months, but up 6.71 percent from a year earlier, the company’s data showed.

TPK chief financial officer Freddie Liu (劉詩亮) told an investors’ conference on April 25 that the company expected a sequential decline of 10 percent in second--quarter revenue, citing weaker demand from end markets that might drag down its major client’s shipments.

TPK president David Sun (孫大明) said the company was looking to diversify its customer base to reduce reliance on a single client, as market watchers become concerned that Apple’s possible adoption of an in-cell touch panel for its “iPhone 5” could erode TPK’s business.

Apple contributed about 76 percent of the company’s revenue of NT$40.45 billion in the first quarter of the year. TPK said in May it planned to increase its customer base from 30 to 40 companies to reduce risk.

Looking ahead, TPK is expected to focus on new tablet devices and notebooks, Credit Suisse said last week.

“Its second-half revenue and profit on the potential iPhone 5 business loss will be filled up by the non-Apple new product launches,” Credit Suisse said in a note.

Separately, local electronics retailer Synnex Corp (聯強國際) yesterday said revenue rose 1.17 percent to NT$26 billion last month from a year ago, led by an annual increase of 13 percent in consumer electronics sales and a rise of 11 percent in information technology sales.

Information technology sales were NT$14.4 billion last month, up from NT$13 billion in the previous year, while those of consumer electronics expanded to NT$3 billion from NT$2.7 billion a year ago, according to a company statement.

Overall, Synnex saw its -second-quarter revenue rise 2 percent year-on-year to NT$73.9 billion, while accumulated sales in the first half were flat at NT$147 billion, the statement said.

Additional reporting by Amy Su

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