Wed, Aug 01, 2012 - Page 13 News List

MediaTek eyes Q3 double-digit revenue growth

SMART MOVE:Revenue from smart TV chips fell in the second quarter in Europe, but grew in China, where a TV subsidy is likely to have a big impact soon

By George Liao  /  Staff reporter

MediaTek Inc (聯發科), the nation’s largest handset chip designer, said yesterday revenue in the third quarter of this year is projected to grow between 13 percent and 18 percent from the second quarter, following the launch of new products and strong demand for smartphone chips.

That would mean a quarterly revenue of between NT$26.50 billion (US$883.33 million) and NT$27.70 billion, compared with NT$23.44 billion in the second quarter.

The company’s net income was NT$3.36 billion in the second quarter, an increase of 34.3 percent from the previous quarter, and 0.9 percent from the same quarter last year.

Earnings per share (EPS) for the second quarter was NT$2.95, compared with NT$2.19 in the previous quarter and NT$3.05 in the same quarter of last year, according to the company’s financial data.

CHINA GROWTH

MediaTek said second-quarter revenue rose 19.5 percent sequentially and 11.7 percent from the same period last year, primarily driven by the fast-growing smartphone demand in China.

However, gross margin for the quarter was 40.8 percent, down 1.3 percent and 5.1 percentage points from the previous quarter and the same period of last year respectively. The company attributed that fall to fierce price competition in the market.

“Shipments of smartphone chips continued to be a great contributor to growth in the second quarter, representing a significant upswing from the first quarter,” MediaTek president Hsieh Ching-jiang (謝清江) said.

A total of 21 million smartphone chips were shipped in the second quarter, he said, adding that the firm expected the figure to grow to 30 million this quarter.

Total smartphone chip shipments are likely to reach 95 million units this year, of which between 50 percent and 60 percent will be 3G chips and the remainder 2G chips, he said.

SMART TV CHIPS

As for smart TV chips, Hsieh said revenue in the second quarter dropped in Europe, but grew in China, where the impact of a TV subsidy program is expected to show in the third quarter and become a driver for the company’s smart TV chip sales.

On the subject of the acquisition of local rival MStar Semiconductor Inc (晨星半導體), Hsieh said the merger would enhance MediaTek’s international competitiveness and indicated that he expected the synergy effects to take hold in the first quarter of next year, once the consolidation process is completed.

Looking forward to the third quarter, the peak hot season for chipmakers, Hsieh said he remained cautious about the economic outlook because consumers were expressing concerns over the global economy and the global semiconductor market was weaker than in previous years.

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