Machine tool manufacturer Hiwin Technologies Corp (上銀科技) posted NT$629 million (US$20.98 million) in net income and earnings per shares (EPS) of NT$2.55 for last quarter, up 13 percent from NT$559 million and EPS of NT$2.27 in the first quarter.
Revenue for last quarter was NT$3.06 billion, up 36 percent from NT$2.25 billion in the first quarter, the company said yesterday.
Gross margin and operating margin last quarter were 39 percent and 29 percent respectively, compared with 36 percent and 26 percent in the first quarter, data showed.
Company vice president Evon Lin (林翊鳳) attributed better margins to better economies of scale and better product mix. Hiwin sold 1 percent more higher-margin robots last quarter, data showed.
“We have sold industrial robots to China for the assembly of iPhones and iPads there, which presents a strong growth potential for us,” Hiwin chairman and CEO Eric Chou (卓永財) said.
On a six-month basis, Hiwin posted NT$5.31 billion in revenue and NT$1.19 billion in net income, down 17 percent and 29 percent from NT$6.42 billion in revenue and NT$1.67 billion in net income a year ago. EPS was down 29 percent to NT$4.82 from NT$6.76 a year ago.
Chou said the company had invested on enlarging production capacity for making precision parts and machines for medical equipment to pave way for future growth, including building a factory in Beijing.
Hiwin’s operating expenses for the second quarter was NT$296 million, 23 percent more than NT$241 million in the first quarter.
However, with the economic slowdown in China and debt crisis in eurozone, Hiwin is looking to Japan and the US to provide growth to make up for the decline in Taiwan and Europe, Chou said.
The strong yen will benefit Hiwin on replacing Japanese products in Japan, the US, and some nations in Europe, Lin said.
Sales in Europe and Taiwan dropped to account for 10 percent and 17 percent of the total sales for last quarter respectively, compared with from 21 percent and 23 percent in the third quarter of last year, company data showed.
Looking ahead, Chou said Hiwin hoped to have better financial performance in the second half of the year to make up lackluster performance in the first half.
He said he also expected the company to have a better first half next year than this year because of new products.