Young Fast Optical Co (洋華光電), a manufacturer of small to medium-sized touch panel sensor products, maintained its conservative forecast for sales in the second quarter, mainly due to flat demand for its medium-sized products, a company official said yesterday.
However, rebounding demand for medium-sized products in the second half of this year may drive up the the company’s sales momentum, in line with the pattern shown last year, Young Fast chairman Lin Teh-jeng (林德錚) said.
The remarks come after Young Fast posted net income of NT$177 million (US$5.92 million), or NT$1.17 per share, in the first quarter — the firm’s third straight profitable quarter.
Last quarter’s figure compares with net profit of NT$173 million in the previous quarter and a net loss of NT$169 million in the same period last year.
Lin attributed the first-quarter results to an improved product mix, with medium-sized and smaller products each accounting for half of all the company’s sales.
Meanwhile, the NT$103 million of non-operating earnings recorded in the first three months — mainly from foreign exchange gains — helped maintain the company’s profitability, even as sales dropped 34.1 percent quarter-on-quarter to NT$2.85 billion during the period.
Gross margin stood at 13.3 percent in the first three months, down from 14.4 percent in the previous three months, but up from the 7.3 percent during the same period last year, the company said in statement.
Young Fast may see revenue decline in the second quarter on slow demand for medium-sized products, which are widely used in tablet PC devices and notebook computers, Lin said.
However, Lin said he expects demand momentum for the firm’s medium-sized products to rise starting in the third quarter, with sales following a rising trend as customers launch new products.
The recovering demand for medium-sized products is expected to boost the company’s sales in the second half of this year, with demand for smaller products — mainly used in smartphones — keeping steady, he added.
Shares of Young Fast dropped 1.12 percent to close at NT$53.1 yesterday.