HannStar Display Corp (瀚宇彩晶) posted a sharp increase in net profit to NT$1.32 billion (US$44 million) for last quarter, benefiting from booming demand for smartphones and tablets.
The results were the Hsinchu-based LCD panel maker’s second successive profitable quarter after ending two years of losses in the final quarter of last year with a net profit of NT$187 million.
HannStar lost NT$730 million in the first quarter of last year.
The company yesterday attributed its growth in profit to strong consumer demand for smartphones and tablets.
HannStar has embarked on a three-year plan to transform its business into making flat panels for mobile devices. Last quarter, the company employed about 90 percent of its capacity to make panels for such devices.
The company’s balance sheet showed almost all key indicators improved significantly last quarter. Gross margin improved to 27 percent from 21 percent in the fourth quarter of last year. That was an improvement from 5 percent reported in the first quarter of last year, the firm’s financial statement showed.
The company’s earnings before income tax, depreciation and amortization (EBITDA) margin rose to 26 percent from 21 percent the previous quarter and from 10 percent a year ago. Net margin leaped to 17 percent from 2 percent in the fourth quarter and minus-9 percent in the same period of last year.
The firm’s average selling price inched up to US$58 per unit from US$57 in the previous quarter, while total shipments dropped 12.5 percent sequentially last quarter to 4.45 million from 5.14 million units in the previous quarter, company data showed.
Revenue dropped 11 percent quarter-on-quarter, or 10.8 percent year-on-year, to NT$7.57 billion in the first three months of the year, according to company statistics released earlier this year.
Shares of HannStar rallied 3.83 percent to NT$9.45 yesterday, their highest level since July 11, 2009.