E Ink Holdings Inc (元太科技), which supplies e-paper displays for Amazon.com Inc’s Kindle e-reader series, yesterday reported a widening net loss of NT$1.01 billion (US$33.63 million) for last quarter because of slack demand for e-paper displays and LCD panels.
The quarterly net loss represented a deterioration from the first quarter’s net loss of NT$492 million and a net loss of NT$818 million in the second quarter of last year, the company’s financial statement showed. That also marked the worst quarterly loss in about four years.
Last quarter, E Ink also booked a one-time severance payment of NT$500 million for a 50 percent workforce layoff at its South Korean LCD manufacturing subsidiary Hydis Technologies Co. The number of Hydis employees has been halved to about 400 from between 800 or 900 before the personal adjustment, E Ink said.
Meanwhile, the Hsinchu-based company said it received a record high royalties fee at NT$400 million by licensing Hydis’ patents to Sharp, LG Display and other panel makers to make high-resolution LCD panels that are partly used in Apple Inc and Samsung Electronics patents.
E Ink was upbeat about this quarter’s prospects.
“Customers have put off their new product launches to the third quarter from the second quarter,” company chief financial officer Eddie Chen (陳彥松) told investors.
“There is enormous growth momentum to arrive in the third quarter. You will feel the [strength of] an upswing,” Chen said.
This quarter, revenue is expected to at least double last quarter’s NT$2.93 billion, as customers were scheduled to ship new e-readers for the holiday shopping season, Chen said.
E-paper displays made up about 70 percent of the company’s overall revenue last quarter, according to E Ink.
Gross margin would rise further from last quarter’s 7.1 percent and 5 percent in the first quarter, as the company would ship more higher-margin e-paper displays, Chen said.
To reduce the impact of tablets, E Ink is seeking new growth areas in developing new e-paper applications such as displays for digital magazines, smart watches, handset covers and luggage tags.
By the end of this year, e-paper for those new applications are expected to make up less than 5 percent of the company’s overall revenue, Chen said.
Overall e-reader shipments are expected to be flat at a range between 10 million and 15 million units, compared with last year, E Ink said.
E Ink shares fell 1.23 percent to NT$16.1 yesterday, underperforming the TAIEX, which was down 0.81 percent.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) is expected to post a 25 percent year-on-year increase in sales in the first quarter of this year to US$12.91 billion, up from US$10.31 billion a year earlier, as its production is at full capacity, market advisory firm TrendForce Corp said in a note last week. The increase would help TSMC cement its leadership in the industry by taking a 56 percent market share in the global pure wafer foundry business, TrendForce said. Its forecast was in line with TSMC’s estimate in January, which pointed to a range of US$12.7 billion to US$13 billion for the
MULTI-USE: The arrangement of seats in future vehicles would be different, allowing passengers to do everything they do at home, the CEO of the firm’s EV platform said Electric vehicles (EVs) developed on a Hon Hai Precision Industry Co (鴻海精密) platform would be built like “a smartphone on a different platform,” Jack Cheng (鄭顯聰), chief executive officer of the Hon Hai-initiated MIH Open Platform Alliance, said on Saturday. It would be the ultimate goal to make vehicles built on the platform an extension of the driver’s home, he said during an online presentation. The alliance aims to provide resources to automakers and boost Taiwan’s EV development, with a vision to make an EV its owner’s “second home,” Cheng said. “Whatever they can do in their home, they will be able
RARE POSITION: IHS Markit expects exports to increase by about 13 percent this year, as demand for electronics worldwide has recovered significantly since last year Taiwan’s economy might expand 4.1 percent this year, accelerating from a 3.11 percent pickup last year, as its exports would continue to benefit from surging demand for electronics products amid and after the COVID-19 pandemic, global research body IHS Markit said yesterday. Taiwan has been one of the world’s most resilient economies during the pandemic-triggered recession last year. Economic indicators at the beginning of this year signal improving growth momentum for its economy over the coming months, as the global economy and trade rebounds, the US-British information provider said. According to the latest IHS Markit survey of business confidence in Taiwan, the
Clean energy use and reduction of carbon dioxide emissions are the common consciousness of all countries in the world. Among them, the introduction of renewable energy storage systems and the promotion of electric vehicles are the unanimous implementation of governments and enterprises around the world. The most critical strategic component is the lithium ion battery. Whoever has a higher energy density, lower cost, and higher safety lithium battery will control the development trend of this wave of safer lithium battery technology. All-solid-state batteries are a goal that everyone is striving to pursue. However, the stable and large scale production of solid-state