Wintek Corp (勝華), which supplies touch panels for Google Inc’s Nexus tablets, yesterday reported its fourth straight month of revenue growth, sending a positive message for the company’s outlook next quarter.
Revenue rose 1.14 percent month-on-month to NT$5.76 billion (US$195 million) last month from NT$5.7 billion in August, the company said in a statement.
The figure represented an annual decline of 40.74 percent from NT$9.72 billion in September last year.
However, the monthly growth rate was significantly lower than Wintek’s expectation of a “significant” increase.
“Supply constraint of high-end flat panels has curbed our growth,” Wintek spokesman Jay Huang (黃忠傑) said by telephone.
“Supply of panels for tablets and smartphones is tight,” Huang said.
Last quarter, Wintek’s revenue shrank 2.07 percent to NT$17.05 billion from the second quarter’s NT$17.41 billion. Third-quarter revenue fell short of Credit Suisse analyst Jerry Su’s (蘇厚合) expectation.
Su had predicted Wintek would grow its revenue by 16 percent sequentially from the second quarter, on new orders for Google’s Nexus tablet and Amazon.com’s new Kindle Fire.
Huang said the company is seeing an uptrend this quarter.
“The fourth quarter is likely to be better than the third quarter as clients are set to launch new tablets and notebook computers. In addition, tight supply of LCD panels is likely to ease,” Huang said.
Touch panels for notebook computers are expected to make up less than 5 percent of Wintek’s overall revenue this quarter, with most of its products to be used in smartphones and tablets, he said.
Wintek shares fell 0.41 percent to NT$12.05 yesterday, under-performing the TAIEX, which advanced 0.36 percent.
‧ Monthly revenue rose for the fourth month in a row.
‧ However, it was lower than Wintek’s expectations.
‧ It also represented an annual decline from the same month last year.
‧ The fourth quarter is expected to see an uptick in revenue, after shrinking this quarter from the last.
Source: wintek and credit suisse