Tue, Oct 08, 2013 - Page 14 News List

Merry Electronics posts record quarterly results

By Kevin Chen  /  Staff reporter

Speaker and earphone supplier Merry Electronics Co (美律) yesterday reported slightly lower sales last month from August, yet they exceeded NT$1 billion (US$34.06 million) for a second straight month, helping to push revenue last quarter to a record high.

Merry said in a filing to the Taiwan Stock Exchange that its consolidated sales were NT$1.04 billion last month, the second-highest level in the company’s history.

That represented a decrease of 2.36 percent from the record-level of NT$1.06 billion in August, but an increase of 77.34 percent from the NT$585.4 million in September last year, the company said.

For the July-to-last month period, revenue totaled NT$3.02 billion, up 36 percent from the NT$2.22 billion in the previous quarter, when the company experienced inventory adjustment by a major client, according to the company.

Merry is a leading electro-acoustic components manufacturer, with products including earphones, headsets, speakers and battery packs, with clients such as Bose, Logitech and Beats.

Analysts said the firm’s strong sales in July and August reflected the positive effects of its product-mix adjustment, such as more allocation to the sales of high power speaker and headset sales.

Merry shifted its focus to higher-margin entertainment products and speakers in late 2011 and is planning to begin shipments of new wireless charger products at the end of the year.

“After two years of effort, these [speakers and entertainment earphones] products accounted for more than 60 percent of Merry’s sales in the first half this year, compared with around 25 percent in 2011,” Daiwa Capital Markets analyst Kylie Huang (黃奎毓) said in a note yesterday.

Huang said the company is also aimed to broaden its smartphone and tablet exposure by leveraging its manufacturing experience and strong client relationships.

Yuanta Securities Corp (元大證券) analyst Wang Deng-cheng (王登城) said his recent checks with channel companies showed that Merry could see consecutive record sales this quarter on the back of its improved product portfolio.

Shares of Merry lost 0.37 percent to NT$80.7 yesterday. However, the stock has risen 99.26 percent so far this year, compared with the TAIEX’s 8.24 percent increase over the same period.

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