In contrast, bigger rival Novatek Microelectronics Corp (聯詠) has managed to build itself to be the leading player amid intense competition.
Last quarter, the company saw its revenue beat earlier guidance and market expectation, which analysts attributed to restocking demand ahead of the Lunar New Year holiday.
Consolidated sales rose 0.4 percent quarter-on-quarter, but were down 0.9 percent year-on-year to NT$10.62 billion last quarter, better than the company’s guidance made in October, when Novatek predicted revenue to decline by a sequential rate of between 4 percent and 8 percent to between NT$9.7 billion and NT$10.1 billion.
“The strong fourth-quarter revenue is due to leading resolution technology in HD720 and better-than-expected large-size display driver IC demand,” Macquarie Capital Securities Ltd said last week in a client note.
For this quarter, Novatek’s revenue could be better than its high single-digit sequential decline over the past few years due to continued resolution migration and higher TV panel driver IC shipments, the brokerage said.
With smartphone display migrating to high-definition technology with vertical resolution of 720 pixels, together with increasing penetration of ultra-high-definition, or 4K2K, TVs among consumers and the company’s continued technological leadership, SinoPac Securities Investment Service Co (永豐投顧) analyst Martina Huang (黃瑞君) forecast Novatek’s revenue for this year to grow 10.33 percent from NT$41.45 billion last year.
Net profit is estimated to increase 14.95 percent to NT$5.55 billion, or NT$9.14 per share, this year from last year’s NT$4.83 billion, or NT$7.95 a share, Huang said in a note on Tuesday last week.