Tue, Mar 04, 2014 - Page 14 News List

Panel firm Wintek posts 5 percent sales decline

By Kevin Chen  /  Staff reporter

Wintek Corp (勝華), which supplies touch panels for use in Xiaomi Corp (小米) smartphones and tablets from Amazon Inc and Google Inc, said yesterday that its consolidated sales topped out at NT$4.79 billion (US$157.6 million) last month, down 4.43 percent from the previous month’s NT$5.01 billion.

Last month’s figure was also 5.03 percent lower than the NT$5.04 billion reported for the same period of last year, the Greater Taichung-based company said in a filing to the Taiwan Stock Exchange.

Analysts attributed the decline to negative factors such as the seasonally slow demand for smartphones and tablets, fewer working days because of the Lunar New Year holiday and demand for touchscreen notebook computers that remains weak.

YEAR-ON-YEAR

In the first two months of this year, the company’s revenues totaled NT$9.79 billion, representing a 20.96 percent decline from the NT$12.39 billion recorded for the same period last year, Wintek said in the stock exchange filing.

Wintek reported a better-than-expected consolidated sales amount of NT$23.29 billion for last quarter, an increase of 37 percent quarter-on-quarter and 2 percent year-on-year, as Xiaomi smartphones have quickly risen to become one of the major revenue drivers for the company.

POTENTIAL CONTRACTION

However, analysts said Wintek’s sales for the current quarter might contract by between 17 percent and 23 percent from last quarter against a lackluster seasonal demand and rising competition for Xiaomi smartphone orders.

Wintek shares fell 1.19 percent at NT$9.98 yesterday in Taipei trading. They have fallen 4.04 percent since the beginning of the year, compared with the broader market’s 0.11 percent decline, the Taiwan Stock Exchange’s data showed.

One-glass-solution panels used mostly in PCs account for more than 70 percent of Wintek’s total shipments, company spokesman Jay Huang (黃傑洲) said last month.

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