Sat, Mar 08, 2014 - Page 14 News List

Merry misses analysts’ expectations

By Kevin Chen  /  Staff reporter

Speaker and earphone supplier Merry Electronics Co (美律) on Thursday reported a 34.22 percent monthly decline in sales for last month due to fewer working days, in results that were weaker than market expectations.

Consolidated revenue was NT$644.07 million (US$21.31 million) last month, down from NT$979.1 million in January, but up 13.86 percent from NT$565.68 million a year earlier, according to the company’s stock exchange filing.

From January through last month, revenue totaled NT$1.62 billion, up 14.92 percent from a year ago, as the company benefits from the proliferation of mobile and smart electronic devices.

Last month’s figure was lower than the market consensus forecast of between NT$800 million and NT$900 million, SinoPac Securities Investment Service (永豐投顧) analyst Frank Kuo (郭勁甫) said yesterday.

He attributed the decline to fewer working days and customers’ inventory adjustments.

Credit Suisse Securities analysts Derrick Yang (楊泓極) and Pauline Chen (陳柏齡) said Merry’s sales for this month could be similar to January’s level, thanks to customers’ new models.

They expect the company’s revenue for this quarter to decline 29 percent from last quarter’s NT$3.71 billion, citing seasonal factors and a higher comparison base for last quarter.

“We believe that new headset models from the second quarter will make up for the shortfall, and thus expect Merry to record 29 percent year-on-year sales growth for 2014,” they said.

Merry makes electro-acoustic components and mobile phone accessories for major brands and has in recent years branched into the wireless technology and battery businesses to pursue more vertical integration.

The 39-year-old company supplies headsets, battery packs, portable hands-free products and speaker products to clients such as Apple Inc, Sony Corp, Bose Corp, Logitech Co and Beats Electronics LLC. Merry shares closed 0.57 percent lower at NT$174 yesterday.

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