E Ink Holdings Inc (元太科技) yesterday said it lost NT$603 million (US$19.96 million) last quarter due to seasonally weak demand.
The firm, which supplies e-paper displays for Amazon.com Inc’s Kindle e-reader series, was in the red in the first three quarters last year, but made net income of NT$1.01 billion in the fourth quarter.
Last quarter’s losses widened from losses of NT$490 million in the first quarter of last year.
The world’s biggest e-paper display supplier reported NT$2.96 billion in revenue last quarter, almost half that of the previous quarter.
“The numbers were not great,” Yuanta Investment Consulting (元大投顧) analyst George Chang (張家麒) said in a research note.
He had forecast that E Ink would lose NT$516 million last quarter.
E Ink posted an operating loss of NT$1.21 billion for last quarter, which also exceeded Chang’s estimate of NT$760 million.
As the company is likely to take some extra reserves in its ongoing restructuring, E Ink may break even or significantly shrink its operating loss in the near future, Chang said.
Separately, touchpanel maker Young Fast Optoelectronics Co (洋華光電), which counts Samsung Electronics Co as its top client, posted an improved quarterly loss of NT$212 million for last quarter from a quarter ago.
Young Fast lost NT$1.31 billion in the fourth quarter last year.
It said in March that prices would stabilize this quarter after a 20 percent annual decline last year.
The company made a net profit of NT$177 million in the first three months of last year.
On Wednesday, rival Wintek Corp (勝華) reported narrowed quarterly losses of NT$1.5 billion, compared with losses of NT$3.83 billion in the fourth quarter.
That marked the eighth straight quarterly losses for Wintek.
Losses widened from the NT$840 million loss posted in the first quarter of last year. Wintek has said it expects operations to improve significantly in the second half of this year from the seasonally slow first half.
ELECTRONICS Lite-On delays sale of unit Lite-On Technology Corp (光寶科技) yesterday said it would postpone the sale of its solid-state drives (SSD) business to Kioxia Holdings Corp, formerly known as Toshiba Memory Holdings Corp, due to disruptions amid the COVID-19 pandemic. Last year, the Taiwan-based electronics components supplier struck the deal with the Japanese firm, agreeing to sell the unit for US$165 million. Citing unfinished integration work due to the pandemic, Lite-On has deferred today’s closing date until further notice, adding that the delay would not have a negative effect on the unit’s operations. AUTO PARTS Hiroca approves dividend Automotive interior parts supplier Hiroca
NOT ALL GOOD: Analysts warned that other data for last month might be less rosy due to the virus and analysts expect the PMI to contract again next month Chinese factory activity saw surprise growth last month as businesses went back to work following a lengthy shutdown, but analysts said that the economy faces a challenging recovery as external demand has been devastated by the COVID-19 pandemic, while the World Bank said that growth could screech to a halt. China is slowly returning to life after months of tough restrictions aimed at containing the virus, which put millions of people into virtual house arrest and brought economic activity to a near standstill. The strict measures saw a closely watched gauge of manufacturing plunge to its lowest level on record in February,
ALL ABOUT STRATEGY: The company is optimistic, saying that its gross margin should increase year-on-year, but it is scaling back on its plans to expand capacity Quang Viet Enterprise Co (QVE, 廣越), which makes down jackets and garments for sportswear and outdoor brands including Adidas AG, yesterday said that revenue might drop 5 to 10 percent annually this year as some customers trimmed orders in response to the COVID-19 pandemic. That would mark its first revenue decline since 2016. Quang Viet posted record-high revenue of NT$16.26 billion (US$537.45 million) last year, up 22 percent from 2018. Down jackets made up 40 percent of it revenue last year. North Face Inc and Patagonia Inc are this year likely to reduce orders by 20 to 30 percent from a
Taipei 101, one of the nation’s leading shopping centers, is planning to reduce its business hours due to decreased demand amid the COVID-19 pandemic. Taipei 101 is to open daily at noon and close at 9pm from April 6, building management said in a statement on Monday. The shopping center has been opening at 11am and closing at 9:30pm from Sunday to Thursday, while closing at 10pm on Friday and Saturday. The restaurants in the food court — on the basement level — would adjust their business hours as necessary, but the supermarket would continue to open at 9am daily, management said. The shopping