Fri, Apr 10, 2015 - Page 14 News List

Contract PC makers see profits picking up in Q2

SMART CALL:The firms predicted a return to growth following a seasonal downturn, saying that momentum was expected to come from demand for smart devices

By Lauly Li  /  Staff reporter

Major Taiwanese contract PC makers expect business to rebound this quarter, after sales dropped last quarter by double-digit percentages during the slow season.

“With the strong demand for the new Zenfone 2 smartphone, we expect our sales this quarter to increase from last quarter,” Asustek Computer Inc (華碩) spokesman David Chang (張偉明) told the Taipei Times yesterday, without offering a sales estimate.

The company’s consolidated sales fell 18.9 percent from the previous quarter to NT$111.89 billion (US$3.58 billion) last quarter, which Asustek attributed to seasonal factors, but the firm said the softness would not extend to this quarter.

Chang also said Asustek did not suffer from foreign-exchange losses last quarter because it had taken measures to limit its exposure to currency volatility in emerging markets.

The company booked massive foreign-exchange losses of NT$713 million in the final quarter of last year, due to the depreciation of the ruble against the US dollar. The losses eroded its gross margin by 1 percentage point to 12.6 percent in that quarter.

Compal Electronics Co (仁寶電腦) saw its sales last quarter fall 19.55 percent from the previous quarter to NT$198.3 billion, but the figure grew 16.9 percent from the previous year.

“The strong annual growth was mainly driven by double-digit percentage shipment growth of smart devices, and we expect the strong momentum to continue this quarter,” Compal spokesperson Tina Chang (張妍婷) said by telephone.

The company expects sales of notebook and non-notebook products, including smartphones, tablets and TVs, to grow by double-digit percentages this quarter, she said.

Compal shipped 9.3 million notebooks last quarter, up 5 percent from the previous quarter and accounting for 75 percent of the firm’s total revenues last quarter, she added.

Sales at Inventec Corp (英業達) last quarter plunged 20.79 percent to NT$89.3 billion from the previous quarter’s NT$112.74 billion, 23.47 percent lower than the previous year.

However, the company expects growing shipments of PC-related products from new clients to drive up this quarter’s sales.

“In addition to the strong demand for servers and mobile devices, we expect PC shipments this quarter to increase significantly from last quarter,” Inventec chief financial officer Yu Chin-pao (游進寶) said.

Inventec shipped 3.55 million PCs last quarter and the company expects the shipments to jump 40 percent to 4.97 million units this quarter, Yu said.

Compal shares climbed 0.76 percent to NT$26 yesterday in Taipei trading, while Asustek shares rose 0.63 percent to NT$319 and Inventec stock dropped 0.2 percent to NT$21.7.

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