MediaTek Inc (聯發科), which counts China as its biggest market, yesterday posted its best revenue in four months, helped by seasonal demand.
Revenue last month grew 7.8 percent to NT$17.91 billion (US$564 million), from NT$16.62 billion in June, according to a company statement. On an annual basis, last month’s revenue fell 7.05 percent from NT$19.27 billion.
The Hsinchu-based chipmaker said last week that it still expected demand to rise on seasonal factors this quarter, but the strength would be “moderate,” given sluggish end-product demand from emerging markets on unfavorable foreign exchange rates and staggering economies.
Revenue will grow between 10 percent and 18 percent quarter-on-quarter to between NT$51.7 billion and NT$55.5 billion this quarter, MediaTek forecast.
In the first seven months, MediaTek’s cumulative revenue shrank 5.79 percent to NT$112.49 billion, compared with NT$119.41 billion during the same period last year.
The company supplies mobile phone chips to numerous Chinese handset brands, from Xiaomi Corp (小米) to Lenovo Group Co (聯想), and competes with Qualcomm Inc in China, seizing a 40 percent share of the 4G chip market this year.
Credit Suisse analyst Randy Abrams last week cut 15 percent off the researcher’s earnings forecast for MediaTek to NT$29.72 billion this year from its previous estimate of NT$35.19 billion, citing falling prices and margins.
Abrams cut about 29 percent from his projection for the company’s net profit next year, forecasting profit of NT$28.93 billion from NT$40.66 billion previously.
MediaTek shares closed 1.09 percent higher at NT$278 in Taipei trading yesterday. Credit Suisse has a share price target of NT$300 for the stock.
Separately, semiconductor inspection tool and equipment maker Hermes Microvision Inc (HMI, 漢微科) reported last month’s revenue declined 91 percent to NT$175.61 million from NT$1.95 billion in June as one of its major clients put off advanced equipment installation.
From January to last month, cumulative revenue grew 20.16 percent to NT$4.05 billion from NT$3.37 billion a year earlier.
HMI supplies electron-beam wafer inspection equipment to chipmakers around the world. As its major clients cut capital expense, the company forecast this quarter’s revenue would slump by between 30 percent and 40 percent from NT$2.31 billion last quarter.
HMI last week reduced its full-year revenue growth forecast to a range between 5 percent and 20 percent annually from an expansion of 25 percent to 35 percent earlier this year, as technical difficulties delayed customers’ demand for an advanced e-beam inspection tool.
“We believe the cause of this guidance revision is mainly due to Intel Corp,” Yuanta Securities Investment and Consulting Co (元大投顧) analyst Steve Huang (黃柏璁) said in a report.
Huang said “this is just a short-term issue due to Intel’s recent management reshuffle, resulting in a temporary suspension of key equipment procurement.”
He said Intel’s procurement would resume after the reshuffle is completed in January next year, meaning that HMI’s revenue growth is expected to return to higher than 30 percent annually next year.
HMI shares were unchanged at NT$1,040 yesterday. Yuanta has set a target price of NT$1,575 for the stock.
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