Power management IC designer Silergy Corp (矽力杰) yesterday said revenue growth this quarter is likely to hold relatively flat from the previous quarter, while expecting a boom in demand for consumer applications during the peak season in the fourth quarter.
“It has become apparent that anticipated sales momentum will not arrive during the third quarter — a traditionally high season — for the information technology and PC sector this year,” Silergy chairman Chen Wei (陳偉) told an investors’ conference organized by the Taiwan Stock Exchange Corp
Founded by Silicon Valley veterans, the company operates a subsidiary in Hangzhou, China, where the peak season usually falls during the second and fourth quarters.
“The company expects revenue to peak in the October to December quarter, driven by solid-state drives [SSD], video surveillance, smartphones and smart TV’s applications,” Chen said.
“In particular, major online retailers in China may stimulate demand for wearable devices through aggressive promotions towards the end of this year,” he said.
Chen said that the company is not overly concerned with the recent drop in memory storage prices in its SSD business.
‘While the average selling price will begin diminishing as they approach the end of their two or three-year product cycles, profitability will rebound as new products are introduced,” he said.
Major SSD makers such as Samsung Electronics Co might require new power management solutions to keep up with advancements in NAND flash controllers, he added.
Silergy also expects revenue growth to be propelled by Beijing’s 13th Five-Year Plan that is set to begin next year, as China begins to place greater emphasis on energy efficiency and environmental conservation standards for industries.
Chen said the company is aiming to develop power management solutions for the higher voltages required by industrial applications.
The global market for power management IC is expected to expand from US$29.9 billion in 2012 to US$38.7 billion next year and continue growing at about 20 percent annually, he said, citing findings by IHS iSuppli.
“Silergy is also developing sensor solutions to tap into a number of emerging Internet of Things markets such as wearable devices and robotics,” he added.
In the second quarter, the company reported net income of NT$307 million, up 30 percent year-on-year and 51 percent quarter-on-quarter, with earnings per share (EPS) of NT$3.9. Revenue during the period came in at NT$1.25 billion, up nearly 40 percent from the previous quarter, with gross margin of 47.2 percent.
In the first half, net income totaled NT$511 million, with EPS of NT$6.67 and gross margin of 47.34 percent. First-half revenue grew 50.2 percent year-on-year to NT$2.2 billion, Silergy said.
For this quarter, Yuanta Securities Investment Consulting Co (元大投顧) forecast revenue to decline slightly from last quarter due to a slow quarter for China’s consumer market, but gross margin is likely to remain stable.
‘We forecast EPS of NT$3.5 this quarter, followed by NT$13.9 for the full-year,’ Yuanta analyst George Chang (張家麒) said in a client note yesterday.
Silergy shares slid 1.91 percent to NT$308 yesterday in Taipei trading.
They have been resilient in this downturn, rising 4.05 percent in the past three months, compared with the broader market’s 14.43 percent decline over the period, Taiwan Stock Exchange data showed.
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