Tue, Nov 10, 2015 - Page 13 News List

Pegatron expects revenue increase in fourth quarter

By Lauly Li  /  Staff reporter

Pegatron Corp (和碩), which assembles Apple Inc’s iPhone models, yesterday said that it expects fourth quarter revenue to grow by 30 percent and reach this year’s peak.

“We are optimistic about the outlook of our main product lines this quarter,” Pegatron chief executive officer Charles Lin (林秋炭) told an investors conference in New Taipei City, citing a positive business forecast provided by Pegatron’s main clients.

Lin’s comments came after Pegatron reported a better-than-expected earnings result of NT$6.01 billion (US$183.06 million) for last quarter.

The company’s net profit jumped 26.7 percent annually and 29.2 percent quarterly, beating the market’s estimate of NT$5.9 billion.

Lin said the revenue from Pegatron’s non-computing segment, which contributed 77 percent of the firm’s total revenue of NT$309.53 billion last quarter, is expected to grow by between 25 percent and 35 percent from last quarter on the back of robust demand from smartphone clients.

Pegatron said that it expects notebook shipments to increase between 20 percent and 25 percent quarterly, while motherboard and desktop shipments are expected to grow by between 10 percent and 15 percent from a quarter earlier.

Pegatron chief executive officer Jason Cheng (程建中) said notebook shipments in the second and the third quarter had “barely” met the company’s previous guidance.

However, he said that he foresees the notebook segment climbing this quarter and the growth momentum to extend to next year, thanks to the launch of Microsoft Corp’s Windows 10 operating system and a client’s new high-end product launch.

Pegatron is widely believed to be the sole assembler of Microsoft’s first notebook product Surface Pro.

Cheng said the shipment of the client’s new high-end notebook is considerably small this quarter, but he expects the product to make a meaningful contribution to next year’s bottom line.

Commenting on Pegatron’s performance last quarter, Cheng said that recruitment in China, components supply and the yield rate were smoother than the company’s previous estimate, leading to a better than expected performance.

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