Inventec Corp (英業達) yesterday reported its highest monthly revenue in nine months, fueled by the better-than-expected demand for servers and commercial PCs.
“The server demand from Chinese data center clients was better than the company’s previous estimate, boosting the overall revenue performance,” an Inventec investor relations official said by telephone.
On a consolidated basis, revenue for last month reached NT$40.21 billion (US$1.24 billion), jumping 28.87 percent year-on-year and 17.64 percent month-on-month, according to the company’s filing with the Taiwan Stock Exchange.
That brought Inventec’s quarterly revenue to NT$108.32 billion in the second quarter, up 19.43 percent annually and 13.59 percent quarterly. Last quarter’s figure was also higher than the market estimate of NT$97.71 billion.
Inventec previously forecast that revenue from its server business would grow by only high single-digit percentages in the second quarter from the previous quarter, but due to unexpected orders from its Chinese clients, the growth rate could reach as much as 30 percent, the official said.
The sales contribution from the server business is expected to expand to nearly 40 percent last quarter from the previous quarter’s 35 percent, the official said.
Inventec’s PC business, which accounted for 48 percent of the company’s overall revenue in the first quarter, also grew better than Inventec’s expectations last quarter.
“We previously forecast a flattish revenue from the PC segment last quarter, but thanks to North American clients’ strong demand, the sales expanded by single-digit percentage from a quarter earlier,” the official said.
Revenue of Inventec’s handheld segment, including its smartphone assembling business for China’s Xiaomi Corp (小米), climbed mildly last quarter from a quarter earlier, in line with the company’s estimate, she said.
However, the company’s solar power business saw sales drop slightly last quarter from the first quarter, due to the falling average selling prices, she added.
Inventec said it expects demand for servers, PCs and handheld devices to grow steadily this quarter, on the back of the traditional peak season for the electronics industry, the official said.
However, the company’s revenue for this quarter would be flattish or only a slight increase from last quarter, given a higher base last quarter, she said.
The cumulative revenue in the first half expanded 13.17 percent annually from NT$179.99 billion to NT$203.69 billion, the filing said.
SIZE MATTERS: Medium-sized hotels that do not have the support of parent groups are more vulnerable and are forced to take action, a REPro Knight Frank researcher said About 50 hotels across Taiwan are seeking to exit the market as they succumb to the bleak business outlook amid international travel restrictions imposed to combat the COVID-19 pandemic. Yomi Hotel (優美飯店) on Minsheng E Road, Sec 1, in Taipei is seeking to transfer ownership with an asking price of NT$950 million (US$32.15 million) and a pledge for a lease contract that guarantees a 3 percent return. The budget hotel, with room rates that start from NT$1,400 per night, maintains normal operations, but has been struggling since March, when the government placed restrictions on inbound and outbound travel. Occupancy rates for hotels in
With the US dollar expected to weaken in the next 12 months due to near-zero interest rates, investors should consider purchasing US corporate bonds, Standard Chartered Bank Taiwan Ltd (渣打台灣銀行) said on Thursday. The bank said that the US Federal Reserve since last month has been buying bonds issued by US companies to curb default rates. The US dollar is forecast to be weaker against the pound, the euro and the yen, as well as the Canadian dollar, the Swedish krona and the Swiss franc, as the greenback lacks high investment returns after the Fed in March slashed the benchmark interest rate
A Bollywood actor’s face tattooed on his arm, Sandeep Bacche’s devotion shocks few in India where stars enjoy semi-divine status, but even there the hallowed silver screen might be losing its shine to streaming services and pandemic fears. “Whenever things get better and theaters begin operations, I will watch three movies a day for sure just as a way to celebrate,” said the Mumbai rickshaw driver, who is recovering from the virus himself. However, others might not join the party. With cinemas shut for months due to a COVID-19 lockdown, and little prospect they will reopen soon, frustrated Bollywood producers have turned to
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), the world’s largest contract chipmaker, is to issue NT$13.9 billion (US$469.5 million) in unsecured bonds to help fund its plan to expand production capacity, it said on Friday. In a Taiwan Stock Exchange filing, TSMC said the bonds would comprise three tranches: NT$5.7 billion payable over five years, NT$6.3 billion over seven years and NT$1.9 billion over 10 years. The interest rates would be 0.58 percent on the five-year bonds, 0.65 percent on the seven-year ones and 0.67 percent on the 10-year tranche, TSMC said. Capital Securities Corp (群益金鼎證券) is to serve as the main underwriter in