Sat, Jul 09, 2016 - Page 12 News List

Inventec revenue up on unexpected server and PC demand

TAILWIND:Inventec had expected that revenue from its server business would grow by a high single-digit percentage, but it could grow as much as 30 percent

By Lauly Li  /  Staff reporter

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.

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