Mobile phone camera lens supplier Largan Precision Co (大立光) yesterday said its revenue might increase this quarter from a year earlier, bolstered by the increasing adoption of dual cameras in smartphones.
“Revenue for this month and next could outpace that of the same period last year due to the rising demand for dual cameras,” Largan chief executive officer Adam Lin (林恩平) told a teleconference, without offering a range of estimated growth.
He added that the company’s plants would continue to run at full capacity this quarter.
The construction of a new plant in Taichung is scheduled to be completed next quarter and could become operational in the third quarter at the earliest, helping to ease a capacity constraint, he said.
While waiting for the new plant, the company is working on improving production yields and efficiency, Lin said.
Lin said he is not satisfied with the production yields for some projects, but added that he believed they would improve this quarter, which should benefit the firm’s gross margin.
Largan’s performance this year will largely depend on the adoption rate of dual cameras in the global smartphone industry and the supply of key components for the product, he said.
Unlike producing single-camera lenses, the assembly of dual cameras requires sensors, actuators and lenses, Lin said, adding that a shortage in any of the key components would affect production.
The company yesterday reported a record net profit of NT$8.44 billion (US$265.58 million), or NT$62.99 per share, for last quarter, up 25.78 percent from NT$6.71 billion a year ago and 24.85 percent from the previous quarter’s NT$6.96 billion.
Gross margin expanded by 10.76 percentage points from a year ago and 2.7 percentage points from the previous quarter to a historic high of 70.66 percent last quarter, while operating margin also set a record of 60.9 percent.
A Largan investor relations official attributed the gross margin improvement to a better product portfolio, larger revenue scale, improving yields and a weaker currency exchange rate.
Despite last quarter’s robust performance, the company’s full-year net profit dropped 6 percent annually to NT$22.72 billion, or NT$169.4 per share, compared with NT$24.15 billion, or NT$180.08 per share, the previous year.
‘BIG LOSS’: This year might see the last generation of Huawei’s Kirin chips, as their production would stop next month because they are made using US technology Chinese tech giant Huawei Technologies Co (華為) is running out of processor chips to make smartphones due to US sanctions and would be forced to stop production of its own most advanced chips, a company executive has said, in a sign of growing damage to Huawei’s business from US pressure. Huawei, one of the biggest producers of smartphones and network equipment, is at the center of US-Chinese tension over technology and security. Washington last year cut off Huawei’s access to US components and technology, and those penalties were tightened in May, when the White House barred vendors worldwide from using US
’WHITE BOX’: The open platform would give local firms access to Cisco’s cloud-based mobile network to develop 5G telecom equipment and tap into the global market The Ministry of Economic Affairs (MOEA) yesterday introduced a new 5G “open lab” in collaboration with US-based information technology and networking giant Cisco Systems Inc to address the rapidly growing “white box” 5G networking equipment market. The open lab will be a platform where Taiwanese manufacturers can access Cisco’s cloud-based mobile network to develop their own 5G telecom equipment, such as small-cell base stations, network switches, modems and Internet of things (IoT) devices, a ministry statement said. The open platform would allow Taiwanese manufacturers to tap into the lucrative 5G telecom equipment market, which was previously monopolized by Nokia Oyj, Ericsson AB
CORPORATE SCANDAL: Cathay Life has invested NT$13.3 billion in Bank Mayapada since 2015, but the latest loss of NT$8.8 billion has completely written off its investment Cathay Life Insurance Co (國泰人壽) yesterday said it would recognize an investment loss of NT$8.8 billion (US$298.1 million) in Indonesia’s Bank Mayapada Internasional Tbk PT due to concerns about the lender’s operations amid a corporate scandal. The company said it would revise its earnings result for June, from a net profit of NT$6.52 billion to a net loss of NT$520 million, its first monthly loss over the past 17 months. After booking an investment loss of NT$5.2 billion in Bank Mayapada earlier this year, Cathay Life has so far recognized total investment losses of NT$14 billion in the lender, executive vice president
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) yesterday reported that revenue last month expanded 25 percent annually, but fell 12.8 percent month-on-month to NT$105.96 billion (US$3.59 billion). In the first seven months of this year, the chipmaker’s revenue surged 33.6 percent to NT$727.26 billion, compared with NT$544.46 billion a year earlier. TSMC has said it aims to grow its revenue by more than 20 percent this year. The company has since May 15 stopped taking new orders from Huawei Technologies Co (華為), its second-biggest customer after Apple Inc, due to the US’ restrictions on exports containing US technologies. TSMC has no plans to