Touchpanel controller supplier FocalTech Systems Co Ltd (敦泰科技) yesterday said it expects revenue to grow at an annual rate of 30 percent this year, driven by robust demand for its new integrated driver and controller (IDC) chip for smartphones.
That compares with a 4 percent contraction in revenue to NT$11.02 billion (US$348.89 million) last year, as the company was in the process of revamping its product line.
The company also witnessed sharp declines in the prices of its two main products: driver ICs and touchpanel sensors for LCD panels.
The chip designer said it is to enter a new growth phase this year, given a more diverse and balanced product portfolio.
Revenue growth of 30 percent should be an achievable target, it said.
“In 2017, we expect touchpanel [sensors], IDC chips and driver ICs to each contribute one-third to the company’s total revenue,” chief financial officer James Liao (廖俊杰) told a media briefing.
“IDC will be a major driving force,” he said. “Most new premium smartphones will be equipped with IDC this year.”
In-cell touchpanels use IDC chips to make for slimmer screens and lower costs.
FocalTech said it expects 15 to 20 percent of new phones launched this year to be outfitted with full in-cell IDC touchpanels, compared with its forecast of 10 percent three months ago.
The company expects to ship about 100 million IDC chips this year, a more than 10-fold growth compared with last year.
Its IDC chips mainly go to Chinese mobile phone vendors, including Xiaomi Corp (小米) and Huawei Technologies Co (華為).
Net profit is expected to grow at a faster pace than last year, as IDC chips offer the highest profit margin among its products, Liao said.
The company expects its gross margin to climb to about 25 percent this year from 20 percent last year, he said.
Earnings of NT$3 per share is achievable this year, Liao said.
In the first three quarters of last year, the company made NT$65.07 million, or NT$0.22 a share.
The company was also optimistic about its revenue outlook for this quarter.
“The impact of a slow season will be less severe,” Liao said. “Aside from rising demand for IDC chips, panel supply constraint is no longer a problem.”
Revenue should drop by less than 10 percent sequentially this quarter from last quarter’s NT$2.7 billion, it said.
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