Mon, Oct 09, 2017 - Page 16 News List

Sercomm revenue hit record last quarter

By Lisa Wang  /  Staff reporter

Sercomm Corp (中磊) on Friday said that its revenue last month jumped 17 percent annually, bringing last quarter’s revenue to a record high, as telecom operators accelerated broadband capacity expansions to cope with the increased use of high-definition video streaming services and Internet of Things (IoT) applications.

Revenue increased to NT$3.71 billion (US$122 million) last month, compared with NT$3.16 billion a year earlier, the Taipei-based broadband equipment supplier said in a statement.

On a monthly basis, revenue rose 4.8 percent from NT$3.54 billion.

In the quarter that ended on Sept. 30, revenue climbed 13 percent quarter-on-quarter from NT$9.3 billion to NT$10.52 billion, the statement said.

That represented annual growth of 11 percent.

The third-quarter results matched the expectations of Sercomm chief executive officer James Wang (王煒), who last month said the company was on track to see record quarterly revenue, benefiting from a strong rebound largely on Chinese demand for its fiber-optic home gateway units.

“Customer order visibility remains good because of growing use of emerging applications, such as big data and high-definition video streaming. That helps speed up progress toward the deployment of advanced fiber-optic network serving gigabit broadband, ” Wang said in the statement.

The new applicants helped Sercomm gain bigger order slots from its telecom clients and lifted shipments of products from fiber-optic home gateway units, the statement said.

Sercomm last month shipped the first batch of equipment for a new networking technology called “low power, wide area” (LPWA) to its clients in China and South Korea.

The LPWA technology is key to unlocking IoT applications, such as “smart” cities and “smart” homes, given its long-range access and deep penetration, Wang said.

In China, LPWA modules have been adopted by bike-sharing operators to help locate their vehicles, while in South Korea, the modules are used in electricity, water and gas meters to help conserve energy, Wang said.

By 2020, LPWA modules are expected to make up 10 to 15 percent of Sercomm’s overall revenue, he said.

Sercomm reiterated its bullish view of customer demand this year.

As the company is to embrace the arrival of the 5G era, it said it is developing various products, such as small-cell base stations for the 5G network, equipment for IoT applications, “smart” energy management and “smart” healthcare.

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