E Ink Holdings Co (元太科技), which holds a commanding position in the global electronic paper display market, on Tuesday reported a substantial decrease in its operating losses and a significant increase in royalty income.
Operating losses narrowed to NT$53.39 million (US$1.73 million) during the quarter ending in June, compared with operating losses of NT$264 million in the first quarter, the company’s filings with the Taiwan Stock Exchange showed.
Royalty income last quarter surged about 79 percent to NT$798 million, from NT$446 million in the first quarter, the filings showed.
A year ago, the company received NT$871 million from licensing LCD manufacturing patents, it said.
The growth in royalty income helped lift the company’s net profit last quarter 1,991.84 percent to NT$861 million, from NT$41.16 million in the first quarter, the filings showed.
On an annual basis, net profit rose 7.89 percent to NT$798 million, with earnings per share of NT$0.77, up from NT$0.04 in the previous quarter and NT$0.71 in the same period last year, E Ink said.
Gross margin continued its downtrend to 37.67 percent from 38.27 percent a quarter earlier, it said.
E Ink said it expects revenue to grow at a faster pace in the second half of the year from NT$6.51 billion in the first half.
Separately, the company’s board of directors on Tuesday approved a plan to streamline its managerial structure to enhance operating efficiency, it said in a statement.
E Ink chairman Frank Ko (柯富仁) is to focus on supervising the company’s strategy formation and operations, and is no longer to hold the position of chief executive officer, which is to be eliminated.
E Ink president Johnson Lee (李政昊) would be in charge of the company’s newly created centers for corporate operations, sales, research and development, and finance.
The managerial adjustment is to take effect on Sept. 1.
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