Mon, Oct 15, 2018 - Page 15 News List

WPG sees record revenue from core business sales

By Chen Cheng-hui  /  Staff reporter

Semiconductor components distributor WPG Holdings Co (大聯大) on Tuesday reported record revenue for last quarter on the back of the peak season effect.

Third-quarter revenue exceeded its previous guidance as the company benefited from steady growth in its core businesses — computers, communications and consumer electronics — and automotive electronics, WPG said in a statement.

WPG is the top vendor of its kind in the world in terms of revenue, ahead of Melville, New York-based Arrow Electronics Inc and Phoenix-based Avnet Inc. The company supplies products to more than 250 global brands through 115 outlets worldwide.

The Taipei-based company’s consolidated revenue last month reached NT$49.25 billion (US$1.59 billion), down 4.94 percent month-on-month and 3.91 percent year-on-year.

However, third-quarter revenue hit NT$150.37 billion, outpacing the company’s forecast of between NT$142 billion and NT$150 billion, and representing an increase of 7.8 percent over NT$139.53 billion in the second quarter and 2.5 percent from NT$146.67 billion in the same period last year, the company said.

WPG attributed the strong results to its successful deployment of products in new applications, such as the Internet of Things, artificial intelligence, cloud storage and high-performance computing, coupled with double-digit revenue growth in North America.

In the first nine months of the year, cumulative revenue totaled NT$413.31 billion, a 4.89 percent increase over NT$394.05 billion in the same period last year and representing 6.9 percent growth in US dollar terms, WPG said.

WT Microelectronics Co (文曄), WPG’s smaller local competitor and the world’s No. 4 supplier, on Tuesday reported record revenue for last quarter, with 67 percent quarterly and 59 percent annual revenue growth to NT$84.76 billion.

The quarterly growth beat the company’s guidance of a sequential increase of more than 40 percent, driven by both organic growth and new businesses.

Cumulative revenue in the first nine months gained 44.82 percent to NT$187.65 billion from a year earlier, the company said in a filing with the Taiwan Stock Exchange.

WPG shares on Friday closed at NT$37.25 in Taipei trading, having dropped 5.46 percent in the year to date, while those of WT Microelectronics closed at NT$39.85, down 11.84 percent this year.

This story has been viewed 1922 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top