TPK Holding Co (宸鴻), which counts Apple Inc as its top client, yesterday posted an increase in profits for a second straight quarter, benefiting from new smartphone launches by its major clients and increased demand during the year-end shopping season.
Net profit last quarter was little changed at NT$192 million (US$6.22 million), compared with NT$191 million the previous quarter. On an annul basis, net profit plunged 68 percent from NT$591 million.
The touch panel supplier gave a guidance that was above seasonal patterns for this quarter, as it secured bigger orders from major customers.
As the industry has entered a slack season this quarter, the Taipei-based company expects revenue to dip 30 percent quarter-on-quarter to NT$32.19 billion, a figure similar to the one it registered in the third quarter last year, it said, adding that the third quarter is usually the peak season.
If the company reaches its goal, TPK would see revenue grow at an annual rate of 54 percent this quarter from NT$20.85 billion in the first quarter of last year.
“The first quarter will be traditionally slow as usual,” TPK chief strategic officer Freddie Liu (劉詩亮) told a teleconference, adding that the supply chain would be “entering inventory digestion following the end of Thanksgiving, Christmas and the Lunar New Year.”
Gross margin is to approach the break-even level, compared with 0.6 percent last quarter, because of an unfavorable product mix, Liu said.
For this year as a whole, TPK expects revenue to continue to grow, compared with NT$113.48 billion last year, chief financial officer Leo Hsieh (謝立群) said, adding that revenue grew 5.9 percent last year compared with a year earlier.
TPK plans to cut back capital spending this year to NT$4 billion from NT$6 billion last year, and more than half of the amount would be invested in nano-silver wiring technology, the company said.
It aims to be ready to ship products using nano-silver wiring before the end of this year or at the beginning of next year, it said.
Nano-silver wiring is suitable for large-size displays for schools and for smartphones with foldable OLED screens, the company said.
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