Radiant Opto-Electronics Corp (瑞儀光電), a leading supplier of LCD backlight modules used in smartphones, tablets, notebook computers and TVs, yesterday reported stronger-than-expected results for last quarter on higher orders from Apple Inc and efficient management.
Meanwhile, the company's board has decided to pay a cash dividend per share of NT$7 based on last year's earnings per share of NT$10.83, representing a payout ratio of 65 percent.
Net income surged to NT$1.43 billion (US$46.27 million) in the first quarter of the year, compared with NT$142.27 million in the same period last year, Radiant said.
Earnings per share reached NT$3.07, up from NT$0.31 a year earlier, the company said.
Gross margin increased to 16.79 percent, compared with 12.45 percent a year earlier, while revenue rose 32.44 percent year-on-year to NT$14.86 billion, it said.
With the strong performance last quarter, revenue could decline quarterly this quarter, but would remain higher than a year earlier, Radiant spokesman Vincent Chang (張紋祥) said.
Normally the first quarter is a low season for LCD suppliers.
Chang attributed the growth in the first quarter to steady orders of Apple Inc’s 7.9-inch iPad mini, 10.5-inch iPad Air, older iPhone models and MacBook Airs, which were released late last year.
Efforts to improve productivity, enhance efficiency and adopt automation also contributed, Chang said.
Backlight units used in panels for mobile devices, such as tablets and smartphones, remained the company’s main business the first quarter, accounting for 65 percent of its total revenue, up from 51 percent a year earlier, while those for notebook computer displays contributing 30 percent, down from 39 percent, with the remainder made up of TVs and other items, the company said.
About 30.80 million backlight units for mobile devices were sold in the first quarter, in addition to 8.37 million units for notebooks and 145,000 for TVs, the company said.
Radiant has been investing in automotive screens in the past few years, but the contribution would still be limited this year, the company said.
Taiwan remained the company’s largest market in the first quarter, accounting for 46 percent of overall sales. South Korea was second with 32 percent and Japan contributed 15 percent, while China held the remaining 7 percent.
Radiant chairman Wang Pen-jan (王本然) said that he expects a flattish performance this year.
“We predict fewer tablets and mobile phones will be sold this year, so we are focusing on products with a higher gross margin, such as budget tablets and notebooks,” Wang said.
The company said it increased its operating expenses last year by 10.8 percent year-on-year to NT$3.44 billion as it aimed to focus more research and development on 12-inch light guide plates.
“Thinner panels, narrower bezels and power-saving techniques are still the top industry goals,” Wang said.
While organic LED (OLED) technology is likely the next-generation display technology for smartphone screens, the technology’s effect on the firm would be limited for the time being, evidenced by the strong backlight unit demand from customers last quarter, Radiant said.
However, it said it was conservative on the outlook for mini-LED technology.
“OLED is still the solution for most smartphones, so it is pointless to apply mini-LED to every phone,” Chang said.
Radiant shares yesterday closed up 4.69 percent at NT$111.5 in Taipei trading.
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