Tue, May 07, 2019 - Page 12 News List

GIS profits hit by slow iPhone sales

By Lisa Wang  /  Staff reporter

General Interface Solution Holding Ltd (GIS, 業成控股), a supplier of touch modules for Apple Inc’s iPhones and iPads, yesterday reported a 58 percent sequential decline in net profit for last quarter, mostly due to sagging iPhone demand.

Net profit plunged to NT$689.36 million (US$22.3 million) in the quarter ending March 31, compared with NT$1.64 billion in the fourth quarter last year.

Earnings per share fell to NT$2.04 from NT$4.86 in the previous quarter and NT$1.78 in the same period last year, according to the company’s filing with the Taiwan Stock Exchange.

Last quarter’s net profit was slightly below Daiwa Capital Markets Inc’s forecast of NT$735 million, or NT$2.16 per share, for the January-March period.

Given intensified industry competition and likely loss of force touch orders for new iPhones from the second half of this year, Daiwa said it sees limited earnings visibility for GIS this year and next year.

TPK Holding Co (宸鴻) is its main competitor for 3D force touch sensor orders for iPhones.

As such, the investment consultant expects GIS to deliver muted earnings this year and next year, with gross margin staying at 8.5 or 8.6 percent this year and next year, compared with 8.6 percent last year and 11.5 percent in 2017.

The Miaoli-based firm also reported that revenue for last month plunged 23.44 percent to NT$8.05 billion from NT$10.51 billion in March, but edged up 1.37 percent from NT$7.94 billion a year earlier.

Aggregate revenue in the first four months of the year surged 25.52 percent year-on-year to NT$37.48 billion.

GIS last month said that this year’s ups and downs in revenue would follow a “historical pattern,” despite the firm securing new orders to supply under-display fingerprint touch modules for the world’s top first-tier smartphone maker.

GIS is reportedly the main supplier of Samsung Electronics Co’s ultrasonic under-display touch module used in its Galaxy S10 series.

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