Wed, May 08, 2019 - Page 11 News List

Novatek net income soars 114.67% on solid demand

By Kwan Shin-han  /  Staff reporter

Novatek Microelectronics Co (聯詠科技), which makes driver ICs for large LCD panels, yesterday reported that first-quarter net income skyrocketed 114.67 percent year-on-year to NT$1.97 billion (US$63.73 million) from NT$0.92 billion, or earnings per share of NT$3.23, from NT$1.51.

The company said gross margin increased to 32.81 percent, up from 29.44 percent a year earlier and also better than its guidance of between 30.5 and 32.5 percent, thanks to product portfolio changes and non-recurring engineering income.

First-quarter revenue surged 42.81 percent from NT$10.47 billion to NT$14.95 billion, it said.

The Hsinchu-based company is positive for this quarter, saying gross margin is forecast to be between 30.5 and 32.5 percent, and that revenue would reach between NT$16.1 billion and NT$16.6 billion, up by 8 to 11 percent quarter-on-quarter.

“We expect revenue for this quarter to be a record due to strong demand for small displays and a rising market penetration rate of our products,” Novatek president Steven Wang (王守仁) said.

The company also expects the second half of the year to be better than the first half, he said.

Wang said the output of touch controller with display driver integration chips would increase to 60 million units this quarter, from 50 million units last quarter, while its products for active-matrix organic light-emitting diode (AMOLED) panels is expected to double to 2 million units per month.

Demand for larger displays would be less than for small displays this year, it said.

Novatek has started to sell driver ICs for large-sized AMOLED panels, while products for system-on-chip designs, used in digital video recorders and Internet protocol cameras, are expected to start mass production in the second half, it said.

The company has proposed a cash dividend of NT$8.8 per common share, a payout ratio of 83.79 percent.

Novatek shares yesterday closed up 8.85 percent at NT$221.5 in Taipei trading.

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