Tue, Sep 03, 2019 - Page 11 News List

Weltrend counts on USB controllers for cellphones

CHINESE CLIENT:Production for the order is expected to begin late this month at its Hsinchu plant, while the firm hopes for a boost from the traditional peak season

By Natasha Li  /  Staff reporter

IC maker Weltrend Semiconductor Inc (偉詮電子) yesterday gave an optimistic outlook for the rest of the year and said it would supply universal serial bus (USB) power delivery controllers to one of China’s top three mobile phone vendors.

The company specializes in the production of ICs for PC peripherals, consumer electronics, power management and payment security.

While mobile phones make up only 10 percent of revenue from its power and analog IC business segment, of which laptops and Nintendo Co’s Switch gaming consoles contribute 70 percent and 20 percent respectively, Weltrend is confident the deal will stimulate its revenue this quarter.

“We are still rounding out a few details of the negotiation, but mass production should start at our Hsinchu plant by the end of this month,” Weltrend chief financial officer and spokeswoman Cindy Kuo (郭幸容) said by telephone.

Weltrend has shipped about 50 million USB power delivery controller units so far this year and is aiming to increase full-year shipments to 70 million units, the Chinese-language United Daily News reported last week.

Net profit in the first half of this year fell 17.95 percent year-on-year to NT$155.47 million (US$4.95 million), with earnings per share of NT$0.88, while revenue decreased by 13.52 percent to NT$1.09 billion.

In the second quarter, net profit fell 69.09 percent year-on-year to NT$44.99 million, which translated into earnings per share of NT$0.25, but gross margin rose from 24 percent to 26 percent thanks to better cost management, company data showed.

Due to the US-China trade dispute, Weltrend has reported consecutive year-on-year declines in its monthly revenue since November last year, with the largest drop, 17.25 percent, in March.

However, it might see signs of an early recovery as its July revenue declined by just 4.07 percent to NT$222.77 million.

“Hopefully, we will soon regain momentum as we are entering the traditional peak season for the industry,” Kuo said, adding that the company also expects growth from its consumer IC business segment.

“We are also optimistic concerning our MCUs [micro-controllers],” Kuo said, noting the wide-spread utilization of the product across various domains such as healthcare, industrial setups, gaming consoles and wireless earbuds.

Weltrend shares yesterday gained 1.47 percent to close at NT$27.7 in Taipei trading. They have risen 23.94 percent this year.

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