PixArt Imaging Inc (原相) yesterday said that net profit last quarter climbed 7 percent quarterly, as demand for sensors used in gaming computer mice, game consoles, wearable devices and surveillance products exceeded its expectations.
Net profit rose to NT$329.84 million (US$10.9 million), compared with NT$315.03 million in the previous quarter. On an annual basis, net profit nearly tripled from NT$121.62 million.
Earnings per share increased to NT$2.45, from NT$2.35 a quarter earlier and NT$0.92 a year earlier.
Gross margin improved to 58.2 percent, up from 58 percent the previous quarter and 57 percent a year earlier.
For this quarter, an outbreak of COVID-19 in China is expected to cut into the sensor maker’s revenue, as some clients have delayed shipments, PixArt chief financial officer Lo Mei-wei (羅美煒) told a teleconference.
“We expect the coronavirus to have short-term effects on the company’s operation. The scale of effects will depend on how fast the consumer market bounces back,” Lo said.
“The effects should be most severe this month and the company’s operations should gradually return to normal next month as customers restart work,” he added.
Revenue for this quarter would be lower than last quarter’s NT$1.94 billion, as shipments of sensors used in mice are to slump by between 10 percent and 15 percent quarterly due to seasonal weakness, and those used in wearable devices and true wireless stereo earbuds are to fall deeply due to the outbreak, while those used in game console controllers are to grow more than 10 percent quarterly thanks to strong sales of Nintendo Co’s Switch, Lo said.
Mouse sensors contributed 60 percent to PixArt’s revenue last quarter, game console sensors made up 10 percent and sensors used in wireless earbuds, wearables, surveillance devices and other products accounted for 30 percent, the company said.
This year, wireless earbuds, wearables and surveillance devices would be the major growth drivers, as the company has added new customers and products to existing lineups, Lo said.
PixArt reported that net profit last year dropped 2.65 percent to NT$835.59 million, from NT$858.36 million in 2018, with earnings per share falling from NT$6.57 to NT$6.23, while revenue jumped 10.2 percent to NT$6.08 billion, from NT$5.51 billion in 2018.
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