MediaTek posts sales increase of 11% in January

Staff writer, with CNA

Fri, Feb 08, 2013 - Page 14

MediaTek Inc (聯發科), the nation’s biggest handset chip designer, yesterday said consolidated sales rose 11.47 percent last month to NT$8.45 billion (US$286 million) from December last year on the back of inventory restocking in China ahead of the Lunar New Year holiday.

Last month’s figure was also up 63.88 percent from a year earlier as inventory was raised to meet a buying spree during the holiday period.

However, market analysts said that due to the reduced number of working days this month because of holiday, MediaTek’s sales for the month are likely to drop.

The company’s revenue is expected to start to pick up again next month and continue to grow on expectations that shipments will increase to meet strong demand during the May. 1 Workers’ Day holiday in China, they said.

On Monday, MediaTek said sales for the current quarter would likely range between NT$21.9 billion and NT$24 billion, down between 10 percent and 18 percent from last quarter on the slow season effect.

The company also said smartphone chip shipments for the first quarter might fall to between 35 million units and 40 million units, from about 45 million units recorded in the previous quarter.

This year, MediaTek’s shipments of smartphone chips are expected to hit 200 million units, up from 110 million units last year, but those of feature phone chips will fall to a range of 280 million units to 300 million units from about 400 million units last year, the company said.