Simplo Technology achieves target for first-quarter sales

Staff writer, with CNA

Fri, Apr 05, 2013 - Page 14

Simplo Technology Co (新普科技), one of Taiwan’s leading battery suppliers for notebook computers and smartphones, said yesterday it has achieved its sales target for the first quarter of this year by posting NT$11.5 billion (US$385 million) in consolidated sales during the period.

Earlier this year, Simplo, an Apple Inc supplier, forecast consolidated sales for the period January to last month of between NT$11.3 billion and NT$11.5 billion.

The actual number for the first quarter, however, was down from the NT$16.83 billion recorded in the fourth quarter. That was because the first three months of the year are traditionally considered a slow season for the electronics business, Simplo said.

The company also reported a 2.66 percent fall in its first quarter revenue, from a year earlier.

Last month, Simplo’s consolidated sales totaled NT$3.58 billion, down 3.5 percent from February, and also down 19.19 percent from a year ago, the company said.

Despite the sequential decline in sales, Simplo forecast net profit for the first quarter of between NT$700 million and NT$712 million, compared with NT$650 million recorded in the previous quarter.

The company said its earnings per share for the January-to-March period would be between NT$2.27 and NT$2.31, up from the NT$2.11 reported in the fourth quarter.

The earnings reporting season for listed companies in Taiwan is scheduled to commence later this month.

Looking ahead, Simplo said that as international brands launch new electronics devices at the end of the second quarter, the company expects its consolidated sales to grow during the period from this month to June.

Simplo said the global high-tech sector will enter a peak season in the second half of this year, boosting shipments of devices that command higher gross margins, while demand for ultra-thin notebook computers is also expected to pick up.

The company forecast its bottom line would improve during the second half of the year.