Innolux Display Corp’s (群創光電) first-quarter profit missed analysts’ estimates after the world’s second-largest maker of liquid-crystaldisplay monitors began booking employee-bonus expenses.
Net income was NT$3 billion (US$99 million) to NT$3.5 billion, chief financial officer Thomas Hsu (�?�) said yesterday.
The company, which will report earnings by the end of this month, is expected to post a profit of NT$3.8 billion, according to the median of five analyst estimates compiled by Bloomberg.
“This is the first time we need to book employee bonus expenses,” Hsu said. “The bottom line for Q1 still meets our target. It’s an internal target which we don’t release to the public.”
Expenses for the payouts were about 8 percent of first-quarter profit at the company, which will also book a foreign currency loss for the period that’s “not big,” Hsu said, without elaborating.
Second-quarter earnings at Innolux may be bolstered by higher demand forecast by researcher WitsView Technology Corp.
“The first quarter should be the bottom for them,” said Nicholas Teo (趙長順), a Taipei-based analyst at Macquarie Group Ltd, who rates Innolux “outperform.”
Innolux, which lags behind Hong Kong-based TPV Technology Ltd (冠捷科技) in the market for LCD monitor panels, closed unchanged at NT$90 on the Taiwan Stock Exchange.
The company earned profit of NT$1.04 billion in the first quarter of last year. It aims to increase sales more than 40 percent this year, Hsu said in response to an Economic Daily News report today that cited President Tuan Hsing-chien (段行建) targeting 50 percent growth.
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