Quanta Computer Inc (廣達電腦), the world’s largest contract laptop maker by revenue, expects sales to rise at least 40 percent next year and that it will outperform its rivals with its technological edge, company executives said yesterday.
The Taoyuan-based company posted revenue of NT$211.76 billion (US$6.5 billion) in the third quarter, up 17 percent from the previous quarter, the company’s financial statement said.
Net income jumped 25 percent to NT$6.1 billion last quarter, up from NT$4.89 billion three months earlier and beating market estimates of NT$5.1 billion, with earnings per share growing from NT$1.34 to NT$1.68, the statement said.
“After a healthy third-quarter performance, we aim to achieve growth of more than 40 percent [in shipments] next year,” Quanta chairman Barry Lam (林百里) told a media briefing.
Lam said he was upbeat as the outlook is getting clearer and his company is seeking to maintain its leadership and technological advantage.
Laptop shipments reached 9.7 million units last quarter, with gross profit margin dipping to 5.9 percent, from 6.2 percent the preceding quarter, the statement showed. Shipments totaled 24.5 million in the first nine months and are expected to rise between 8.2 percent and 18 percent to between 10.5 million and 11.5 million units this quarter, vice chairman and president C.C. Leung (梁次震) told reporters.
Leung said laptop sales normally drop 10 percent to 15 percent in the first quarter, but his company would look to keep the decline below the benchmark.
“We’ll vie for orders with our technological edge, rather than with cut-throat prices,” Leung said.
Gross margin is likely to stay flat this quarter and would be under pressure to decline next year as component costs increase and average selling prices trend down, Leung said.
“Component shortages pose the greatest challenge to increasing shipments in the coming months,” he said.
Notebook shipments are projected at between 35 million and 36 million units this year, rising to about 50 million next year, accounting for 25 percent of global output, Leung said.
He said replacement demand following the launch of Windows 7 earlier this month would drive sales and revenues to offset sliding profit margins.
Chief financial officer Tim Li (李杜榮) put order visibility at a quarter ahead and expected the situation to improve further amid the recovery.
Operational income increased to NT$6.56 billion last quarter, from NT$6.27 billion, while non-operational income surged from NT$338 million to NT$1.7 billion, the statement said.
Quanta shares gained 1.13 percent to NT$62.5 yesterday.
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