Asustek Computer Inc (華碩), the world’s No. 5 PC brand, yesterday posted a better-than-expected net profit of NT$4.21 billion (US$136.6 million) in the third quarter on the back of strong demand from Europe and sufficient inventories.
That represented a rise of 43 percent from NT$2.94 billion in the second quarter and about 5 percent from NT$4.02 billion a year earlier.
The company said pro-forma earnings per share were NT$6.71 last quarter, higher than the NT$4.69 recorded in the second quarter and NT$6.40 a year earlier, while gross margin climbed to 13.9 percent from 11.9 percent in the previous quarter, compared with 16 percent one year ago.
“The quarterly rise in gross margin was due chiefly to reduced key component costs in September caused by decreased inventories,” company CEO Jerry Shen (沈振來) told reporters on the sidelines of an investor conference yesterday.
Shen played down the impact of the appreciation of the New Taiwan dollar on the company’s third-quarter performance, saying that necessary measures to hedge exchange rate losses were adopted in the second quarter.
Revenue was NT$82 billion in the third quarter, up 9 percent from a quarter earlier, when the company saw sales of NT$75.23 billion, chief financial officer David Chang (張偉明) told the investor conference. The figure rose 21 percent on a yearly basis.
“Third-quarter data was better than our expectations,” Chang said.
He added that revenue would continue to grow this quarter, with the operating margin staying at 4 to 5 percent.
“Achieving this goal shouldn’t be a problem,” he said.
Operating margin was 4.2 percent in the third quarter, compared with 3.9 percent the previous quarter, company data showed.
In the first three quarters, net income amounted to NT$12.46 billion, up 83 percent from the same period last year, with the gross margin climbing to 13.1 percent from 10.7 percent a year earlier.
Shipments of notebooks are expected to rise to 3.1 million units this quarter after a sequential gain of 20.83 percent to 2.9 million units in the third quarter, Chang said.
However, shipments of Eee netbook PCs dropped 7 percent from a quarter earlier to 1.4 million units because of the release of tablet computers, although the company expected them to rebound this quarter.
“The impact of the iPad on shipments of Eee PCs is insignificant outside the US and the UK,” Shen said, adding that demand for Eee PCs in Europe remained strong.
The company forecast that shipments of Eee PCs would reach 1.5 million units in the fourth quarter.
Asustek rose 1.46 percent to NT$243.50 yesterday, outpacing the benchmark TAIEX, which edged 0.76 percent higher, Taiwan Stock Exchange data showed.
PROTECTIONISM: China hopes to help domestic chipmakers gain more market share while preparing local tech companies for the possibility of more US sanctions Beijing is stepping up pressure on Chinese companies to buy locally produced artificial intelligence (AI) chips instead of Nvidia Corp products, part of the nation’s effort to expand its semiconductor industry and counter US sanctions. Chinese regulators have been discouraging companies from purchasing Nvidia’s H20 chips, which are used to develop and run AI models, sources familiar with the matter said. The policy has taken the form of guidance rather than an outright ban, as Beijing wants to avoid handicapping its own AI start-ups and escalating tensions with the US, said the sources, who asked not to be identified because the
Taipei is today suspending its US$2.5 trillion stock market as Super Typhoon Krathon approaches Taiwan with strong winds and heavy rain. The nation is not conducting securities, currency or fixed-income trading, statements from its stock and currency exchanges said. Yesterday, schools and offices were closed in several cities and counties in southern and eastern Taiwan, including in the key industrial port city of Kaohsiung. Taiwan, which started canceling flights, ship sailings and some train services earlier this week, has wind and rain advisories in place for much of the island. It regularly experiences typhoons, and in July shut offices and schools as
FALLING BEHIND: Samsung shares have declined more than 20 percent this year, as the world’s largest chipmaker struggles in key markets and plays catch-up to rival SK Hynix Samsung Electronics Co is laying off workers in Southeast Asia, Australia and New Zealand as part of a plan to reduce its global headcount by thousands of jobs, sources familiar with the situation said. The layoffs could affect about 10 percent of its workforces in those markets, although the numbers for each subsidiary might vary, said one of the sources, who asked not to be named because the matter is private. Job cuts are planned for other overseas subsidiaries and could reach 10 percent in certain markets, the source said. The South Korean company has about 147,000 in staff overseas, more than half
CHEMICAL FIRE: 10 Indian employees were injured by smoke inhalation at a Tata Electronics plant in Tamil Nadu state that produces components for Apple Inc At least 10 people received medical treatment, with two hospitalized after a major fire on Saturday disrupted production at a key Tata Electronics Pvt Ltd plant in southern India that makes Apple Inc’s iPhone components. The fire occurred at the plant in the city of Hosur in Tamil Nadu state that makes some iPhone components. It broke out near another building inside the Tata complex, which was to begin producing complete iPhones in the coming months. The fire was contained to one building and has been extinguished fully, top district administrative official K.M. Sarayu said. No decision has been made on when
RSS