Notebook contract manufacturer Inventec Corp (英業達) yesterday reported a 34 percent annual decline in net income to NT$1.28 billion (US$41.58 million) for last quarter, mainly due to foreign exchange losses.
On a quarterly basis, Inventec’s net profit dropped 16 percent from NT$1.53 billion in the previous quarter.
Chief financial officer Yu Chin-pao (游進寶) said Inventec booked NT$485 million in foreign exchange losses for last quarter, which had a big impact on its bottom line.
“We hope that currency exchanges would have a smaller impact this quarter, given that the New Taiwan dollar appears to have stabilized since the beginning of this month,” Yu said.
Yu said last quarter could represent the trough for the company in terms of revenue, which plunged 23 percent from a year ago and 21 percent from the previous quarter to NT$89.3 billion, as PC demand dwindled ahead of Microsoft Corp’s launch of the new Windows 10 operating system in July.
Inventec president Huang Kuo-chun (黃國鈞) expects notebook shipments to pick up significantly after the introduction of the new operating system.
For this quarter, the company now expects notebook and tablet shipments to grow by between 20 percent and 30 percent — down from its previous forecast of 40 percent growth — from the 3.55 million units shipped in the first quarter, Yu said.
Server sales, which account for about 25 percent of the firm’s total revenues, are expected to be flat this quarter due to a seasonal slowdown, Huang said, but added that the company remains optimistic about full-year growth because of robust demand from the US and China.
David Ho (何代水), chief executive of Inventec’s handset subsidiary, Inventec Appliance Corp (英華達), said he expects smartphone shipments to grow sequentially this quarter as its major client launches a new model.
“We maintain our annual smart device shipment goal of between 65 million and 70 million units, with 60 percent of the units being sold in the second half of the year,” Ho said.
First Capital Management Inc (第一金證券投顧) said in a note on April 22 that it expects Inventec’s consolidated revenues to grow 13.8 percent quarterly to NT$101.6 billion this quarter, driven by strong demand for servers and smartphones.
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