Asustek Computer Inc (華碩) yesterday forecast lower revenue for this month and weak growth momentum for this quarter, as well as slashing its shipments target for notebook computers this year due to weaker-than-expected demand.
“It is a rare situation for notebook demand during the peak season to be not as strong as in past years,” Asustek chief financial officer David Chang (張偉明) said in a statement.
Chang said the company sold 4.3 million notebook computers last quarter, missing its target of 4.5 million units, which it set in May. The company shipped 4.8 million notebook computers in the first quarter of this year.
In the April-to-June quarter, Asustek’s consolidated revenue totaled NT$108.4 billion (US$3.47 billion), up 3.05 percent from NT$105.19 billion a year earlier. On a quarterly basis, the figure dropped 3.12 percent from NT$111.88 billion, still better than Credit Suisse Group AG’s estimate of a 5 percent decline.
For this quarter, Asustek expects notebook shipments to grow from last quarter’s 4.3 million units, but the growth momentum will not be strong, Chang said.
Revenue for this month might drop by double-digit percentage points from last month’s NT$41.68 billion, an Asustek executive who declined to be named told the Taipei Times.
This quarter’s sales might grow about 10 percent from last quarter’s NT$108.4 billion, but the increase would be weaker than the company’s historical pattern, with the third quarter typically being a high season, the executive said.
Asustek saw a 17.79 percent quarterly growth in sales in the third quarter last year, according to company data.
Chang said that the company would start shipping notebook computers running Microsoft Corp’s Windows 10 operating system later this month.
However, Asustek plans to ship only a small volume to begin with, to see if the new operating system spurs replacement demand, he added.
Chang said due to the overall soft demand in the PC industry, Asustek now expects to ship 20 million notebook computers this year, down 12.8 percent from a previous estimate of 22.8 million units. The company shipped 20.3 million notebook computers last year.
However, the company is upbeat about the outlook for its smartphone business, with its annual shipments forecast remaining unchanged at 17 million to 25 million units, Chang said.
Asustek shares dropped 3.34 percent to NT$289 in Taipei trading yesterday, underperforming the TAIEX, which lost 2.96 percent.
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