Electronics component maker Lite-On Technology Corp (光寶科技) yesterday posted a better-than-expected sales result for last quarter, mainly driven by robust shipments for camera modules last month.
Revenue was NT$55.96 billion (US$1.7 billion) last quarter, a decline of 10.43 percent from last year’s NT$62.48 billion, but 4.91 percent higher than the NT$53.34 billion made in the previous quarter.
The quarterly sales were higher than Yuanta Securities Investment Consulting Co’s (元大投顧) estimate of NT$53.74 billion by 4.13 percent.
The company’s revenue totaled NT$159.18 billion in the first three quarters of this year, down 6.66 percent from a year earlier.
“Although the quarterly sales declined from a year earlier, Lite-On’s performance was better than our forecast,” a Yuanta analyst who declined to be named said by telephone.
The analyst said Lite-On’s smartphone clients launched new handset models last month, boosting the company’s camera module shipments.
In addition, PC shipments improved last month from August due to the launch of Intel Corp’s Skylake processor and Microsoft Corp’s Windows 10 operating system, benefiting Lite-On’s PC peripheral product shipments, the analyst said.
Last month Lite-On’s sales jumped 15 percent to NT$20.59 billion from a month earlier and 1.39 percent from a year earlier.
Lite-On said the revenue from its three main sectors — optoelectronics, information technology and storage — all increased from August due to growing demand from end markets.
Lite-On’s mild quarterly growth momentum should extend to this quarter, supported by stable demand in the market, the Yuanta analysts said. However, he did not see any specific growth catalyst to significantly boost the company’s sales this quarter.
“I expect the firm’s sales this quarter to slightly exceed my previous forecast of NT$56.3 billon,” he said, citing that markets for Lite-On’s core businesses, such as power supplies and PC peripherals, which have matured and are not expected to see exciting growth going forward.
Although the company’s camera module business accounts for the second-largest share in the Chinese market, its relatively weak production efficiency drags its competitiveness in the market, the analyst said.
“Lite-On is a large company with a complicated organization and many product lines,” he said. “It could be hard for the firm to gain significant growth in overall revenue.”
“However, Lite-On can move to improve its profitability if it is willing to carry out corporate restructure and improve its efficiency,” he said.
Lite-On shares rose 0.63 percent to NT$32.1 in Taipei trading yesterday, underperforming the TAIEX, which gained 1.2 percent.
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