Networking chip designer Realtek Semiconductor Corp (瑞昱) yesterday said it posted a net profit of NT$1.92 billion (US$63 million) for last quarter, a 36 percent increase year-on-year and an all-time high, thanks to robust demand for chips used in TVs, Ethernet controllers and PC cameras.
Revenue increased 33 percent to NT$16.04 billion, with PC-related chips contributing 30 percent, slightly higher than the 28 percent in the second quarter.
Earnings per share rose to NT$3.78 last quarter, from NT$2.78 the previous year and NT$3.63 the previous quarter.
Photo: Hung Yu-fang, Taipei Times
Gross margin shrank to 42.9 percent from 44.3 percent in the second quarter and 47 percent in the third quarter last year, as the company shipped more TV chips, which have a gross margin lower than the company average.
The company usually posts its highest revenue in the third quarter of a year, Realtek spokesman Huang Yee-wei (黃依瑋) told a investor conference in Hsinchu.
However, Realtek said it expects revenue to drop mildly sequentially in the fourth quarter as the industry enters its low season and the ongoing US-China trade dispute adds some risks.
“Overall, we are cautiously optimistic about the fourth quarter,” Huang said. “We feel market and customer demand for Realtek products is there, which is a vital factor for Realtek’s operations.”
“The major trends are positive for us,” he said. “No sharp sequential decline is expected in the fourth quarter.”
Demand for chips used in wireless networks and earphones is to increase, while that for lower-margin chips for TVs and PC cameras would lessen following the end of peak season, Huang said.
Realtek is accelerating its exposure to mid and high-end wireless earphones in response to a cutthroat price war in the low-end segment, he said.
“As a growing number of devices are to be connected to the Internet during the 5G era, demand for Realtek’s chips for Internet of Things and WiFi devices should increase accordingly,” he added.
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