Elite Semiconductor Microelectronics Technology Inc (晶豪科技), whose business focuses on designing niche DRAM and flash memory chips, on Monday reported that its net profit last quarter soared 161.7 percent from a year earlier thanks to improving gross margin.
Net profit jumped to NT$280 million (US$9.47 million) during the second quarter, compared with NT$107 million in the same period last year, according to a financial statement submitted to the Taiwan Stock Exchange.
Earnings per share climbed to NT$1, from NT$0.39 a year earlier.
On a quarterly basis, net profit contracted by 10.26 percent from NT$312 million, which was a 10-year high.
Gross margin climbed to 22 percent last quarter, compared with 12.98 percent a year earlier and 19.31 percent the previous quarter, which the company attributed to price increases for DRAM and flash memory chips.
Revenue rose 5.72 percent year-on-year, but declined 12.37 percent quarter-on-quarter to NT$3.21 billion.
Elite Semiconductor, based in Hsinchu, said that replacement demand for 5G smartphones and growing popularity of “true wireless stereo” earbuds would support chip prices and shipments, despite the fallout from the COVID-19 pandemic.
Increasing demand for smart speakers is also expected to fuel growth momentum this year, the company said.
The company’s revenue from chips used in smart speakers grew 21.8 percent last year from a year earlier, it said.
Elite Semiconductor forecast an increase in full-year chip shipments and that revenue would rise slightly to surpass last year’s record-high of NT$11.98 billion.
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