Elan Microelectronics Corp (義隆), which supplies touch-panel controller chips, yesterday said that revenue this quarter would grow modestly from last quarter, when sales surged to an all-time high of NT$3.54 billion (US$120 million), due to coronavirus-induced telecommuting and remote learning demand.
Revenue this quarter will likely reach NT$4.6 billion to NT$4.8 billion, which would be sequential growth of 29.94 to 35.59 percent, the company said.
That compared with a quarterly increase of 60.4 percent for last quarter.
“Stay-at-home orders have created a new segment for the notebook computer market on top of the ordinary replacement demand. Global notebook brands have raised their sales target for 2020, as overall demand continues to grow substantially, which we believe will drive the notebook market to grow noticeably on an annual basis,” Elan said in a statement.
“Robust demand in the third quarter will drive Elan’s shipments of touchpad and touchscreen controller chips to a higher level,” the company said.
“Nevertheless, we cannot meet all of the demand in a short period, despite aggressively striving to expand our supply capabilities. The issue of undersupply, which emerged in the second quarter, is expected to continue in the second half of the year,” it added.
Elan’s remarks came after it released its second-quarter results, showing that net profit was NT$918 million, or earnings per share (EPS) of NT$3.15.
The figures compared with net profit of NT$54 million, or EPS of NT$0.18, in the previous quarter and marked their second-highest level on record.
Gross margin reached 47.6 percent last quarter, up from 47.3 percent in the previous quarter, which the company attributed to an improved product mix and rising contributions from high-margin products.
Gross margin is likely to be 47 to 48 percent this quarter, Elan said.
In the first half of the year, cumulative revenue grew 41.5 percent year-on-year to NT$5.75 billion, as the company’s shipments of chips for touchpads, touchscreen controllers, fingerprint sensors and pointsticks rose in the second quarter due to higher demand for laptops and tablets, the company said.
Net profit for the first half came in at NT$972 million, up from NT$829 million a year earlier, with EPS rising from NT$2.85 to NT$3.33, it said.
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