Electronic component maker Lite-On Technology Corp (光寶科技) last week reported better-than-expected profit margins and earnings per share for last quarter, thanks to a better product mix, strict operating expense control and effective inventory management, the company said.
Lite-On also announced that Raymond Soong (宋恭源) and Warren Chen (陳廣中) have resigned as chairman, and vice chairman and group chief executive officer, respectively, with Tom Soong (宋明峰) elected as chairman by the board of directors and Anson Chiu (邱森彬) appointed to serve as president, with effect from Saturday.
Tom Soong is the son of Raymond Soong, while Chiu formerly served in the company’s optoelectronics branch.
Photo: Chen Jou-chen, Taipei Times
Lite-On reported a gross margin of 19.41 percent last quarter, with operating margin hitting 8.72 percent and earnings per share rising to a record high of NT$1.48.
Net income increased 119.15 percent quarter-on-quarter and 43.9 percent year-on-year to NT$3.45 billion (US$116.9 million), according to the company’s financial statement released after its quarterly earnings conference last week.
With more contributions from its cloud computing, PC and optoelectronics businesses, the company’s revenue for last quarter reached NT$41.796 billion, a quarterly increase of 28.3 percent, the statement said.
The increase in sales exceeded the company’s forecast of 18 percent and was carried by strong demand from its cloud computing, notebook, 5G and artificial intelligence of things (AIoT) businesses.
However, last quarter’s revenue was still down 6 percent from a year earlier due to difficulties in supply chain management amid the COVID-19 pandemic.
By segment, the information technology unit remained Lite-On’s biggest business with a sales contribution of 68 percent last quarter. Its optoelectronics unit accounted for 17 percent of sales, and the storage unit contributed to 11 percent of sales, company data showed.
“Lite-On once again posted upbeat results in the second quarter. We believe it can repeat its solid performance going forward on the back of steady demand growth for cloud computing, 5G and AIoT, as well as continued operating expense control and improving factory efficiency aided by more automation equipment,” Yuanta Securities Investment Consulting Co (元大投顧) analyst Tate Chen (陳德穎) said in a note on Friday.
In the first half of the year, the company’s revenue dropped 13.16 percent annually to NT$74.37 billion. Gross margin increased 2.8 percentage points to 17.3 percent, and operating margin rose 1.8 percentage points to 5.9 percent.
That resulted in net income jumping 30 percent to NT$5.02 billion, with earnings per share of NT$2.16.
In the third quarter, Lite-On expects its optoelectronics, cloud computing, 5G, AIoT and gaming businesses to grow more than in the second quarter, with demand for products related to the PC sector likely to remain stable.
POOR INTERNAL CONTROLS: Insurance Bureau Director-General Shih Chiung-hwa said the company is expected to get back on track while its chairman is suspended The Financial Supervisory Commission (FSC) yesterday fined Shin Kong Life Insurance Co (新光人壽) NT$27.6 million (US$939,415) for a reckless investment that endangered its solvency, and suspended its chairman Eugene Wu (吳東進) for poor supervision. The penalty is the second-highest in a single case after Nan Shan Life Insurance Co (南山人壽) was fined NT$30 million in September last year and its chairman Du Ying-tzyong (杜英宗) suspended for two years, the commission said. In three rounds of special and regular examinations conducted since last year, the commission found that Shin Kong Life had given too much power to an asset and liability management committee
Tesla Inc is planning to ship vehicles made at its Shanghai Gigafactory to other markets in Asia and Europe, people familiar with the matter said, as the company looks to realize its plan to reduce shipping costs and manufacture vehicles closer to customers. China-built Tesla Model 3s intended for delivery outside China would likely start mass production in the fourth quarter of the year, the people said, asking not to be identified because the details are private. They said the markets targeted include Singapore, Australia and New Zealand, as well as Europe, where customers currently have to wait for a Tesla to
Continental AG, which makes control units for Daimler AG cars, cannot pursue antitrust claims against a group of patent owners, including Qualcomm Inc, which are seeking royalties on telecommunications technology, a federal judge in Texas ruled. Avanci LLC, a licensing pool formed by Qualcomm, Nokia Oyj, Sharp Corp and other owners of patents on technology standards, is not breaching antitrust laws when it negotiates license agreements with automakers rather than the component makers, Barbara Lynn, chief district judge for the Northern District of Texas, said in dismissing the suit in a decision posted on Friday. The licensing group charges US$15 per vehicle
Nano-X Imaging Ltd, a start-up founded by Israeli investor Ran Poliakine, is joining forces with South Korean chipmaker SK Hynix Inc to build a machine that could disrupt a century-old X-ray industry. Valued at about US$2 billion after listing on the NASDAQ last month, Nano-X is seeking to transform a multibillion-dollar industry that has essentially relied on the same technology since Nobel Prize in Physics winner Wilhelm Roentgen discovered X-rays in the late 19th century. Nano-X’s device uses semiconductors instead of metal filaments to generate X-rays. The backing of SK Hynix, the world’s second-largest maker of memory chips, is a boost for