Electronic components supplier Lite-On Technology Corp (光寶科技) yesterday reported that net profit last quarter fell 4 percent year-on-year to NT$2.99 billion (US$103.37 million), from NT$3.11 billion in the same period last year.
That translated into earnings per share (EPS) of NT$1.29, down from NT$1.34 a year earlier. On a quarterly basis, net profit contracted 13 percent from NT$3.45 billion, or EPS of NT$1.48, in the second quarter.
Gross margin increased to 19 percent from 16.2 percent in the third quarter last year, which was a decline from 19.4 percent in the second quarter.
Photo: Chen Rou-chen, Taipei Times
Operating profit for the third quarter grew 23 percent year-on-year to NT$3.99 billion from NT$3.35 billion, as the company recognized a substantial asset impairment loss.
‘NO IMPACT’
“In surveying the current state and likely future trends of the global CD-ROM reader industry, we have decided to recognize a goodwill impairment of about NT$700 million,” the company said in its revenue statement.
The impairment would have “no impact” on cash flow or revenue, the statement added.
Lite-On president Anson Chiu (邱森彬) said that he sees the work-from-home trend continuing through the first half of next year.
“As long as COVID-19 is still around, the demand [for work-from-home equipment] would still be around,” Chiu said, adding that “we will continue to see double-digit percentage growth in revenue from laptop-related products in the fourth quarter on a year-on-year basis.”
‘GOOD NEWS’
He is also optimistic that Lite-On’s automotive and 5G-related product categories would see positive movement next year.
Chiu also said there would be “good news” for the company’s 5G base stations in the first quarter next year.
Lite-On’s automotive products would also start contributing more seriously to revenue, he added.
“As Lite-On sheds underperforming departments, we expect gross margin and operating profit margin to keep improving in the fourth quarter on a year-on-year basis,” Chiu said.
Third-quarter revenue fell 14 percent to NT$41.33 billion from NT$48.16 billion in the third quarter last year.
Cumulative net profit for the first three quarters was NT$8.01 billion, a 15 percent increase year-on-year.
EPS for that period were NT$3.45, up from NT$3 from a year earlier.
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