Industrial computer manufacturer Advantech Co (研華) yesterday said revenue for this quarter would likely slide 1.2 to 4.8 percent from last quarter’s NT$15.51 billion (US$556.85 million) due to component shortages.
Gross margin is expected to come in at 36.5 to 38.5 percent, compared with the previous quarter’s 37.6 percent, it said.
The component shortages have plagued the electronics industry this year amid recovering global demand. While the problem is improving, it is still an issue for the industry, the company said.
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As a result, Advantech expects an estimated US$40 million to US$50 million of its orders to be deferred to the first quarter of next year.
The company said power rationing in China would not directly affect the operations of its plant in Kunshan, but might cause supply chain disruptions.
The company said more customers are willing to sign longer contracts or advanced contracts to guarantee delivery, and less than 20 percent of them are placing repeat orders, it added.
The company’s book-to-bill ratio in the third quarter was 1.45, compared with 1.55 in the first three quarters, the company said.
In the July-to-September quarter, Advantech reported net profit of NT$2.27 billion, up 17 percent from a year earlier. Earnings per share (EPS) were NT$2.95.
For the first three quarters, net profit totaled NT$5.98 billion, up 8 percent year-on-year, with EPS of NT$7.74.
Separately, computer peripheral maker Chicony Power Technology Co (群光電能) yesterday reported record net profit of NT$820 million for the third quarter, up 11.9 percent year-on-year.
Profit for the first three quarters grew 32.4 percent to NT$2.06 billion from a year earlier.
EPS were NT$2.09 in the three months to September and were NT$5.26 for the first nine months of the year, up 20.8 percent year-on-year, beating market expectations.
The company said orders for this quarter would be about the same as last quarter, with major growth momentum coming from high-wattage laptops and servers.
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