Handset camera lens maker Genius Electronic Optical Co (玉晶光) yesterday said that it is looking to metaverse-related optical products as a future engine for growth as sales of smartphones are softening.
The company, which counts Apple Inc among its major customers, told an investors’ conference that it has started shipping some lenses for metaverse-related gadgets and that it hopes to start mass production by next year.
“Metaverse-related products will contribute to our revenue growth next year,” Genius Electronic chairman Jones Chen (陳天慶) said.
Photo: David Chang, EPA-EFE
“The exact quantity and specifications will depend on our clients’ needs,” he said.
The fourth quarter of this year and the first quarter of next year are looking to be “stronger than usual,” Chen said, citing the company’s order visibility.
“With the industry migrating toward multi-lenses and larger CMOS sensors, clients’ demand for our products will keep on growing,” he said. “We have to keep up with clients’ latest specifications to increase our market share.”
Metaverse-related products have been a popular theme for investors of late.
Genius Electronic is currently focusing on the virtual reality (VR) segment, while augmented reality (AR) products might follow in three years, company president Lee Kuo (郭英理) said.
“Optical equipment is at the heart of the metaverse. A mid-range VR device will typically require six to eight cameras to detect distance, as well as do eye-tracking,” Kuo said.
Kuo added that he is confident Genius Electronic can fulfill customers’ demand for this challenging new field.
“If they can write the specs, whether it’s for AR or VR, we will rise up to the challenge,” he said.
Kuo sees some economic challenges ahead.
“Inflation is going to come, while COVID-19 will remain with us. What is within our control is to raise our production yield and hopefully increase our gross margin,” he said.
The company reported that net profit decreased 7.26 percent year-on-year to NT$974.75 million (US$35.06 million) in the third quarter, although revenue increased 14.09 percent to NT$5.92 billion.
Earnings per share (EPS) were NT$8.71, down from NT$9.44 a year earlier.
Chen attributed the lower earnings to the New Taiwan dollar’s appreciation and falling prices for its older products.
The company also needs to improve production yields on new products, he added.
Revenue for this quarter and next quarter would depend on client demand, while profit would depend on whether the company could increase its yields, he said.
“It is hard to give an estimate right now,” Chen said.
In the first three quarters of the year, revenue edged up 0.42 percent to NT$11.02 billion, but net profit fell 33.29 percent year-on-year to NT$1.38 billion, or EPS of NT$12.27, company data showed.
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