Microcontroller unit (MCU) designer Holtek Semiconductor Inc (盛群半導體) yesterday reported that net profit last quarter surged 48 percent annually, marking its best first-quarter performance, thanks to higher prices and product demand.
Net income expanded to NT$512.29 million (US$17.44 million) in the quarter ending March 31, compared with NT$347.2 million a year earlier. That represented quarterly growth of 10 percent from NT$467.62 million.
Earnings per share rose to NT$2.27 last quarter, from NT$1.54 in the first quarter of last year and NT$2.07 in the preceding quarter.
Photo: Vanessa Cho, Taipei Times
Gross margin climbed to 51.5 percent last quarter from 47.8 percent a year earlier, which it attributed to higher MCU prices. That was a decline from 52.3 percent in the final quarter of last year.
Holtek said it is cautiously optimistic about its outlook this quarter, shrugging off the effects from China’s COVID-19 lockdowns and a supply chain inventory correction.
Revenue this quarter is expected to change little, compared with last quarter’s NT$1.92 billion, Holtek sales vice president Armstrong Tsai (蔡榮宗) told a virtual investors’ conference in Taipei.
Holtek still has order backlogs to meet next quarter, he said.
Foundry price increases are to affect its gross margin this quarter, but no additional increases are expected, he said.
Holtek is upbeat about its business growth prospects for the year, as customer demand remains healthy, he said.
The company has so far received orders representing 85 percent of capacity, he said.
Holtek expects MCUs used in healthcare devices and brushless DC motors, including garden tools and sewing machines, to be the main drivers of growth.
Shipments of MCUs for healthcare devices such as oximeters surged 87 percent year-on-year to 15 million units during the first quarter, while those for brushless DC motors soared 57 percent to 7 million units, the company said.
The company has also received new orders to supply lower-density 32-bit MCUs, mainly used in for gaming computers, as that market’s major suppliers were affected by capacity constraints, he said.
Healthcare and brushless DC motors MCUs accounted for 13 percent and 3 percent of the company’s revenue last quarter respectively. MCUs used in home appliances are the biggest revenue contributor, at 28 percent.
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