Electronic components supplier Lite-On Technology Corp (光寶科技) posted the best quarterly net profit in its history last quarter at NT$4.56 billion (US$140.63 million), as gross margin improved thanks to an increase in shipments of better-margin power supplies for artificial intelligence (AI) servers and cloud-computing data centers, it said yesterday.
Last quarter’s net profit rose 9 percent sequentially from NT$4.2 billion, or 7 percent annually from NT$4.24 billion. Earnings per share rose to NT$1.99 last quarter from NT$1.84 in the second quarter and NT$1.86 last year.
That was despite the company’s revenue growth falling short of expectations as high inflation, geopolitical tensions and a weak macroeconomy dampened consumer spending during the quarter ending Sept. 30, Lite-On said.
Photo: Fang Wei-chieh, Taipei Times
Revenue last quarter experienced sub-seasonal growth, Lite-On said.
However, the firm’s gross margin grew to an all-time high of 23.6 percent last quarter from 23.3 percent a quarter earlier and 19.5 percent a year earlier, which it attributed to optimized product portfolios.
Lite-On’s operating profit margin improved to 11.6 percent from 9 percent in the second quarter and from 9.5 percent a year earlier.
The company said it expects revenue to grow at a mild pace this quarter, compared with NT$39.96 billion last quarter, as demand for components used in notebook computers and some consumer electronics started to pick up slightly.
“Business in the fourth quarter should be relatively lukewarm compared with the company’s records in the past,” Lite-On president Anson Chiu (邱森彬) told investors yesterday.
“Overall, we are relatively optimistic about the company’s ability to register a stable growth in revenue and profit during the fourth quarter, though the macroeconomic outlook remains bleak,” Chiu said.
This quarter’s main growth drivers would be high-margin power supplies used in cloud-computing servers and automotive devices, Chiu said.
US auto workers and automakers are resolving their conflicts and the supply of graphics processing units used in AI servers is improving, which would help fuel some demand this quarter, he added.
Demand for information and communications technology and consumer electronics have apparently bottomed out, Chiu said.
Notebook computer sales expanded year-on-year in the third quarter, while desktop computer sales would post an annual increase in the first quarter of next year, he added.
Lite-On expects revenue for this year to hold steady compared with last year, Chiu said.
Next year, the company is pushing for mergers and acquisitions to stimulate revenue growth, he added.
Lite-On said it is deploying two production lines in Dallas, Texas, which would contribute NT$2 billion in revenue next year, Chiu said.
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