LCD panel maker Innolux Corp (群創) yesterday reported an eight-quarter losing streak due to reduced working days from the Lunar New Year holidays and slack seasonality last quarter.
Losses widened to NT$4.1 billion (US$126 million) from NT$3.24 billion in the fourth quarter last year. Compared with the same period last year, losses have narrowed significantly from NT$7.77 billion.
Innolux’s average selling price dropped for the third consecutive quarter to US$263 per unit last quarter, sliding about 2.23 percent from US$269 in the fourth quarter last year.
Photo: Chen Mei-ying, Taipei Times
Innolux said the prices of TV panels climbed last quarter, benefiting from restocking demand as major sports games, including the Paris Olympics and UEFA Euro, are set to take place in the second half of this year.
Gross margin improved to 4.2 percent last quarter from 3.4 percent in the third quarter and minus- 7 percent in the first quarter of last year. Revenue shrank 5 percent quarter-on-quarter, but rose 11 percent year-on-year, to NT$50.49 billion in the first quarter.
“With the world’s three major sports events approaching, [TV vendors’] new product launches and China’s 618 promotion activities should stimulate panel demand during the second quarter,” it said yesterday, adding that factory utilization and production efficiency would be enhanced to match market changes and customer demand.
Large-sized panels, mostly used in TVs and computers, are expected to grow about 13 or 14 percent this quarter, while the average selling prices for those panels would climb about 5 percent sequentially this quarter, it said.
However, shipments of its small and medium-sized panels used in smartphones and cars are expected to drop about 7 or 8 percent on a quarterly basis, it added.
Innolux’s board of directors has approved a capital spending budget of NT$21 billion for this year, slightly lower than last year’s NT$22.5 billion.
It is accelerating its transformation efforts to expand into advanced chip packaging, auto displays and other new businesses beyond flat panels, Innolux said, adding that non-display products made up 28 percent of the company’s total revenue last year.
Innolux’s board of directors also approved a NT$10.89 billion capital reduction by canceling 1.089 billion shares, a 12 percent reduction of its total capital shares, it said, adding that the company would return NT$1.2 per share to shareholders.
After the latest adjustment, Innolux would have 7.99 billion in capital shares.
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