Electronic payment terminal maker Castles Technology Co (虹堡科技) yesterday said that the launch of new products this quarter is expected to boost revenue growth in the second half of the year.
Many of its clients — primarily financial institutions and payment service providers — are expected to upgrade to new Android-based smart payment terminals offering enhanced security and greater operational flexibility, the company said in its annual report.
The company’s products mainly comprise mobile point-of-sale devices, electronic funds transfer at point-of-sale terminals and PIN pad terminals, according to its Web site.
Photo: Meryl Kao, Taipei Times
About 95 percent of its revenue comes from overseas, with Europe accounting for the largest share, followed by Japan, Castles Technology chief operating officer Sharon Huang (黃佳華) told reporters after the company’s annual shareholders’ meeting in Taipei.
The equipment upgrade begins this quarter at some key clients such as 7-Eleven operator President Chain Store Corp (統一超商), Taiwan FamilyMart Co Ltd (全家便利商店) and Chunghwa Post Co’s (中華郵政) iBox payment machines, Huang said.
Several banks are expected to adopt the new products after the completion of pilot and verification tests, she said.
At an earnings conference in April, the company said that it had invested heavily in establishing production facilities in Taiwan, including surface-mounted technology assembly lines, amid ongoing trade tension between the US and China.
The assembly lines are operating at about 80 percent of capacity, and the company would consider adding new lines if necessary, Huang said.
Sales from the Latin American market are expected to pick up later this year, while growth in Southeast Asia is likely to be slower, Castles Technology chairman Kevin Hsin (辛華熙) said.
Second-quarter revenue is expected to surpass the first-quarter level, with sales in the third quarter likely to be slightly better than the second, Hsin said, adding that the outlook for the company’s orders and operations over the next two to three years remains positive.
Amid price competition and industry transformation, the company’s strategy is to enhance development capabilities and system integration, and offer flexible pricing solutions tailored to different market segments to meet client needs, he said.
Shareholders yesterday approved the company’s proposal to distribute a cash dividend of NT$2.5 per share, the highest in its history.
Revenue last year dipped 2.73 percent year-on-year to NT$7.8 billion (US$264.1 million), while net profit reached NT$717.39 million, down 22.98 percent year-on-year. Earnings per share were NT$6.35.
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