MiTAC Digital Technology Corp (MDT, 神達數位), the in-vehicle computer division of MiTAC Holdings Corp (神達電腦), yesterday said that its revenue in the second half of this year would exceed the first half after securing major supply contracts.
The company said it is cautiously optimistic about its business outlook for this year, reiterating its goal of achieving double-digit year-on-year revenue growth, after it secured a large order from an European vehicle fleet management system provider, MDT president Arthur Chang (張樂群 told reporters after the company’s annual shareholders’ meeting.
Under the terms of the contract, the customer would rent in-vehicle telematics equipment from MDT on a monthly billing basis, with an initial term of three years, an MDT official told the Taipei Times by telephone.
Photo: CNA
Shipments would primarily be directed the customer’s subsidiaries in North America, MDT said.
Regarding the potential impact of the 32 percent US “reciprocal” tariff, Chang said that some clients have requested the company consider relocating production to North America, with the company currently assessing the feasibility.
Some customers have opted to front-load their orders, while others have adopted a wait-and-see attitude and postponed shipments, Chang said.
MDT is in discussions with customers about how to share the tariff burden once the 90-day pause concludes, he said.
Regarding the recent sharp appreciation of the New Taiwan dollar against the US dollar, Chang said the company has managed the situation relatively well, but it still poses a challenge to its revenue growth.
The stronger local currency could reduce the company’s revenue when converted into NT dollars, he said.
MDT’s revenue last year increased 41 percent year-on-year to NT$6.98 billion (US$239 million) with 37 percent of that coming from mobility products.
Artificial Intelligence of Things (AIoT) products accounted for 34 percent, while telematics, including in-vehicle computers and related software, made up 20 percent. About 9 percent came from other products.
Net profit for the year increased 39 percent year-on-year to NT$171 million, company data showed. MDT did not propose a cash dividend for the fourth quarter of last year, as the company distributes cash dividends quarterly, unlike most local companies which pay annually.
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