Contract electronics manufacturer Inventec Corp (英業達) yesterday forecast revenue would continue to grow next year, saying that sales of notebook computers, servers and smart devices are expected to surpass this year’s levels.
The company expects its notebook computer sales to increase by a single-digit percentage next year, driven by replacement demand following Microsoft Corp’s end of service for its Windows 10 operating system, while revenue contribution from artificial intelligence (AI) PCs is also expected to materialize, Inventec president Jack Tsai (蔡枝安) told an earnings conference in Taipei.
Inventec also aims to grow its server sales by a double-digit percentage, while smart device business is expected to expand by a single-digit percentage next year, Tsai said.
Photo: Fang Wei-chieh, Taipei Times
Notebook computers accounted for 51 to 55 percent of Inventec’s revenue in the third quarter, followed by servers at 41 to 45 percent and smart devices at 1 to 5 percent, the company said.
Shipments of AI servers have increased 40 percent from last year’s level and account for 40 to 50 percent of total server revenue, Tsai said.
Inventec is a major assembly partner of the so-called “level 6” and “level 10” servers for Dell Technologies Inc, HP Inc and Lenovo Group Ltd (聯想).
Most servers shipped by Inventec this quarter are those running on Nvidia Corp’s B200 HGX chips, Tsai said.
Next year, shipments of AI servers — including those equipped with Nvidia and Advanced Micro Devices Inc chips, as well as other models powered by application-specific integrated circuits — are expected to continue growing and account for more than 50 percent of the company’s server revenue, he said.
Inventec’s notebook computer and server shipments this quarter are likely to edge down from last quarter and return to levels seen in the first quarter, as customers pulled in orders earlier in the year amid tariff uncertainties, Tsai said.
The company reported that third-quarter net profit soared 24.65 percent from the previous quarter to NT$2.73 billion (US$87.92 million), and climbed 36.7 percent year-on-year.
Earnings per share increased to NT$0.76 from NT$0.61 from the prior quarter and from NT$0.56 the previous year, it said.
Revenue last quarter decreased 5.6 percent quarterly, but climbed 7.57 percent annually to NT$176.29 billion, a record for the period.
Gross margin fell to 5 percent from 5.1 percent last quarter and 5.3 percent a year earlier, but the figure is likely to improve to above 5 percent this quarter, Inventec chief financial officer Yu Chin-pao (游進寶) said.
Inventec reported net profit of NT$6.62 billion in the first nine months of the year, up 35.22 percent year-on-year, with earnings per share of NT$1.85 over the period.
Cumulative revenue in the first three quarters increased 15.92 percent to NT$519.9 billion, while gross margin rose 1 percentage point to 5.3 percent.
Capital expenditure this year is expected to range between US$400 million and US$450 million, mainly due to expansion in Thailand and the US, and up to NT$500 million next year, Yu said.
Cairo’s new monorail slices across the city skyline, running above the familiar chaos of blaring horns and aging buses’ exhaust fumes that mark rush hour below. The US$4.5 billion monorail, opened this month, is among Egypt’s most prominent new transport projects, part of a debt-funded infrastructure drive criticized for sapping state finances while bringing limited benefits to most of the country’s 109 million people. “It feels like you’re in a different country,” said Ramy Sayed, a restaurant manager, aboard a driverless Innovia 300 train. “No noise, no traffic, we’re not used to this.” The eastern line runs 56km from the bustling middle-class
Starlux Airlines Co (星宇航空) today unveiled a long-haul network expansion plan at a shareholders’ meeting in Taipei, including direct flights to Barcelona, Spain, and Zurich, Switzerland, as well as a service connecting Taipei, Sydney and New Zealand. Starlux is to become the first Taiwanese carrier to offer non-stop services to the two European cities, while the inaugural oceanic route is expected to expand transit opportunities within the Australia-New Zealand market, Starlux said. Flight services to Chicago, Dallas, Washington and New York are under evaluation, the airline added. Prior to the shareholders’ meeting, the airline earlier this year announced that it would be
Taiwanese firms have increased investment in the Philippines in recent years as Manila’s ties with Washington deepen and global supply chains continue to shift away from China, an expert at the Chung-Hua Institution for Economic Research (CIER, 中華經濟研究院) said yesterday. The Philippines had not been among Taiwanese investors’ top choices in Southeast Asia, CIER Taiwan ASEAN Studies Center director Kristy Hsu (徐遵慈) said at a seminar in Taipei. However, Taiwan’s investment in the country has grown significantly since the COVID-19 pandemic, reaching US $257 million last year, a high in recent years, she said. Although Taiwan’s total investment in the Philippines still lags
Intel Corp regards Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) as a longstanding partner, as the US chipmaker would continue outsourcing production of advanced chips to TSMC, Intel chief executive officer Lip-Bu Tan (陳立武) said yesterday. “I don’t look at people as competitors. I look at the collaboration... Nvidia is also, you know, a good friend,” Tan told a news conference following his keynote speech at the Computex trade show in Taipei. “It’s a very trusted partnership for us... We are a big, top customer for them, and we’re going to continue doing that,” he said, referring to TSMC, the world’s largest foundry
RSS