Asustek profit rises on lower expenses
The PC vendor reached the 4% operating margin target it announced in March ahead of schedule, thanks to cost control and better operational efficiency
Asustek Computer Inc (華碩) yesterday reported 39 percent quarterly growth in net profit for the first quarter of the year, the company said.
The PC vendor reached its 4 percent operating margin target ahead of its schedule, thanks to stringent cost control and improved operational efficiency, it added.
Operating margin rose to 4.1 percent during the quarter ending March 31, compared with 2.1 percent in the previous quarter and minus-3.6 percent a year earlier, Asustek said.
This was the highest in eight quarters, Asustek added.
The company aimed to lift its operating margin to 4 percent by the end of this year, Asustek said in March.
“We have worked hard to optimize several financial metrics including revenue, cost and expense, and are glad to see operating margin hit the 4 percent level earlier than expected,” Asustek chief financial officer Nick Wu (吳長榮) told a virtual investors’ conference yesterday.
The firm expects its operating margin to stay at 4 percent this quarter and looks at further improvement in the second half of the year, aided by new product launches, Wu said.
Asustek’s net profit last quarter surged to NT$5.45 billion, compared with NT$3.93 billion in the previous quarter and reversing a loss of NT$1.68 billion the previous year.
Earnings per share were NT$7.3, up from NT$5.3 the previous quarter.
The firm had posted losses per share of NT$2.3 a year earlier.
This quarter’s PC revenue is expected to grow 10 percent to 15 percent from last quarter’s, Wu said.
Last quarter, PC and smartphone revenue increased 5 percent amid sluggish demand, although channel inventory returned to a healthy level, he said.
The company expects component revenue this quarter to be flat, he said.
Asustek said it is confident about its business outlook, as the company plans to launch a series of artificial intelligence (AI) PCs later this month.
AI PCs are expected to make up at least 50 percent of the global
PC market in 2026, a rapid uptake from just several million units shipped this year, the company said.
“We are optimistic about this AI revolution and believe AI PCs will fuel the next wave of growth for the industry and Asustek as well,” Asustek cochief executive officer S.Y. Hsu (許先越) said yesterday.
Another growth driver is AI servers, which would see multiple revenue growth from the same period last year, Asustek said.
The company is an ecosystem partner of Nvidia Corp for its new AI GPU GB200.
AI servers accounted for 70 to 80 percent of Asustek’s total server shipments, but servers made up less than 10 percent of the company’s overall revenue, Asustek added.