Tai­wan as­sem­bler Pe­ga­tron’s quar­terly profit tops es­ti­mates thanks to non-op­er­at­ing gains

The China Post - - TAIWAN BUSINESS -

Tai­wan’s Pe­ga­tron Corp. ( ), a key sup­plier for Ap­ple Inc.’s iPhones, re­ported on Mon­day a sharp year-on-year rise in quar­terly profit, top­ping ex­pec­ta­tions, pow­ered by non-op­er­at­ing gains from as­set dis­posal and in­ter­est.

The com­pany’s sec­ond-quar­ter net in­come grew 211 per­cent from a year ear­lier to NT$4.656 bil­lion (US$147 mil­lion) with earn­ings per share (EPS) of NT$1.82, which ex­ceeded mar­ket ex­pec­ta­tions of be­tween NT$1.3 and NT$1.4.

Pe­ga­tron’s non-op­er­at­ing in­come was NT$1.535 bil­lion in the April-June quar­ter, an in­crease of 176 per­cent from the same pe­riod of last year.

The com­pany posted sec­ond- quar­ter rev­enue of NT$218 bil­lion, down 21 per­cent from the pre­vi­ous quar­ter but up 2.6 per­cent from a year ago, which chief fi­nan­cial of­fi­cer Charles Lin at­trib­uted to “prod­uct tran­si­tion dur­ing the low sea­son and weaker-than-ex­pected de­mand for note­books.”

Driven by bet­ter de­mand, rev­enue from com­mu­ni­ca­tion de­vices grew by 42 per­cent year-on-year and their con­tri­bu­tion to rev­enue in­creased to 54 per­cent from 39 per­cent in the same pe­riod of 2014, Lin said.

Re­flect­ing the chal­leng­ing PC in­dus­try, how­ever, rev­enue from the com­put­ing seg­ment de­clined by 32 per­cent year-onyear, while that of con­sumer elec­tron­ics de­vices, which in­clude tablets and gam­ing con­soles, fell by 28 per­cent year-onyear due to con­tin­u­ous weaker de­mand for tablets, he added.

Lin said Pe­ga­tron ex­pects its notebook ship­ments to grow by “high sin­gle dig­its” in the third quar­ter and ship­ments of moth­er­boards and desk­top PCs to grow by “mid sin­gle dig­its,” while rev­enue from the non-com­put­ing seg­ment is forecast to grow by 20-30 per­cent.

Shares in Pe­ga­tron ended up 4.09 per­cent at NT$86.5 Mon­day on the Tai­wan Stock Ex­change be­fore its earn­ings an­nounce­ment.

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