MediaTek’s third quarter sales beat expectations
MediaTek Inc. ( ) , one of Taiwan’s leading integrated circuit designers, reported third quarter sales on Wednesday that exceeded expectations, driven by higher- than- expected global demand for smartphone chips.
Analysts said MediaTek was one of the beneficiaries of inventory buildups by smartphone vendors in September to be prepared for an anticipated jump in sales during mainland China’s seven-day Oct. 1 National Day holiday.
During the July-September period, MediaTek posted NT$56.96 billion ( US$ 1.74 billion) in consolidated sales, up 21.08 percent from a quarter earlier, the IC designer said in a statement.
The third quarter sales also came in higher than the company’s sales guidance of between NT$51.7 billion and NT$55.5 billion for the quarter.
In September alone, MediaTek’s consolidated sales rose 5.43 percent from a month earlier to NT$ 20.04 billion, the third highest monthly revenue in the company’s history.
The only better showings were sales of NT$21.60 billion in October 2014 and NT$20.40 billion in sales in March 2015, the figures showed.
The September figure was also 8.06 percent higher than that of a year earlier, MediaTek said.
Buttressed by the better-thanexpected sales figures, MediaTek shares rose 5.31 percent to close at NT$ 258.00 on the Taiwan Stock Exchange on Wednesday, helping MediaTek shares climb out of their recent doldrums.
The weighted index on the main board ended up 1.20 percent.
The company’s stock had come under pressure recently amid concerns over rising competition in China’s smartphone market and fears over slowing growth in the global smartphone market, they said.
Smartphone chips are the major source of MediaTek’s sales and account for more than 60 percent of the company’s total revenue, according to a market estimate.
Despite MediaTek’s strong September, its consolidated sales in the first nine months of 2015 were still down 3.85 percent from the same period a year earlier to NT$ 151.54 billion.
Looking ahead, analysts said MediaTek is expected to feel the pinch of slow season effects in the fourth quarter at a time when the global semiconductor sector will undergo inventory adjustments.
MediaTek has forecast that sales for 2015 as a whole will be down 5-10 percent from a year earlier.