Me­di­aTek’s third quar­ter sales beat ex­pec­ta­tions

The China Post - - TAIWAN BUSINESS -

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.

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