MediaTek reaches 39-month sales high on China demand
May 9, 2013, 12:08 am TWN
TAIPEI--MediaTek Inc., one of Taiwan's leading integrated circuit (IC) designers, said Wednesday that its consolidated sales for April hit a 39-month high on the back of solid demand from China.
MediaTek posted NT$12.57 billion (US$426 million) in consolidated sales for the month, up 33.32 percent from the previous month, a record high since January 2010, when its consolidated revenue stood at NT$13.58 billion.
The April figure was also up 58.28 percent from a year earlier.
The April sales showed that the IC designer benefited from solid demand from China as high-tech gadget suppliers there restocked their inventories in preparation for a buying spree ahead of the May 1 Labor Day holiday.
According to Grand Cathay Securities, China accounted for about 70 percent of MediaTek's total sales in the first quarter, serving as a driver of the IC designer's growth, due to rising demand for smartphone chips.
In the first four months of this year, MediaTek's consolidated sales totaled NT$36.55 billion, up 32.62 percent from a year earlier.
In an investor conference held May 6, MediaTek said it expects its consolidated sales for the April-June period to range between NT$30 billion and NT$31.6 billion, representing an increase of 25-32 percent from a quarter earlier.
The upbeat sales forecast for the second quarter indicated that MediaTek has left behind the traditional slow season effects of the first quarter, market analysts said.
They added that it is possible that MediaTek's sales in May will fall from April, and based on the company's second quarter guidance, sales in the May-June period are expected to range between NT$8.7 billion and NT$9.5 billion per month on average.
After MediaTek's second guidance, CLSA Asia-Pacific Markets upgraded a recommendation on Mediatek shares to "buy" from "sell," while raising a target price on the stock to NT$450 from NT$285.
The brokerage said it has also hiked its forecasts for MediaTek's earnings per share by 10 percent and 16 percent in 2013 and 2014, respectively, to NT$18.34 and NT$22.43.
Shares of MediaTek closed up 1.35 percent at NT$376.00 on the Taiwan Stock Exchange Wednesday.