MediaTek August sales hit benchmark
September 7, 2013, 12:03 am TWN
TAIPEI -- MediaTek Inc., one of Taiwan's leading integrated circuit designers, said its consolidated sales for August ranked third-highest in the company's history, although the figure was slightly down from July.
In August, MediaTek's consolidated sales totaled NT$12.75 billion (US$426 million), behind only NT$13.58 billion recorded in January 2010 and NT$13.22 billion registered in July 2013.
The August sales were down 3.56 percent from a month earlier on a relatively high comparison base in July, but demand for smartphone chips remained strong, which maintained the August sales at a high level, market analysts said. The August figure was up 38.31 percent from a year earlier.
In July, MediaTek's consolidated sales rose more than 35 percent from the previous month.
Analysts said that judging from MediaTek's sales for July and August, which totaled NT$25.97 billion, it is very likely that the IC designer will achieve its third-quarter sales target of NT$34.9 billion-NT$37.6 billion without difficulty.
According to its guidance released Aug. 2, MediaTek's third- quarter sales will rise 5 percent-13 percent from the second quarter.
Analysts said the company could post NT$5.09-NT$6.22 in earnings per share for the third quarter, up from NT$5.01 recorded in the second quarter.
In a recent research note, Daiwa Securities said MediaTek has a good chance of posting better-than-expected consolidated sales for the third quarter.
The brokerage has upgraded its target price on MediaTek shares to NT$430 from NT$420, while maintaining a "buy" recommendation on the stock.
Morgan Stanley expects that MediaTek's smartphone chip shipments for the third quarter will hit 67 million units, representing an upgrade from the brokerage's previous estimate of 60 million-65 million units.
The brokerage has raised a target price on MediaTek shares to NT$430 from NT$400.
After releasing the August sales data, shares of MediaTek rose 0.54 percent Friday to close at NT$369.50 on the Taiwan Stock Exchange, in which the benchmark weighted index ended down 0.05 percent.