TPK posts worse-than-expected sales in Q3
CNATAIPEI--TPK Holding Co., one of Taiwan's leading touch panel suppliers, reported lower-than-expected consolidated sales for the third quarter, reflecting a component supply shortage.
October 6, 2013, 12:08 am TWN
TPK said its consolidated sales for the July-September period totaled NT$29.47 billion (US$998 million), down 23 percent from a quarter earlier and also down 22.3 percent from a year earlier.
In August, TPK estimated its third quarter sales would fall 15-20 percent from the second quarter, when the touch panel maker's revenue dropped 22.6 percent from the first quarter to NT$38.29 billion.
TPK said the sequential sales fall in the third quarter resulted from a supply shortage in high-end thin-film-transistor liquid crystal displays, the major component for touch panels.
TPK said once the component supply shortage problems are solved, its shipments could return to normal and boost its sales for the fourth quarter.
The company has scheduled an investor conference for Oct. 30 to release its third quarter results and give fourth-quarter sales guidance.
After TPK gave a gloomy sales target for the third quarter, its share price came under heavy pressure with market analysts saying the company was faced with fierce price competition.
In the third quarter, shares of TPK fell more than 78 percent on the Taiwan Stock Exchange amid lingering concerns over its sales and earnings prospects.
The stock, along with 13 other local counterparts, saw its weighting cut in the MSCI indices, effective after the market close on Aug. 30, due to the steep drop in its share price.
On Friday, TPK shares rose 2.92 percent to close at NT$282.00 after it announced that it has partnered with Japan's Nissha Printing Co. to develop silver nanowire ink processing technology, targeting the low and mid-range smartphone market.
Analysts said Friday's gains were technical in nature as many investors still kept a close eye on whether TPK will climb out of its current sales doldrums.