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April 29, 2017

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MediaTek reports monthly sales decline in May

MediaTek, a leading local integrated circuit (IC) designer, yesterday reported May sales of NT$7.653 billion, a decline of 3.64 percent from April and the second-consecutive monthly decline.

On a year-on-year basis, however, the figure was a rise of 16 percent.

The company has forecasted second-quarter revenue would fall between NT$22.4 billion and NT$23.5 billion. With sales of NT$15.594 billion posted for April and May, the company would hit the second-quarter target if its June sales fall between NT$6.8 billion and NT$7.9 billion.

MediaTek has expressed optimism for reaching that target, saying sales for the second quarter would fall at the middle to higher end of the predicted sales range.

Altogether, sales for this current quarter may increase 17 to 20 percent compared to the first three months, it said.

The company has predicted a second-quarter shipment increase for optical storage, digital TV and handset ICs. Smartphone chips are expected to ship 18 million to 20 million sets, enjoying the biggest growth among MediaTek products.

As for the second half, shipments are expected to surge due to stronger demands, it said, adding quarterly shipments would average 22 million.

Barclays Capital, meanwhile, has expressed confidence in MediaTek, saying sales from the smartphone segment would exceed those from the 2G segment, while sales from the 40-nanometer process would exceed those from the 65-nm process.

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