Due to seasonal impact, IC design house Elan Microelectronics is seeing orders decline in the fourth quarter of 2010, and expects revenues to contract 20% from the third quarter's NT$1.77 billion (US$57.85 million) to around NT$1.3-1.4 billion, according to company chairman I-Hau Yeh.
Thus far in the fourth quarter, Elan reported that orders are trending down across its product portfolio including MCUs, touch-panel controller ICs and modules, PC peripherals and consumer ICs, with sales falling by 15-25%. Gross margin should also retreat by 1pp from 38% in the third quarter.
In regards to Elan's patent infringement lawsuit against Apple, Yeh indicated that the legal process is ongoing and a conclusion is expected by August 2011. Elan is still open to a settlement, but it depends on the terms, Yeh said.
| Elan: Results, 3Q10 (NT$b) |
| | 3Q10 | Q/Q | 1Q-3Q | Y/Y |
| Revenues | 1.77 | 2% | 4.61 | 47% |
| Gross margin | 38% | (1%) | 38% | 3% |
| Net income | 0.269 | (9%) | 0.702 | 250% |
| EPS | 0.68 | (9%) | 1.77 | 250% |
Source: Company, compiled by Digitimes, October 2010