Lite-On Technology has reported third-quarter worldwide consolidated sales of NT$31.86 billion (US$1.04 billion), up 20% on year, with net profit of NT$2.53 billion and EPS of NT$1.14, thanks to market expansion and steady demand.
The company has also reported revenues of NT$26.344 billion in third-quarter revenues for its operations in Taiwan.
Total worldwide sales from January through September of 2010 hit NT$92.88 billion, up 35% on year, the company said. Operating profit and net profit reached NT$5.67 billion and NT$6.8 billion respectively, with accumulated EPS of NT$3.05 increasing 50% on year.
All of Lite-On's core business units showed steady growth sequentially, with the Camera Module, Optoelectronics (LED), HIS (Human Input Solutions-PC keyboards and peripherals) and Power Supply business units posting on-year growth of 86%, 34%, 28% and 12% respectively, and all of them hit new record quarterly highs.
In the third quarter, Lite-On's overall profit margins continued to grow sequentially despite material and labor cost pressures, the company said. The company's gross margin and operating margin reached 13.9% and 6.7%, up 0.9pp and 0.4pp on quarter, respectively, mainly thanks to increased productivity and more effective supply chain management. Lite-On's net cash position held steady at NT$11.9 billion, after its recent cash dividend distribution of NT$5 billion.
The company expects stable business and margins in the fourth quarter, resulting from the company's strong market position, cost efficiency and strict working capital management.
Non-operating items posted a net income of NT$508 million in the third quarter, with subsidiary Perlos seeing third-quarter sales reach 138 million euros, up 12% on year. Perlos' gross margin and operating margin in the third quarter posted 12.8% and 4.7% respectively and net profit was 2.2 million euros.
Looking forward, sequential sales growth is expected from Perlos in the fourth quarter, thanks to new program ramp-ups in key client and margins will be impacted by 1-2% due to touch joint venture start-up and lower utilization in Mexico, Lite-On said. Meanwhile, the JV will start mass production towards year end.