Qisda has posted net profits of NT$440 million (US$14.35 million) for the third quarter of 2010, with an EPS of NT$0.23. Consolidated revenues for the quarter totaled NT$22.89 billion, up 1.5% compared to the second quarter.
Consolidated revenues for the first three quarters of 2010 totaled NT$65.23 billion with a net profit of NT$3.07 billion and EPS of NT$1.60.
Qisda indicated that product mix started to change in the third quarter, revenue share of LCD monitors dropped 3pp to 65%, projectors dropped 2pp to 14%, while the share for scanners/printers increased 2pp to 7%. Because of increasing shipments of new products in the second half of the year, revenue share of its two major businesses, LCD monitors and projectors, dropped to 79% in the third quarter, down from 91% in the third quarter of 2009, while revenue share of handheld devices such as tablet PCs and smartphones doubled to 6%.
Qisda executive VP Hermit Huang noted that Qisda's LCD monitor shipments maintained 3.8% sequential growth in the third quarter to about 3.75 million units while the overall global LCD monitor market decreased 3-6% in the third quarter. Qisda's monitor shipment growth matched its estimates as clients in Europe and the US rapidly adjusted their inventory and started to replenish in the third quarter. Projector shipments in the third quarter were about 263,000 units, down 18% sequentially. Shipments for scanners/printers increased 23% sequentially, but the growth was smaller than expected. Shipment growth of handheld and communication devices increased up to 200% sequentially, Huang said.
For the fourth quarter of 2010, shipments for new products such as e-book readers, smartphones and tablet PCs are expected to increase significantly due to new clients.
Qisda started mass production of smartphones in the fourth quarter, and began shipments at the beginning of October. With two clients expected to join in December, shipments for handheld devices are expected to increase significantly, and the orders will continue to contribute to the company's revenues in the first quarter of 2011. Monthly shipments were about 30,000-50,000 units in the third quarter, and are expected to double in the fourth quarter. Qisda currently has two clients for tablet PCs with monthly shipments of about 30,000-50,000 units in the third quarter, mainly for 5-inch products, and the company is scheduled to mass produce 7- and 10-inch products at the end of 2010 or early 2011.
Qisda noted that SiPix Technology had a breakthrough on e-paper production yield rates in the third quarter, and monthly production was about 20,000-50,000 units. Shipments in October doubled, and the company added that mass production of 6- and 9-inch will start as long as the supply of key materials remains on track.
Qisda believes that despite the fourth quarter being the traditional weak season for LCD monitors and projectors, its LCD monitor shipments are expected to remain flat sequentially as seasonality is less significant in 2010. However, monitor ASPs are expected to drop due to a significant decrease in LCD panel prices in the third quarter. Projector shipments are expected to drop 10-15% sequentially in the fourth quarter, and shipments of scanners/printers will remain flat.
Qisda: Income statement, 2Q09 - 2Q10 (NT$k) |
Item | 2Q-2010 | 1Q-2010 | 4Q-2009 | 3Q-2009 | 2Q-2009 |
NT$k | % of sales | NT$k | % of sales | NT$k | % of sales | NT$k | % of sales | NT$k | % of sales |
Gross sales | 15,007,556 | | 14,684,604 | | 12,094,755 | | 14,746,475 | | 12,405,135 | |
Operating revenue | 15,105,692 | 100.7% | 14,195,941 | 96.7% | 11,899,443 | 98.4% | 14,788,500 | 100.3% | 12,342,015 | 99.5% |
Gross profit (loss) from operations | 1,147,575 | 7.6% | 908,568 | 6.2% | 198,390 | 1.6% | 825,346 | 5.6% | 1,207,422 | 9.7% |
Operating expenses | 1,008,381 | 6.7% | 969,721 | 6.6% | 811,866 | 6.7% | 822,922 | 5.6% | 762,576 | 6.1% |
Operating income (loss) | 132,174 | 0.9% | -137,421 | -0.9% | -409,276 | -3.4% | -33,733 | -0.2% | 289,275 | 2.3% |
Income from continuing operations before income tax | 1,108,979 | 7.4% | 1,835,131 | 12.5% | -62,032 | -0.5% | 841,030 | 5.7% | -413,529 | -3.3% |
Net income (loss) | 904,592 | 6% | 1,728,264 | 11.8% | -62,032 | -0.5% | 841,029 | 5.7% | -441,062 | -3.6% |
Fully-diluted earnings per share (NT$) | 0.5 | | 0.9 | | | | 0 | | | |
*Figures are not consolidated
Source: TSE, compiled by Digitimes, October 2010