Analog IC design house Richtek Technology expects its revenues to drop 13-22% sequentially to NT$2.5-2.8 billion (US$82.74-92.67 million) in the fourth quarter due to seasonal factors.

Affected by the appreciation of the NT dollar, fourth-quarter gross margin is also expected to fall to 35-38% compared to 38.5% recorded in the third quarter, the company added.

However, the company noted that demand for analog ICs for telecommunication devices will remain relatively strong in the fourth quarter, offsetting part of adverse impact of seasonality.