Young Fast Optoelectronics' December 2010 revenues are expected to remain at NT$1.6 billion (US$54.94 million), and total revenues for the fourth quarter are expected to increase 8-10% sequentially. Meanwhile, J Touch's December revenues are expected to drop sequentially but the company will report 25% increase in fourth-quarter revenues.

Young Fast's revenues in October and November totaled NT$3.55 billion, and market sources expect a single-digit percentage drop for its December revenues. Total revenues for the fourth quarter of 2010 are expected to reach around NT$5.1-5.2 billion. The sources added that Young Fast may see more obvious decreases in profit due to lower margins amid weaker-than-expected shipments of medium-size touch panels.

While Young Fast's revenues started to decrease in November earlier than fellow makers, it will see orders pick up earlier than other touch panel makers. Hence, Young Fast may see better performance in the first quarter of 2011. Shipments of medium-size touch panels are expected to see better growth because product validation has caught up with clients' shipment schedules.

The sources expect J Touch's revenues in the fourth quarter to increase due to shipments of medium-size capacity touch panels for tablet PCs.

As for the forecast for the first quarter of 2011, demand will depend on orders from smartphone and tablet PC vendors, but overall demand will remain weak due to seasonality.