Taiwan-based notebook maker Wistron has announced its financial report for 2010 with consolidated revenues growing 12.5% on year to NT$615.19 billion (US$20.89 billion), net profit up 33.5% on year to NT$15.35 billion and EPS reaching NT$6.15, all historical highs.

As for the fourth quarter, Wistron had consolidated revenues of NT$160.77 billion with net profit reaching NT$3.1 billion, operating margin 2.1% and EPS NT$1.59, better than the company's original expectations.

However, market watchers are pessimistic about Wistron's results in the first quarter of 2011 since Wistron's notebook shipments in the quarter are unlikely to achieve its forecast volume because of dropping orders from clients, while its other product lines are currently also experiencing the weak season.

As R&D expenses for new products will all be declared in the first quarter, the market watchers believe Wistron's first-quarter operating margin will drop below 2%, but will have a chance to rebound above 2% in the second quarter as its new products will start shipping.

Wistron originally expected its notebook shipments in the first quarter of 2011 to drop 5-10% sequentially because of Intel's defective chip incident and weak market demand, but decline is likely to increase to 10-15%.