Quanta Computer has announced consolidated revenues of NT$274.39 billion (US$9.47 billion) for the second quarter, up 9.1% on quarter, but down 7% on year, while gross margin also dropped from 3.57% in the first quarter to 3.45%. The company's net profit also declined from NT$5.71 billion in the first quarter to NT$5.37 billion with EPS of NT$1.40.

At a press conference, company chairman Barry Lam also pointed out that the company's cloud computing product shipments will grow strongly in the fourth quarter and Lam expects the business' performance will continue rising in 2012 as more enterprises will adopt cloud computing, bringing the company's non-notebook businesses' revenue contribution from 25% in 2010 to 30% in 2011.

Quanta CFO Elton Yang pointed out that the dropping gross margin for the second quarter was due to Japan's earthquake in March causing the company to overstock inventory, and since Taiwan and China's currencies have both been increasing during the period, the losses were mainly generated by depreciated inventory value. Without the impact from exchange rate fluctuations, Quanta's gross margin performance in the second quarter would have been no worse than in the first.

As for the third quarter, Quanta expects its notebook shipments to maintain flat on quarter with shipments in the second half to enjoy a 5% growth compared to the first. Meanwhile, notebook shipments in 2011 are expected to grow 10% from 51.2 million units to 56.32 million units.

Source:digitimes