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Asustek 1Q17 net profit hits 23-quarter low

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Asustek 1Q17 net profit hits 23-quarter low
Siu Han, Taipei; Adam Hwang, DIGITIMES [Friday 12 May 2017]

Asustek Computer has released its financial report for first-quarter 2017, recording total revenues of NT$98.206 billion (US$3.23 billion), gross margin 13.39%, net operating profit NT$3.809 billion, net profit NT$3.651 billion and net EPS NT$4.92, with net profit being the lowest quarterly level since third-quarter 2011.

Of the revenues, 62% came from DIY motherboards, notebooks and desktops; 20% from smartphones and tablets; 15% from components; and 3% from IoT (Internet of Things) devices. In terms of regional markets, Asia accounted for 45% of the revenues, Europe for 35%, and North and Latin Americas for 20%.

Shipments of gaming notebooks, ultra-thin notebooks and 2-in-1 notebooks in the first quarter increased 50%, 50% and 5% respectively on year. Gaming notebooks took up 25% of total notebook revenues for the first quarter.

Asustek expects second-quarter revenues from DIY motherboards, notebooks and desktops to drop 5-10% on quarter, those from smartphones and tablets to slip 20-25% and those from components to dip 5-10%.

Asustek will begin production of new smartphone series, ZenFone 4, in May and launch them in the Taiwan and overseas markets in July-September.

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