Micro-Star International (MSI) has reported web income elevated 22.4% on yr to NT$6.04 billion (US$195.7 million) in 2018, with EPS coming to NT$7.15 because of vital income from its gaming notebooks and screens, and robust demand in first-quarter 2018 for graphics playing cards from the cryptocurrency mining trade.
MSI had consolidated revenues of NT$29.75 billion for the fourth quarter of 2018, up 0.8% on yr, whereas web income went down 54.91% sequentially and 47.56% on yr to achieve solely NT$679 million. Gross margin additionally slipped from third-quarter’s 13.16% to 10.47% and EPS got here to NT$0.81. The declines resulted from the corporate reducing costs to filter out graphics card stock.
In 2018, gaming notebooks, workstations and enterprise notebooks collectively contributed over NT$30 billion in MSI’s revenues; graphics playing cards, over NT$40 billion; and motherboards, round NT$20 billion. The firm had over 70% of its revenues coming from its model companies and over 80% by way of income, in response to firm founder Joseph Hsu.
With the dissipation of cryptocurrency mining fad, the income contribution of MSI’s graphics card enterprise has returned to round 20%, down sharply from 30-40% throughout the peak. The gaming pocket book enterprise, which had an on-year cargo development of over 10% and ASP flat from a yr in the past in 2018, is anticipated to remain a income development driver in 2019, Hsu stated.
Hsu identified that the corporate’s total gross margin for the primary quarter of 2019 carried out weaker than anticipated as finish market demand continued to be iaffected by the US-China commerce tensions, and the corporate nonetheless has some graphics card stock that must be digested. However, with new merchandise coming andd costs of parts together with panel and reminiscence beginning dropping, its gross margin for the second quarter of 2019 is anticipated to rise again to 14-15%.
MSI’s pocket book enterprise is seeing restricted impression from Intel’s CPU shortages because it primarily focuses on gaming units. The firm stated it is usually planning to launch AMD-based gaming fashions if there’s demand for them. The firm’s motherboard enterprise has seen larger impacts from the Intel CPU shortages, however the firm is elevating its cargo proportion of high-end motherboards and releasing AMD-based merchandise, stated MSI president Sheng-chang Chiang
MSI president Sheng-chang Chiang (left) and founder Joseph Hsu (proper)
Photo: Monica Chen, Digitimes, March 2019
