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Realtek sees profits down in 1Q17

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Realtek sees profits down in 1Q17
Cage Chao, Taipei; Steve Shen, DIGITIMES [Wednesday 26 April 2017]

Tight supply of memory devices, LCD panels and other key components is discouraging downstream OEMs and brand companies from placing chip orders, according to Alex Chiu, president of Realtek Semiconductor.

For this reason, Realtek is more conservative about the business outlook for the second quarter of 2017 although inventory levels at clients are actually moving downward at the moment, Chiu said at the company’s latest investors conference.

Meanwhile, Reaktek reported that its net profits declined 25.65% on quarter and 14.21% on year to NT$507 million (US$16.88 million) in the first quarter of 2017 as a loss of NT$500 million in foreign exchange transactions lowered its earnings.

EPS for the first quarter stood at NT$1.00 compared to NT$1.35 a quarter earlier and NT$1.17 a year earlier, while gross margin also dropped 0.82pp to 42.58% in the quarter.

The company expects its gross margin to stay in a range of 42-44% in the second quarter and shipments of TV, PC and network chips to post growth in the second half of the year.

The company’s stock price lost NT$4.00 to close at NT$100.50 on the Taiwan Stock Exchange (TSE) during the April 26 session.

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Categories: Bits + chips Display panel IC design, distribution Memory chips

Tags: 1Q17 LCD Realtek Realtek Semiconductor semiconductor

Companies: Realtek Semiconductor

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