Qisda sees growth in 1Q10 revenues

Qisda has announced consolidated revenues of NT$19.8 billion (US$629.67 million) for the first quarter of 2010, up 1.2% on quarter and 9.9% on year.

Net profit for the quarter reached NT$1.73 billion, with EPS of NT$0.90. Gross margin reached 7.6%, and operating profit were NT$160 million in the first quarter.

Qisda's gross margin dropped 0.2 percentage point in the first quarter due to increased material prices, but the gross margin in the second quarter is expected to remain flat sequentially and start increasing in the third quarter amid the launch of new products, Qisda president Hsiung Hui said.

Qisda CFO David Wang indicated that LCD monitor shipments in the first quarter of 2010 increased 10.5% sequentially to 3.47 million units, and accounted for about 71% of Qisda's total revenues. Shipments of front projectors decreased 3.8% sequentially to 244,000 units, and accounted for about 15% of Qisda's total revenues, Wang noted, adding that projector shipments in March exceeded 100,000 units.

For the second quarter of 2010, Qisda expects monitor shipments to increase 10-15% sequentially to 3.8-4 million units, and projector shipments to grow 10% to 260,000-270,000 units. Hsiung indicated that overall market demand in the second quarter is expected to remain flat, but Qisda expects better performance and growth in the second half of 2010.

Qisda expects its monitor shipments in 2010 to increase by 20-30% to 17-18 million units, and LED-backlit models will account for 20% of its total shipments. Shipments of projectors are expected to grow by 30% in 2010, the company added.

Hsiung noted that the shipment share of its e-book readers, LCD touch products and smartphones will together exceed 20% in the second half of 2010.

Source: Qisda, compiled by Digitimes, April 2010

Article translated by Yvonne Yu