Flat panel maker Innolux has announced improved results for the second quarter of 2020, showing robust sales growth with smaller losses, driven by strong demand for panels amid an easing of lockdown measures in the US and Europe and rising stay-at-home economy.
Net loss narrowed to NT$4.8 billion (US$163.49 million) in the second quarter from net loss of NT$5.27 billion in the prior quarter, the company said in a statement. This marks the seventh consecutive quarterly loss reported by the company.
Revenues for the second quarter were up 32.7% sequentially to NT$66.9 billion, with a gross margin of 2.8% compared to minus 1.8% a quarter earlier.
Looking into the third quarter, demand for TV panels will gain momentum as TV brands are building up inventory in preparation for year-end shopping, the company said.
Robust demand for notebook and monitor applications will remain strong in the third quarter along with the emerging trends supporting remote work and study, it added.
The reopening of auto manufacturing facilities in the US and Europe and the rollouts of 5G phones will help spur demand for small- to medium-size display products in the second half of the year, said the firm.
Innolux expects its shipments of large-size panels to grow 7-9% sequentially in the third quarter with their ASPs edging up 4-6%. However, shipments of small- to medium-size panels are likely to fall by a single-digit percentage point.
Fellow company HannStar Display has reported net loss of NT$388 million in the second quarter, although revenues for the quarter were up 7% sequentially to NT$3.657 billion.
HannStar also saw its shipments increase 16.8% sequentially to 4.244 million 19-inch equivalent panels in the second quarter with an ASP of US$29 per unit. In terms of product size, shipments of small- to medium-size panels totaled 126 million units, and those of large-size models totaled 480,000 units.
Article translated by Steve Shen
