Celebrating its 20th anniversary, Microtips focuses on continuing revenue growth rather than rapid expansion
Press release [Monday 17 April 2017]
Microtips founded its business on digital multimedia products in 1997 and has since been gradually gaining a secure foothold in digital signal processors (DSP) and expanding into "blue ocean" markets centered around digital audio and video signal products.
Going forward, instead of rapid expansion, Microtips will prudently choose to offer products with a high technological barrier and high profit margin and develop new applications based on existing R&D achievements, stated Steven Lu, CEO/president, Microtips.
LCD modules (LCM) and sound effect testing products are Microtips' steady revenue generators. New product lines include encrypted police cameras, fingerprint recognition modules, and wireless charging modules. Based on published data, Microtips' operating income has exceeded NT$ 1.2 billion for three years in a row, earnings per share growing from NT$ 0.85 in 2014 to NT$ 1.33 in 2015.
It should be noted that with frequent terrorist attacks happening around the world, demand for police cameras is on the rise. Microtips has officially become a supplier to American police, starting to deliver shipments in the first quarter of this year. The system integrates face recognition and transmits real time images to the cloud during patrol duties. Furthermore, to serve as evidence, the video images captured by encrypted police cameras are made to be tamper resistant. Police cameras will become a highlight of Microtips' products for their high manufacturing barrier and profit margin.
Fingerprint recognition modules, another new line of Microtips' products, support both swipe and touch fingerprint sensing for notebooks, tablets and smartphones, explained Lu. Business notebooks containing confidential information particularly need such security features. Therefore, Microtips has developed fingerprint scanning and recognition modules and is receiving growing orders from leading notebook manufacturers. This year's shipments are expected to significantly rise.
In addition to police cameras, fingerprint recognition modules and a range of video applications, Microtips is also actively penetrating into the market of wireless charging modules. However, digital sound effect products and LCM remain its leading sources of revenue. In particular, orders for LCM used in standardized and customized displays and touch panels for healthcare, communications, office automation and manufacturing applications are showing steady growth. Going into its next 20 years of development, Microtips will continue to enhance R&D capabilities so as to sustain continuing growth.
Microtips' future business strategy will focus on continuing revenue growth, indicated Steven Lu, CEO/president, Microtips.