Taiwan-based STN LCD maker Powertip Technology and affiliate Powertip Display slid 2% and 13.6% month-on-month, respectively, in January sales, on fewer working days and tight supply in color filters (CFs) and driver ICs.
Powertip Technology, however, expects its sales to rise to about NT$120 million in February from NT$113.25 million in January. It projects its pre-tax margin will grow in the first quarter from 3% last quarter and its monthly sales will rise sharply in the second quarter on more color STN (CSTN) module orders from Taiwanese mobile phone makers and possible orders from Chinese vendors.
Due to limited component supply, Powertip Technology expects Powertip Display’s February sales to reach only NT$140 million in February, rising from NT$121.07 million in January, even though the affiliate has NT$200 million of orders on hand. It projects Powertip Display will see steady growth in sales in March and return to profitability in the first quarter as component supply improves.
Powertip Technology will apply to issue bonds this year after getting approval at its shareholders meeting in May. The company will issue a full-year financial forecast at the end of March.
Powertip Display will issue stock later this year.
Article translated by Carrie Yu and edited by Richard So
