Quartz component maker TXC turned in NT$890 million (US$30.58 million) in December revenues, up 19.4% sequentially. If not for a strengthening NT dollar, the company's revenues could have exceeded NT$900 million for the period, according to industry sources.
Fourth-quarter revenues are expected to be higher than NT$2.6 billion, up 6% sequentially on the strength of orders from the smartphone and tablet PC segments. However, due to a strong NT dollar, its fourth-quarter gross margin slid to around 25%.
TXC is expected to maintain its shipment momentum in the first quarter of 2011 as the company has been a major component supplier for Apple, the sources indicated. The continued growth expected for the smartphone industry in 2011 will also foster a healthy growth for quartz and GaAs-based power amplifiers.
Due to a high base recorded in the fourth quarter of 2010, TXC is expected to see its revenues drop 6-8% sequentially in the first quarter of 2011, the sources estimated.
Article translated by Steve Shen
