Taiwan-based IC and electronic component distributor WT Microelectronics saw gross margins of 5.91% for the first quarter of 2014, a rise by 0.19 percentage points on quarter and by 0.08 percentage points on year mainly due to an increased revenue proportion for more profitable industrial control and automotive ICs, according to company chairman Eric Cheng at a May 5 investors conference.
In terms of application of products, PCs accounted for 28.3% of first-quarter 2014 consolidated revenues, communication for 26.9%, consumer electronics for 22.0%, industrial control for 14.1%, automotive for 6.4%. 81.5% of the consolidated revenues came from the China market, followed by Taiwan with 9.0%, South Korea with 6.7% and Southeast Asia with 2.6%.
For business operation in the second quarter of 2014, WT Microelectronics expects consolidated revenues of NT$24.0-25.5 billion (US$793-843 million), gross margin of 5.7-5.9%, net operating margin of 2.1-2.3% and inventory turnover time of 53 days.
WT Microelectronics will add touch ICs to its product lineup in the third quarter of 2014 and has talked about orders with China-based smartphone vendors.
| WT Microelectronics: Financial report, 1Q14 (NT$m) | |||
| Item | Amount | Q/Q | Y/Y |
| Consolidated revenues | 23,008 | (1.89%) | 14.95% |
| Gross margin | 5.91% | up 0.19pp | up 0.08pp |
| Net operating profit | 492 | 8.18% | 27.19% |
| Net profit | 339 | 4.63% | 13.86% |
| Net earnings per share (NT$) | 1.00 |
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Source: Company, compiled by Digitimes, May 2014
Article translated by Adam Hwang
