Despite China's saturated smartphone market, FocalTech Systems is looking to post a double-digit revenue increase in 2016, according to company chairman Genda Hu.
Revenues for the first quarter of 2016 will be slightly lower than the prior quarter's levels due mainly to seasonal factors and the impact on panel shipments from a magnitude-6.4 earthquake that struck southern Taiwan in early February, said Hu.
FocalTech designs and develops touchscreen and LCD driver IC solutions mainly for smartphones. Huawei is reportedly among its main customers.
In addition, FocalTech expects to achieve a 20% gross margin in 2016 thanks to rising shipments of new products which are integrated driver controllers, fingerprint solutions and force touch solutions, Hu indicated.
FocalTech's gross margin already improved to 18.2% in the fourth quarter of 2015 from 17.4% in the third quarter, 17.2% in the second quarter and 15.5% in the first, Hu added.
Monthly shipments of FocalTech's integrated driver controllers may reach about one million units in the second or third quarter of 2016 as more devices adopt the solutioins, Hu said. Meanwhile, the company's fingerprint sensors and force touch products will enter mass production stages later in 2016, Hu noted.
FocalTech reported net profits of NT$236 million (US$7.1 million) on revenues of NT$11.48 billion for 2015. EPS for the year came to NT$0.62.
Article translated by Jessie Shen
