Touchscreen solution provider TPK Holding has posted consolidated revenues of NT$21.239 billion (US$653 million), gross margin of 4.67%, net operating loss of NT$357 million, net profit of NT$52 million and net EPS of NT$0.15 for the first quarter of 2016.
TPK said its biggest and second-biggest clients accounted for 44% and 22% of its first-quarter consolidated revenues respectively. Market watchers said Apple was TPK's biggest client, followed by Microsoft.
Of the touch panels shipped in the first quarter, sub 7-inch ones accounted for 30%, 7- to sub 11-inch 29%, and 31%, and 11- to sub 16-inch 31%. Shipments of small-size, medium-size and large-size touch panels in the first quarter decreased 66-67%, 15% and 20% respectively on quarter.
Market analysts expect TPK to see consolidated revenues for the second quarter drop 15-20% sequentially and continue to see net operating loss.
Apple has been said to be planning to adopt OLED panels for iPhone devices in 2017. TPK president and CEO Michael Chung said at an April 28 investors conference that the supply chain would face tough challenges tackling a shift from LCD to OLED.
As far as touchscreens are concerned, Chung said in-cell touch for OLED has yet to overcome certain technological barriers, and on-cell and out-cell touch are more likely solutions for OLED initially.
TPK Holding president and CEO Michael Chung
Photo: Michael Lee, Digitimes, April 2016
Article translated by Adam Hwang
