Asustek Computer saw its net profit dip 41% on quarter and 35% on year to NT$2.38 billion (US$80.03 million) in the first quarter of 2018, due to non-operating losses. EPS for the first quarter stood at NT$3.20, lower than market expectations of NT$4.20.
Non-operating losses totaled NT$760 million in the first quarter as a provision of EUR65 million (US$77.6 million) to settle allegations by the EU for price manipulations by its PC business in Europe eroded a foreign exchange transaction gain of NT$1.17 billion in the quarter, the company reported.
However, the company said its gross margin improved to 14% in the first quarter, up from 13.4% a quarter earlier; and its operating margin climbed to 4.5% from the previous 3.9% during the same period. An improvement in product mix and higher-than-expected demand from the cryptocurrency sector contributed to the improvements, according to company CFO Nick Wu.
Looking forward to the second quarter, PC and component revenues are expected to slide 7.5-12.5% and 15-25% on quarter, respectively, due to seasonal factors, while sales of mobile devices are likely to grow 25-35% on the release of new models, Wu said.
Overall revenues for 2018 are expected to grow 5% from the levels seen in 2017, with gaming products likely to post an annual growth of 10-30%, according to company CEO Jerry Shen.
Non-operating losses eroded Asustek's earnings in 1Q18
Photo: Digitimes file photo
Article translated by Steve Shen
