Gold Circuit Electronics (GCE) swung to net profits of NT$256 million (US$8.3 million) in the third quarter of 2018 from losses a year ago, thanks to rising fab utilization rates and product mix improvement. EPS for the quarter came to NT$0.47.
GCE reported consolidated revenues increased 11.4% from a year earlier to NT$5.74 billion in the third quarter of 2018, while gross margin climbed 10.22pp to 18.55%. The higher revenues, coupled with rising production utilization rates at its Suzhou, China plant and a favorable product mix led to the company's net profit growth.
GCE used to specialize in notebook-use PCBs. The company has in recent years put increased focus on server and networking applications. Sales generated from orders for servers account for 40% of GCE's total revenues, followed by sales from orders for networking devices with 30%, and those for notebooks and other applications with 20%, the company disclosed.
Looking forward, GCE noted the company will continue improving its product mix. GCE will also enhance further its offerings for both server and networking applications and expects sales generated from the two segments to continue growing in 2019.
GCE continued that before 5G gets standardized, there is room for further growth in revenues generated from the server and networking sectors.
GCE posted net profits of NT$203 million on revenues of NT$15.53 billion for the first three quarters of 2018. EPS for the nine-month period came to NT$0.38.
Article translated by Jessie Shen
