Bits + chips
FocalTech expects sales recovery starting 2Q19
Cage Chao, Taipei; Jessie Shen, DIGITIMES

FocalTech Systems, which remained unprofitable in the first quarter of 2019, expects its sales and gross margin to recover starting the second quarter.

FocalTech saw its gross margin rebound to 20.96% in the first quarter, but net income stayed negative at NT$0.67 (US$0.02) per share. The company attributed its loss to seasonality, as well as its new-generation TDDI (touch with display driver integration) chips still being validated.

FocalTech expects a ramp-up in its overall TDDI chip shipments, as well as a seasonal pick-up in its touchscreen controller shipments, will be driving the company's revenue and gross margin growth in the second quarter.

FocalTech is positive about its gross margin in 2019, as shipments of its high-ASP products including new-generation TDDI chips and optical fingerprint sensors will kick off in the second half of the year.

Market Watchers expect FocalTech to post a double-digit sequential increase in second-quarter revenues. The company is also likely to swing to monthly profits during the quarter, according to the watchers.

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