With its ability to develop algorithms and independent chips, Altek has actively shifted its operating structure from digital cameras to smart cars, AI chips, and high-end medical imaging, which have become its three main product lines.
Altek's medical business accounted for around 34% of its revenue in 2020, with OEM contributing 36%, image signal processors (ISP) 8.2%, and automotive 14.5%.
The company's main product is used in vision solutions for driver monitoring systems (DMS), as well as some on-board vision modules such as backup and surround-view systems. Camera lenses accounted for 6% of revenue in 2020, with orders mainly for high-margin waterproof lenses.
Altek pointed out that the operating proportion for its product lines did not see much change in the first half of 2021.
Altek's July revenue reached NT$894 million (US$32.1 million), an increase of 67.01% on year. Cumulative revenue from January to July reached nearly NT$5.2 billion, an on-year growth of 63.18%.
The company's three main product lines have greatly contributed to Altek's growth.
In 2019, Altek's DMS entered the supply chain of a well-known US fleet management service provider and became its exclusive supplier. In 2021, Altek entered the Japanese market and is already delivering orders.
Altek's medical business has grown steadily. Additionally, the company's first-generation ISP mobile phone image processor chip has already begun to contribute revenue.
Looking forward, Altek noted that cooperation with mobile phone manufacturers for its ISP mobile phone image processor solution and related products has been successful.
Altek has also garnered investment interest from customers for its second-generation ISP chip design. Altek expects mass production to begin in the first quarter of 2022. Although it will enter a high base period in the second half of 2021, Altek remains confident in its annual operating performance growth.
According to industry sources, Android mobile phone makers all purchase ISP chips from outisde suppliers, with the exception of Samsung Electronics and Huawei, both of whom develop these chips on their own. Altek's ISP mobile phone image processor solution includes the chips and services concerning algorithms. The company has already penetrated a number of Chinese brands. The different types of design-in for the second-generation ISP chip are expected to include significant upgrades.
Altek announced on Aug 26 it is considering listing Altek Medical Holding, its subsidiary in charge of medical business, in overseas markets, including the Stock Exchange of Hong Kong. Doing so will help Altek reach its goals for business expansion and strengthening its global competitiveness and financing channels.