PixArt Imaging, a CMOS image sensor specialist, anticipates a modest revenue increase in the third quarter compared to the second. Gross margin and operating margin will also outperform the prior quarter's levels, thanks to a favorable product mix.
PixArt indicated that demand for optical mice, particularly those for gaming PCs and other gaming devices, started picking up in the second quarter. The CIS supplier expects to see revenue generated from mouse orders grow 5–10% sequentially in the third quarter.
Rising shipments of high-margin gaming mice will buoy PixArt's margin performance in the third quarter, the company said.
PixArt also continued to cut its inventory level in the second quarter, with net inventory falling to NT$793 million as of the end of the quarter, down 8.4% on quarter and 28.8% from a year earlier.
In addition, PixArt has kicked off shipments for automotive applications, which the company sees as a lucrative long-term market. The company expects its shipments for automotive applications to grow in 2023 compared to last year.
On the other hand, overall demand for PCs is unlikely to see a substantial pick-up until 2024, PixArt indicated. Customers are still cautious about shipment pull-ins for the fourth quarter and are cautiously managing inventory.
PixArt reported revenue of NT$1.39 billion (US$43.6 million) for the second quarter of 2023, up 28.3% sequentially but down 12.3% on year, with gross margin edging up 0.2pp on quarter but down 0.4pp from a year earlier to 55%. The company generated operating profits of NT$859 million in the second quarter.
Article translated by Jessie Shen
