Taipei, Aug. 28, 2008 (CENS)--With a global economic recession continuing into the second half of the year, Qisda Corporation, a Taiwanese supplier of consumer electronics, has decided to cut its LCD (liquid crystal display) TV and LCD monitor shipment projections to only 1 million and 15 million units, respectively, for entire the year, according to company sources.
Qisda saw its gross profit rate drop to 3.4% in the second quarter of this year from 4.3% posted in the first quarter, and witnessed its operating losses surge to NT$690 million from NT$530 million, due partly to economic depression and partly to the rise in prices of raw materials.
In the meantime, despite scoring non-operating income of NT$1.44 billion from its reinvested company AU Optronics Corp., a world-caliber supplier of display panels, Qsida posted net profits of only NT$570 million, or NT$0.32 per share, for the second quarter, sharply down 67% from the first quarter.
Hsiung Hui, president of Qisda, noted that his company projects its third-quarter shipment of LCD monitors to remain at almost the same level as in the second quarter, but continuous drops in ASP (average selling price) of the product will very likely cause its third-quarter revenue to decline. This prompts the company to keep working hard on improving its production efficiency to minimize its operating losses.
On the other hand, sluggish demand by its major clients for LCD TVs has led Qisda to ship only 300,000 units for the first half of this year, forcing the company to cut its original shipment projection of 2 million units by 50% to 1 million units for entire the year.
Qisda`s Sales Performance for 1st Half of 2008 |
| | Q1 | Q2 | Quarterly Growth Rate |
Sales Revenue | NT$29.23 B. | NT$30.45 B. | 4.2% |
Gross Profit Rate | 4.3% | 3.4% | Declining by 9 percentage points |
Operating Income | NT$530 M. (loss) | NT$690 M. (loss) | -30% |
Non-operating Income | NT$2.29 B. | NT$1.5 B. | -34.4% |
Net Profits | NT$1.75 B. | NT$570 M. | -67% |
Earning per Share | NT$0.98 | NT$0.32 | |
Source: Qisda Corporation
(by Steve Chuang)
