TPK Holding Scores 17% Growth in Feb. Revenue

Taipei, March 14, 2011 (CENS)--The Taiwan-based TPK Holding Co., Ltd., a leading touch panel maker on the island, reported combined revenue of NT$8.116 billion for February, up 17% from January and meeting market expectation.

Although suffering a revenue decline in January, the firm successfully rallied back in February with combined revenue surging partly on shipment recovery and partly on depreciation of the New Taiwan dollar, noted institutional investors. They added that the revenue growth will be further fueled in March by Apple Inc.'s iPad 2G set for production.

As to outlooks for the second quarter of this year, the firm is expected to further benefit from the upcoming launch of iPad 2G and hence post a 25-30% growth in second-quarter revenue from a quarter earlier. Hopefully, the firms second-quarter combined revenue will hit a single-quarter high, estimated institutional investors.

The firm has just confirmed that it will raise capital spending to more than NT$20 billion for this year, with a majority of the budget to be poured into output expansion of touch panels and related components, such as touch sensors and cover lenses, to reinforce vertical integration of manufacturing.

TPK will achieve maximum monthly output of 14 million 3.5-inch touch panels, 6 million 10-inch panels, as well as 5 million 3.5-inch and 2.5 million 10-inch cover lenses around mid-2011, when its capacity expansion is completed.

The firm is expected to rake in NT$100-120 billion in combined revenue for the entire year, representing an annual growth of 60-100% from 2010, with full-year EPS (earnings per share) of NT$45-50.

With demand for touch panel applications, including smartphones and tablets, to keep growing strongly in the coming years, global market observers believe that TPK will continue its lead in the line.