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MediaTek tops Q4 sales target

MediaTek tops Q4 sales target

Taipei, Jan. 8 (CNA) MediaTek Inc., one of Taiwan's leading integrated circuit designers, said Wednesday it had surpassed its sales goal for the fourth quarter of last year, a performance that market analysts attributed to solid demand for smartphone chips. In the October-December period, MediaTek posted NT$39.80 billion (US$1.33 billion) in consolidated sales, up 2.02 percent from the previous quarter and a new quarterly high. The fourth quarter sales beat the IC designer's estimate in early November of between NT$37 billion and NT$39 billion, a drop of no more than 5 percent from the third quarter. Analysts said MediaTek's latest quarterly revenue data showed that the company had fended off the slow season effects in the fourth quarter and benefited from rising demand from Chinese vendors for smartphone chips. For the entire 2013, MediaTek's consolidated sales also hit a high of NT$136.06 billion, up by an annual 37.07 percent. Despite MediaTek latest sales data, its shares fell 2.75 percent to close at NT$407.00 Wednesday, underperforming the broader market, where the benchmark weighted index ended up 0.51 percent at 8,556.01 points. "Strong demand from China had alerted the market that MediaTek would deliver better-than-expected sales for the fourth quarter. Investors simply sold the stock on today's news," Hua Nan Securities analyst Kevin Su said. Su said MediaTek shares had climbed sharply since the beginning of October last year on expectations of strong sales, gaining more than 14 percent prior to Wednesday. "The stock faced downward pressure Wednesday as investors were stunned by the news that U.S.-based Qualcomm Inc. will soon take on MediaTek by entering the tablet and TV chip market," Su said. As inventory adjustments continue in the global IC business in the first quarter of this year, MediaTek could see a 7-15 percent sequential drop in sales for the quarter, according to analysts. (By Jackson Chang and Frances Huang)


Updated : 2021-03-06 02:04 GMT+08:00