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MediaTek February sales fall to 23-month low

MediaTek February sales fall to 23-month low

Taipei, March 6 (CNA) MediaTek Inc. (???), one of Taiwan's leading integrated circuit designers, said Friday that its sales in February fell to their lowest in 23 months because of the reduced number of working days during the month. In a statement, MediaTek said it posted NT$9.67 billion (US$307 million) in consolidated sales for February, down 44.62 percent from a month earlier and also down 38.52 percent from a year earlier. The February figure was the lowest level since March 2013, when it had sales of NT$9.43 billion. There were fewer working days in February this year than last because the extended Lunar New Year holiday fell in February this year, compared with late January in 2014. But even in the first two months of the year, with the Lunar New Year break eliminated as a factor in annual or sequential comparisons, MediaTek's consolidated revenue still fell 5.04 percent from a year earlier to NT$27.14 billion. The poor sales data sent shares of MediaTek falling 1.05 percent to close at NT$470.50, with 7.63 million shares changing hands on the Taiwan Stock Exchange Friday. "It was no surprise that investors rushed to unload the stock in the wake of the February sales data," Marbo Securities Investment Consulting Co. analyst Chang Chih-cheng said. "I think the sales impact could push down the stock further to test the nearest technical support point at around NT$460 in the near term," Chang said. Because of the weak sales reported for the first two months, many investors feared that MediaTek would not be able to hit its target range for first quarter sales of between NT$45.5 billion and NT$49.9 billion, a target that was already down 10-18 percent from sales in the previous quarter. "I am not that pessimistic since MediaTek is expected to benefit from strong smartphone chip demand from China ahead of the country's May 1 Labor holiday," Chang said.
"It's possible the IC designer will see its sales growth momentum pick up in March to help it meet the first quarter sales goal. "After the traditionally slow season in the first quarter, MediaTek could ride the uptrend in the global semiconductor industry on strong demand for mobile devices," Chang said. At an investor conference held in early February, MediaTek said smartphone chip shipments for 2015 are expected to rise to 450 million units from 350 million units in 2014. (By Jackson Chang and Frances Huang)


Updated : 2021-09-24 11:10 GMT+08:00