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Hermes Microvision Q3 sales fall below expectations

Hermes Microvision Q3 sales fall below expectations

Taipei, Oct. 8 (CNA) Hermes Microvision Inc. (???), one of Taiwan's leading semiconductor inspection tool and equipment suppliers, has witnessed its sales for the third quarter falling below the company's previous estimate, in reflection of a slow season in the global semiconductor industry. During the July-September period, Hermes posted NT$1.05 billion (US$32.11 million) in consolidated sales, down 54.53 percent from a quarter earlier. The sequential drop is steeper than the company's previous estimate of a 30-40 percent drop. In September alone, Hermes's consolidated sales fell 16 percent from a month earlier and also dropped 12 percent from a year earlier to NT$398 million. For the first nine months of this year, the semiconductor production equipment provider reported a 9 percent year-on-year increase in sales at NT$4.93 billion. In the wake of the disappointing third-quarter sales report, investors rushed to dump the stock soon after the local equity market opened Thursday before some bargain hunting emerged to vault its share price back into positive territory, dealers said. As of 12:03 p.m., shares of Hermes had added 1.22 percent to NT$1,240.00, off a low of NT$1,165.00, on the over-the-counter market, where the index was down 1.18 percent at 120.81 points. The stock remained the second-most expensive stock in the local market, behind only smartphone camera lens maker Largan Precision Co. (???), which stood at NT$2,670.00 as of 12:03 p.m. Due to the slow-season effect, Hermes has suffered moves by its clients to put their production equipment purchases on hold, and the postponement of its clients' investment has hurt the Taiwanese supplier badly, analysts said. A Hong Kong-based brokerage said that judging from the sequential drop in sales for the third quarter, it anticipates that Hermes will report the first year-on-year drop in revenue for 2015 since the company launched a listing on the OTC market in May 2012. Uncertainty over global demand has prompted the brokerage to cut its target price to NT$1,110 from NT$1,480, and issue an "underweight" rating on the stock. A European brokerage has maintained an "underweight" recommendation and a target price of NT$1,050 on Hermes shares, saying that it fears the Taiwanese supplier will face requests from clients to cut product prices. Hermes declined to comment on the foreign brokerage reports but said it will announce its third-quarter results and a forecast for this year in an investor conference scheduled for Oct. 16. (By Jackson Chang and Frances Huang)


Updated : 2021-09-28 18:59 GMT+08:00