Quanta Computer 1Q Net Down 10.7%; Outlook Cloudy On Economic Uncertainties
First Published Friday, 27th April 2012 09:57 am - © 2012 Dow Jones
-- Quanta Computer's 1Q net profit falls 10.7% on lack of disposal gain.
-- Company says uncertainties about euro-zone debt cloud full-year outlook.
-- Company expects 2Q notebook PC shipments to rise 5%-10% from 1Q on new products.
-- Company expects 2Q gross margin to rise from 1Q due to economies of scale.
-- Company expects non-notebook revenue to account for more than 30% of its 2012 revenue.
(Recasts the 1st paragraph; adds outlook in the 2nd paragraph and comments from executives in the 6th-8th paragraphs.)
By Lorraine Luk
Of Dow Jones NEWSWIRES
TAIPEI (Dow Jones)--Quanta Computer Inc. (2382.TW) said Friday its first-quarter net profit fell 10.7% on a lack of disposal gains compared to the year-earlier period, and the outlook for the industry remains hazy because of lingering uncertainties about euro-zone debt issues.
The world's largest contract maker of notebook personal computers by shipments expects its 2012 notebook computer shipment growth to exceed the industry average of 5%, but refrained from specifying a figure as any negative developments stemming from continued global economic uncertainties could hurt demand.
The company said its net profit for the three months ended March 31 was NT$5.10 billion (US$172 million), down from NT$5.71 billion a year earlier when it booked a disposal gain of NT$1.05 billion from selling shares in battery maker Simplo Technology Co. (6121.TW). Excluding the disposal gain, its first-quarter net profit rose 9.5% from a year earlier.
It earnings were in line with the NT$5.10 billion average forecast of six analysts polled earlier by Dow Jones Newswires.
Quanta, which makes notebook computers for global PC brands such as Hewlett-Packard Co., Dell Inc. and Lenovo Group Ltd., said its second-quarter notebook shipments will likely rise 5%-10% from the first quarter on new-product launches, and its gross margin will also likely improve due to economies of scale.
Quanta President C.C. Leung said the launch of lightweight ultra-thin models by various PC makers later this year will fuel the growth of notebook PCs.
However, Quanta Chairman Barry Lam said: "We are conservative about forecasting growth rate this year because global economic outlook remains uncertain. But we are confident that Quanta's business can continue to grow this year as we have diversified customer base and comprehensive product portfolio."
To compensate for slowing growth in mature notebook computer market, Lam said Quanta aims to increase this year's revenue from non-notebook products, including tablets and servers, to more than 30% from about 30% last year.
Quanta's consolidated revenue in the first quarter fell 6.1% to NT$236.22 billion from NT$251.61 billion a year earlier because of a change in its product mix.
-By Lorraine Luk, Dow Jones Newswires; 8862-25022557; firstname.lastname@example.org