The falling price of flat-panel displays has cut into first-quarter revenue at Taiwanese producer TPV Technology, whose profits fell short of expectations set by analysts at JP Morgan, the company said yesterday.
Profits at the Hong Kong-listed firm, however, exceeded the forecasts of other analysts.
First-quarter net earnings rose 32.8 per cent to US$35.18 million, while basic earnings per share rose 2.1 per cent to 1.93 US cents, below JP Morgan's forecast of 2.2 US cents.
'The results are pretty good. With the market pressure for TPV to provide those kind of earnings, growth is good,' said Mark Po Ka-kit, an analyst with UOB Kay Hian.
TPV's net profit exceeded the average estimate of US$31.8 million by three analysts polled by Dow Jones Newswires.
Turnover rose 87.2 per cent year on year to US$1.53 billion.
Excluding the monitor businesses of Dutch giant Royal Philips Electronics and associate Beijing Orient Top Victory Electronics, which TPV acquired last year, year-on-year revenue growth in the first quarter was 25 per cent to 30 per cent, said corporate finance director Shane Tyau.
Compared with the fourth quarter last year, turnover fell 20 per cent.
Chairman Jason Hsuan Chian-shen said that a turnover drop of 15 per cent from the fourth quarter was normal due to the seasonality of the business, but this quarter's revenue decline was larger than normal due to a fall in prices for flat panels.
'In the first quarter, there were two global customers who had a slowdown in their European inventory, which affected our sales,' Mr Hsuan said.
'In the first quarter, we lost market share because of these two customers, but we expect European sales to rebound in the second quarter,' he said.
He expressed confidence TPV's turnover in the second half would be better than the first half, as historically, the second half accounted for 60 per cent to 65 per cent of full-year sales.