TPV Technology's turnover and net profit fell in the first quarter and is expected to show a similar year-on-year decline in the second. The company expects to complete its US$358 million acquisition of the liquid crystal display (LCD) monitor business of Dutch giant Royal Philips Electronics in a few weeks, which will make TPV the world's biggest monitor maker. But analysts say its bottom line will be hurt in the second half. In the first quarter, TPV's turnover dropped 7.7 per cent over the same period last year to US$821.66 million and net profit fell 21.7 per cent to US$26.49 million. From the fourth quarter of last year to the first quarter, turnover crashed 24.7 per cent but net profit rose 29 per cent. 'Some European customers were clearing inventory in the first quarter, so they bought less,' corporate finance director Shane Tyau said. Mr Tyau said the firm was phasing out 'end-of-life' products such as cathode ray tube (CRT) computer monitors and ramping up new products such as LCD computer monitors and LCD televisions. TPV's two biggest markets are the United States and Europe. In the first quarter, its US sales were essentially flat year on year while European sales dived 33.7 per cent to US$184 million. Other reasons for the poor performance were lower prices for LCD monitors and declining sales of CRT monitors, an increasingly obsolete product being phased out of the global market, TPV chairman Jason Hsuan Chian-shen said. TPV shipped one million more LCD computer monitors in the first quarter compared with the first quarter last year, equivalent to a 48.8 per cent increase, but their average selling price fell nearly 50 per cent, Mr Hsuan said. TPV's shipment of CRT monitors declined by 700,000 units year on year in the first quarter and would continue declining in subsequent quarters in line with global trends, he said. Jonathan Ng, an analyst with GK Goh, said: 'For the second quarter, I'm looking at year-on-year decline in revenue and profit. Even if TPV increases shipments of LCD monitors, it will be offset by the decline in selling prices.' He forecasts a recovery in the second half for the business of TPV excluding Philips' LCD monitor unit.