Asustek Computer Inc (華碩) yesterday said that its net income for its brand business nearly doubled last year on the back of improved business operations, narrowing losses in its mobile phone business, and growing shipments of gaming and ultra-light laptops.
As profit surged 194 percent annually to NT$2.63 billion (US$86.87 million) last quarter, net income last year jumped 187 percent to NT$12.14 billion, Asustek said.
Earnings per share soared from NT$5.7 to NT$16.3 and gross margin rose from 10.6 percent to 13.4 percent, it said.
Although revenue of its brand business last quarter inched up slightly by 1 percent to NT$89.29 billion, full-year revenue declined 6 percent from NT$352.45 billion in 2018 to NT$332.53 billion last year, Asustek said.
Buoyed by the results, Asustek yesterday maintained a confident outlook regarding market demand in the long term, while forecasting a sequential decline in sales this quarter due to the COVID-19 pandemic.
PC sales are expected to fall by up to 40 percent quarter-on-quarter, while components sales would contract by 5 percent, the company said.
“COVID-19 is a big challenge and will impact business in the short term,” Asustek co-CEO S.Y. Hsu (許先越) told investors, adding that the company is facing a decline in demand and difficulties in securing supplies.
“In the mid-term, we expect to see an increase in demand due to the recent rise in distance-leaning and telecommuting,” Hsu said.
“Overall market demand will undoubtedly falter if the virus remains at large … but we [will be able] to rise to such challenges through continuous product innovations and improvements to our operational efficiency,” he said.
“We are [still] seeing positive factors this year, including an end to the shortage of central processing units as well as mining processors … we are also entering a new PC cycle,” Hsu said.
Asustek would continue to focus on developing gaming and ultra-thin laptops, as well as expanding its content creator product line, ProArt, he said.
The company has secured orders for its smart healthcare, smart manufacturing and smart retail solutions, Hsu said.
Asustek’s board of directors yesterday proposed distributing a cash dividend of NT$14 per share.
Separately yesterday, rival PC maker Acer Inc (宏碁) posted net profit of NT$2.63 billion for last quarter, a 13.98 percent decline from the previous year, with earnings per share falling to NT$0.87.
The company’s board of directors has proposed distributing a cash dividend of NT$0.77 per common share.
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