Sat, Nov 25, 2023 page12

• Genius bullish on periscope lenses

  EXPANDABLE: Lensmaker Genius Electronic is confident that future orders are to hinge on mid-range smartphone demand, with VR headsets also being a key device

  • By Lisa Wang / Staff Reporter
  • • 
    • 
    • 

  Genius Electronic Optical Co (玉晶光), which supplies camera lenses to Apple Inc and Huawei Technologies Co (華為), yesterday gave bullish business prospects for next year, attributable to wider adoption of pricey periscope camera lenses for more smartphones beyond premium models.

  That would be a key upgrade in smartphone camera specifications as Genius’ customers at present only equip their flagship phones with such high-end lenses. As customers are mulling expanding the usage of periscope camera lenses to their mid-range models, Genius considers the periscope camera lens business a great boon.

  “We are optimistic about the company’s business outlook next year,” Genius chairman Jones Chen (陳天慶) told an online investors’ conference.

  

  Genius Electronic Optical president Lee Kuo, left, and chairman Jones Chen pose for a photograph at the company’s annual shareholders’ meeting in Taichung on June 15.

  Photo: CNA

  Genius’ optimism is also built on an upbeat forecast that its Chinese smartphone customers are to see a jump in shipments next year, the company said.

  As Genius is seeing an uptrend in demand for its camera lenses used in premium smartphones and some high-end notebook computers, the company is planning to boost the capacity of camera lenses used in mobile phones and virtual-reality (VR) headsets, company president Lee Kuo (郭英理) said.

  “Our capacity is really tight now,” Kuo said.

  No details about next year’s capital spending were disclosed yesterday, as next year’s budget is still being planned, he said.

  Kuo said that VR headsets are a new driving force for its camera lens shipments, as a premium VR headset requires about 10 camera lenses. A mid-range model needs six, while entry-level VR headsets have two or three, he said.

  Genius is confident about the outlook of VR devices in the long run, as its customers are developing next-generation products without being discouraged by slow uptake in the initial stage. One of its customers is to unveil a new VR headset next quarter, the company said.

  Another customer inked an agreement with China’s Tencent Holdings Ltd (騰訊) to sell its VR headsets in China, which bodes well for the sales, Genius said without identifying Meta as the customer.

  VR camera lenses made up about 20 percent of Genius’ total revenue last quarter, it said.

  Genius yesterday gave a positive business outlook for this quarter. Revenue this quarter would have better performance than previous fourth quarters in the company’s history, Chen said.

  Gross margin this quarter might be higher than last quarter’s 35 percent, attributable to a better yield rate for camera lenses used in VR headsets, he said.

  Last quarter’s gross margin fell short of investors’ expectations as the company shipped more VR camera lens modules, which delivered a lower margin due to a less favorable yield rate, smaller production scale and component pass-through costs, the company said.

  Commenting on the impact of a patent infringement suit lodged by rival Largan Precision Co (大立光) in Taipei earlier this week, Genius yesterday said the legal disputes did not affect customers’ orders.

  Genius said it holds more than 1,000 patents related to the manufacturing of optical products.

  Genius’ net profit dipped 21 percent to NT$1.93 billion (US$61 million) during the first three quarters of this year, compared with NT$2.43 billion in the same period last year. Earnings per share dropped to NT$17.02 from NT$21.57.

  Gross margin sank to 33.33 percent during the nine-month period, from 38.6 percent in the prior year.
• Most Popular

  • 1

    Typhoon Kong-rey largest to hit Taiwan since 1996

  • 2

    Typhoon may land in Taitung

  • 3

    Typhoon forecast to hit Taiwan today

  • 4

    CWA issues sea warning for Typhoon Kong-rey

  • 5

    Landfall possible for Tropical Storm Kong-Rey