MediaTek reported March revenues up 16% sequentially but down 9% on year
at NT$3.22 billion.
The company also holds a conservative outlook for second
quarter revenues, with sales expected to remain flat.
MediaTek had accumulated monthly revenues of NT$9.01 billion for the first
quarter of this year, a drop of 6% on quarter and 5.85% on year.
However, market observers anticipate MediaTek should enjoy higher gross
margins from the 44.3% it recorded in the fourth quarter of 2004, as foundry
costs should be lower and average selling prices (ASPs) have remained
A report earlier this year cited source at IC design houses as saying foundries
such as Taiwan Semiconductor Manufacturing Company (TSMC) and
Powerchip Semiconductor Corporation (PSC) have offered price reductions
from year-end 2004.
Although some investors have voiced concerns that MediaTek is shipping
more handset chips, which tend to have lower margins, a source at the
company noted that only 10-15% of the company?s first quarter shipments
were for handset chips, while a high-proportion of those shipments were for
GPRS chips, whose margins are well over 40%.
However, MediaTek has also posted a conservative outlook for second quarter
revenues, indicating April orders will be flat on March. Also constraining sales
growth this quarter will be seasonal effects in the PC segment and the long
holiday during early May in China.
More information available at digitimes.com