* Q3 net loss totals $92.27 million due to one-time swap
* Core PC business revenue to be cut to 70 pct in 2014
* Smartphone, tablet revenue to be 20 percent in 2014
By Michael Gold
TAIPEI, Nov 13 Taiwan's Compal Electronics Inc
, the world's second-largest contract manufacturer of
notebook PCs, posted its first-ever quarterly loss, but promised
an aggressive push next year into mobile devices like tablets
and smartphones to raise revenues.
The company, which recently nabbed orders for Apple's
next-generation iPhone, according to supply-chain
sources, said on Wednesday it suffered a third-quarter net loss
of T$2.73 billion ($92.27 million), mainly due to a T$4.9
billion one-time loss from a share swap by its telecom carrier
arm Vibo with Taiwan Star in a divestment.
The company will start making Apple devices starting next
year. It also makes computers for Acer Inc and Lenovo
Tablets and smartphones will occupy a greater share of the
company's revenue going forward, chief financial officer Gary Lu
told analysts during an earnings conference.
The company plans to pare its core business of producing
notebook PCs from 82 percent of its revenue this quarter to 80
percent in the fourth quarter and 70 percent in 2014.
Lu said he expects combined smartphones and tablet revenue
to make up 20 percent of the company's revenue in 2014, with
more than 15 million tablets expected to ship next year, double
this year's output.
In September, Compal Electronics announced it would buy the
entirety of its subsidiary, handset maker Compal Communications
, a move that analysts view as the main driver of the
push into mobile and next-generation devices from slow-growth,
low-margin traditional PCs.
According to research firm IDC, global PCs sales fell nearly
10 percent in the third quarter of 2013 from a year earlier.
"This is a necessary step for them," said Wanli Wang, an
analyst at CIMB Research in Taipei. "With consumer preferences
changing the way they are, if they continue focusing on
notebooks, there isn't any new catalyst for growth."
Before the earnings announcement, the company's stock had
fallen 2.1 percent, versus a 1.1 percent fall for the broader