* Q4 net profit hits T$3.38 billion vs analyst estimates of
* Sees notebook shipment volume dropping 20-25 percent in Q1
* Sees Q1 revenue from non-computing business falling 15-20
(Recasts, adds background, details, company comment)
By Michael Gold
TAIPEI, March 24 Pegatron Corp, a main
assembler of goods for Apple Inc and other vendors,
will enhance its focus on high-growth mobile and communication
devices even as it sees a turnaround in PC sales in the near
future, the company said during its quarterly investor meeting
Communications devices grew from 13 percent of company
revenue in 2010 to 32 percent in 2013, according to company
president and chief executive officer, Jason Cheng, while
computing fell from 67 percent to 38 percent during the same
"Maintaining this kind of balance will be crucial for us
going forward," said Cheng, who also predicted a turn around in
the industry-wide decline in PC sales by the second half of this
The first quarter will see quarter-on-quarter declines
across the board, however, on weaker demand following the
holiday season and higher-than-expected revenue in the fourth
Chief financial officer Charles Lin said the company expects
revenue from its non-computing business to fall by 15-20 percent
in the first quarter from the previous three months.
The company, which also makes computers for vendors like
Toshiba Corp and Asustek Computer Inc, also
sees notebook shipment volume dropping 20-25 percent in the
first quarter from the previous three months. Motherboard and
desktop shipment volumes are also expected to fall 30-35 percent
in the first quarter on a quarterly basis, Lin said.
Pegatron earlier Monday reported a fourth-quarter net
profit of T$3.38 billion ($110.48 million), well above the
analyst estimates of T$2.84 billion and T$2.65 billion in the
same period of 2012, driven by greater-than-expected demand in
its computing sector and strong holiday sales.
The company reported full-year 2013 net profit of T$9.55
billion ($312.15 million).
The company is widely believed to be starting production
soon on the next model of Apple's popular iPhone, which many
view as a major profit driver going forward.
Pegatron competes against the likes of fellow Taiwan
contract manufacturer Hon Hai Precision Industry Co Ltd
for orders from Apple, which benefits from the
manufacturers' scale and cost efficiency.
Analysts say Apple's move toward diversification of its
supply chain should provide minimal risk to Pegatron, the
California-based tech giant's second-largest supplier after Hon
Apple in January issued a weak revenue forecast on
lower-than-expected iPhone sales, particularly in China.
(Editing by Matt Driskill)