LCD driver IC firm Novatek Microelectronic expects to post revenues of between NT$10.8 billion (US$348 million) and NT$11.2 billion for the first quarter of 2017 representing a sequential decrease of up to 4%.
Gross margin and operating margin for the quarter are estimated at 27-28.5% and 10.5-12%, respectively.
Novatek reported consolidated revenues for the fourth quarter of 2016 fell 11.2% on year and 6.7% sequentially to NT$11.22 billion. The company attributed the sequential decrease to "the seasonality of end-demand particularly for SoC products." Gross margin climbed to 28.20% in the fourth quarter from 27.71% in the third, thanks to lower costs and a favorable product mix.
Novatek generated operating profits of NT$1.33 billion in the fourth quarter of 2016, while operating expenses came to NT$1.83 billion. The company posted net profits of NT$1.26 billion in the fourth quarter, down 17.2% from a year earlier, with EPS reaching NT$2.06 compared with NT$2.49 during the same period in 2015.
Novatek announced revenues for 2016 declined 10.3% on year to NT$45.65 billion, with gross margin falling 0.06pp to 28.36%. The company generated net profits of about NT$5 billion in 2016, down 21.8% from a year ago, with EPS coming to NT$8.22.