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MStar posts record revenue in Q1 on strong chip sales

2012/05/08 18:40:51

Taipei, May 8 (CNA) MStar Semiconductor Inc., the world's biggest supplier of chips used in flat-panel TVs, reported Tuesday record-high revenue in the first quarter of this year thanks to better-than-expected sales of mobile phone chips, TV chips and set-up boxes.

The Taiwanese chip maker announced consolidated revenue of NT$8.92 billion (US$300 million) for the first quarter of 2012, down 9.0 percent from the previous quarter but up 8.7 percent from a year earlier, according to a statement.

Its net income was NT$1.54 billion, representing a quarterly drop of 7.5 percent and an annualized increase of 7.5 percent, with earnings per share of NT$2.91.

Considering the impact of seasonality, MStar forecasts that its second-quarter revenue will be between US$300 million and US$318 million, indicating a quarterly growth of zero to 6 percent compared with the first quarter.

Also on Tuesday, MStar posted April consolidated net sales of NT$3.1 billion, down 9.2 percent from March and up 9.5 percent from the same month last year.

MStar and its Taiwanese rival MediaTek Inc. played dominating roles in the global TV chip market in 2011, with the two companies' combined share exceeding 56 percent, according to research firm IHS iSuppli.

MStar generated US$857 million in revenue from its TV chip sales, 8 percent higher than those in 2010, and accounted for 39.3 percent of the world's TV chip market, iSuppli said.

The research firm said the dominance of MStar and MediaTek in the global TV chip market was the result of their efforts to penetrate the huge China market and build solid business ties with Chinese TV manufacturers.

According to iSuppli, MStar took a 65 percent share of the LCD TV chip market in China last year.

(By Jeffrey Wu)