Taipei, Aug. 18 (CNA) Delta Electronics Inc., one of Taiwan's leading power management device suppliers, has expressed optimism toward its earnings outlook in the third quarter of this year on the back of solid demand for power supplies used in servers and components for handheld gadgets.
In an investors conference held on Friday, Delta Chairman Yancey Hai said he expected the company will have a better third quarter than the second quarter, while a gross margin is expected to stay at 23 percent, the same as in the second quarter.
For the second quarter, Delta posted NT$4 billion (US$133 million) in net profit or NT$1.66 per share, up from NT$3.66 billion in net profit or NT$1.52 per share recorded in the first quarter.
The second quarter consolidated sales rose 15 percent from a quarter earlier to NT$46 billion which also grew 5 percent from a year earlier.
In the first half of this year, Delta recorded NT$86.01 billion in consolidated sales, up 2.49 percent from a year earlier with a gross margin at 21.8 percent.
In the six month period, the company registered NT$7.65 billion in net profit, compared with NT$5.67 billion posted a year earlier, while its earnings per share for the same period stood at NT$3.18, compared with NT$2.36 recorded a year ago.
Hai said while the company is upbeat about the outlook for the third quarter, a slowdown in the world's economic fundamentals is expected to raise uncertainty over the fourth quarter.
He said it is worth watching closely how the debt problems in the eurozone will evolve and how the U.S. economy will develop. Concerns over a weakening purchasing power in Japan, and worries over a slowdown in the economies in China and other emerging countries are also expected to have an impact on global demand.
Hai said it is too early to say whether the launch of Microsoft's Windows 8 operating system will boost demand for notebook computers in the fourth quarter, adding that product prices will serve as one of the decisive factors affecting demand.
He said if prices of ultrabook computers fall to a range between US$700 (NT$21,000) and US$800 from the current US$1,000, it is likely that buying interest in the models bundled with the Windows 8 operating system will be boosted.
Still, the executive said he remains confident in the sales of power supplies used in servers and demand for components used in handheld devices.
(By Han Ting-ting and Frances Huang)