Daily Management Review

ASUS profit reaches a record yet revenue falls


ASUS has released results of III quarter, fiscal year 2016. Revenue of the manufacturer was $ 3.4 billion, an increase over the quarter by 14%, but decrease by 3% for the year.

Operating profit for the year slipped by 15% to $ 122.7 million. Net profit in annual and quarterly terms increased by 42% and 45%, respectively, and reached $ 171.6 million, which was the best result for the last 13 quarters on the basis of 3-month period of July-September 2016. In addition, ASUS had the highest revenue since January to March 2013 (6.06 billion NT dollars).

Net profit per share amounted to NT $ 8 ($ 0.25) compared to 5.6 Taiwan dollar in the previous quarter and 5.7 Taiwan dollars a year ago. Since January 2016, total EPS reached 19.2 Taiwan dollars (about $ 0.60), whereas in the same period of 2015 it was equal to 16.9 Taiwan dollar, writes DigiTimes.

Management of ASUS predict that controlled operational risks will allow Asustek to continue steady growth in revenues in the current quarter. The Taiwanese electronics maker expects that proceeds from PC production sale will increase by 0-5% in quarterly terms; sales of smart phones will rise by 10-20%, and tablets will remain the same.

In 2016, ASUS will ship around 19 million laptops, which is approximately at the 2015 level. The company's smart phone supplies are unlikely to reach 25 million, as originally expected. At the same time, shipment of medium and premium segments are growing. Deliveries of ASUS motherboards will reach 17-17.5 million units, while shipment of graphic cards - 5 million units.

The vendor’s forecasts operating and gross margin were at 3,75-4,25% and 12-14%, respectively.

At the upcoming in January next year's CES 2017, Asustek Computer plans to introduce its first smartphone with support of augmented reality technology and Google Tango platform.

According to Head of ASUS Jerry Shen, smartphone ZenFone AR will get better performance and functionality at a competitive price. He also said that in the II quarter 2017, ASUS plans to release a new-gen flagship smartphone called ZenFone 4 with improved cameras.

The following year, the company intends to release a VR headset with cameras, sensors and controllers. These features will make the gadget distinct from already existing HTC Vive and Oculus Rift models.

In July, IDC released statistics on the global PC market in the second quarter of this year. The industry continues to show a negative trend. IDC’s data takes into account shipments of desktop computers, workstations, laptops, ultrabooks and Chromebooks. X86 Servers and tablets (including connect keyboard) are not considered.

In the period from April to June inclusive, about 62.4 million PCs were delivered around the world. This is 4.5% less compared to the second quarter of 2015, when the market volume was estimated at 65.3 million units.

Analysts noted that the decline was not as significant as predicted: experts, in particular, gave a figure of about 7.4%. This situation is explained by restoration of demand in the US market, where sales of computers rose by 4.9% year on year.

The world’s largest PC manufacturer was Lenovo with 21.2% share. In the second quarter of 2015, this Chinese company controlled 20.7% of the industry.

The second place was occupied by HP, which share for the year increased from 18.9% to 20.8%. Dell, for the year managed to strengthen its position from 14.6% to 16.0%, closed the top-three. The company was followed by ASUS and Apple with result of 7.2% and 7.1% vs. 6.6% and 7.4% a year earlier, respectively.

source: digitimes.com

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