HannStar Board saw its net profits jump in the second quarter of 2012, thanks to growth in its core business and non-operating income. Gross margin for the quarter climbed to 8.9% from 6.9% in the first.
HannStar Board president Norman Shu credited the higher gross margin to copper price falls, improving management efficiency, and a favorable product mix. In the second quarter, the sales ratio for high value-added products targeting server and network communications applications grew, Shu noted.
Meanwhile, HannStar Board saw its capacity utilization rate rise substantially in the second quarter, which lifted its gross margin further, Shu said.
HannStar Board announced consolidated revenues of NT$16.56 billion (US$553 million) for the second quarter, up 23% on quarter. Consolidated sales totaled NT$29.99 billion for the first half of 2012, jumping 129% from a year ago.
Along with the revenue jump, HannStar Board’s net profits also expanded by a robust 137% on year to NT$330 million in the second quarter. EPS for the quarter came to NT$0.75.
However, Shu is cautious about the business outlook for the third quarter. Shu estimated that HannStar Board’s utilization rate will slip to 70-80% in the quarter from 90% in the second quarter, and revenues are set to see a sequential decrease.
The availability of Microsoft’s Windows 8 should be able to spur PC replacement demand, Shu commented, adding that an anticipated pick-up in notebook PCB orders would drive HannStar Board’s sales growth in the fourth quarter. Nonetheless, overall shipments for 2012 are likely to be lower than the 86 million units shipped in 2011, according to Shu.
HannStar Board is currently the largest supplier of notebook PCBs.