Realtek Results 30/07/2017

Realtek announced its FY17 Q2 result with consolidated revenues of NT$9.95 billion ($330 million) and net profits of NT$930 million ($30.7 million), resulting in a net margin of 9.3%. Quarterly revenues increased by a marginal 0.3% on a quarterly basis while net profits witnessed a significant surge of 82%.

For FY17 Q3, the company is quite optimistic about demand for networking, PC and consumer electronics applications as it is a traditional peak season for the chip industry. The company expects to post a gross margin of 42%-44% in FY17 Q3, and sequential growth in revenues for FY17 H2.

In addition, sales of Realtek’s USB Type-C chip solutions will continue to grow as demand is ramping up, but sales of the new SSD controllers may be constrained by the ongoing tight supply of NAND flash.