Taipei,Sept.4,2012--Simplo Technology Co.,Ltd.,maker of battery packs in Taiwan,recently forecast third-quarter revenue to grow 11%to 13%quarter-on-quarter(QoQ),due to increasing demand from low-priced tablet PC and emerging products.
Due to changing product structure,however,Simplo`s profit margin in the third quarter is estimated to decline to 10.2%QoQ from 11.8%,the lowest in recent years.
Sun Fu-hsiang,chairman and CEO,pointed out at the recent shareholders meeting the overall discouraging environment,and the declining traditional notebook PC market,but booming tablet PCs and PDAs won't see Simplo absent from the game.
Profit margins from mobile-device application market are relative lower,Sun said.
In the second quarter,Simplo had revenue of NT$14.38 billion(US$479.2 million),up 21.6%QoQ and a record quarterly high,translating into net earnings of NT$947 million(US$31.6 million),up 24.9%QoQ,with first half cumulative net earnings per share(EPS)of NT$5.5(US$0.18).
The company predicts third-quarter revenue to be between NT$16 billion and NT$16.2 billion(US$533.3 million and US$540 million),up 11%to 13%QoQ.
Simplo has been developing high-power lithium-ion battery packs for electric bicycles and electric scooters,having achieved initial results and expects to reap more fruitful rewards in 2013.
Sun said new application products have much higher profit margins,though smaller shipments,and over the next three to four years Simplo aims to generate about NT$5 billion(US$166.7 million)revenue per year from these new products.
