Elan Microelectronics : August Revenue of NT$692 Million, Hit a New High in 26 Months

[Hsinchu] ELAN Microelectronics, a major touch controller IC design house in Asia, announces that its consolidated net sales for August 2016 amounted to NT$692 million, hitting a new high since nearly twenty six months. Increase of 30% YoY and 15.2% MoM respectively, both MoM and YoY are already showing growth for four consecutive months.

The main reason for the August revenue hitting a new record high is that both touch controller and fingerprint applications are driving the outcomes. Consolidated revenues from touch controller applications accounted for 62%. Sales from non-touch controller related products accounted for 38%.

ELAN indicated that the higher revenue in August 2016 was mainly due to the revenue increase in Touchscreen IC, Touchpad module and Pointing Stick (PST) applications in NB which accounted for 24.5%, 15.6% and 18.5% MoM respectively. At the same time, Fingerprint ID IC shipments also increased compared to that of last month.

ELAN pointed out that because Microsoft is fully promoting the Touch NB with active pen, thus driving NB manufacturers to strongly promote and sell Touch NB. It is in our favor for raising the overall 3Q16 Touch NB market shipments.

Meanwhile, ELAN is also accelerating in the Mobile Payment applications' market. Owing to the rise of Mobile Payment system, Fingerprint ID applications have been extended. Fingerprint ID feature in smartphones, NBs, tablets and smart cards will be an important application device. The next step is the spread of mobile payment system to wearable devices, automotive, thoroughly linking various consumer applications, expanding the market applications domain and the outlook is very promising.

Currently, smartphones with Fingerprint ID from brand flagship expanding to mid-range and low-end. In 2016, Fingerprint ID feature has already become a standard in smartphones. ELAN, since 1Q16 has subsequently expanded the production scale. Fingerprint ID features also began to be incorporated into tablets and NB products, and ELAN also had volume production shipments in 2Q16 and 3Q16 separately.

Meanwhile, in the Mobile Payment application, there's a gradual expansion in promoting Smart Card, which is the most potential application product, covering credit cards, financial cards, etc. Personal usage of smart card quantity is not limited to one, hence, the long-term market is optimistic.

At the same time, smart cards with fingerprint ID can effectively prevent rampant counterfeit cards, reduce disputes among credit card organizations, banks and users caused by card theft or lost cards and other credit card fraud to protect the security of personal properties. ELAN is expected to send samples to the customers in 2H16.

In order to quickly seize this huge market opportunity, and meet the requirements of the Payments Agreement, ELAN provides a wide range of different reactive solutions, and cooperate with Fingerprint ID well-known player, the Swedish provider Precise Biometrics for the Fingerprint ID device market, vying for an annual 2 billion unit market share of smartphones, tablets, NBs and smart cards, thereby hoping to drive revenue and profit growth.

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