Ralink Technology Corp. : 3Q10 Financial Results Announcement
08/05/2011| 02:26am US/Eastern
August 04, 20113Q10 Financial Results Announcement
Ralink technology (TAIEX: 3534) Reported 2011 Second Quarter Results Issued by: Ralink Technology Corp.
Issued on: August 4, 2011 Hsinchu, Taiwan, August 4, 2011 – Ralink Technology Corp. (TAIEX: 3534) today reported its 2011 second quarter financial results with 36.2 million units, including Wi-Fi and ADSL chips, shipped in the second quarter, representing a 21% growth in shipments compared to the first quarter of 2011, and a 66% increase in shipments compared to the same period of last year. Wi-Fi and ADSL products made up 78% and 22% of shipments respectively. The broadband market accounted for 46% of total unit shipments while retail, PC/NB, and consumer electronics (CE) sectors respectively accounted for 30%, 16%, and 9% of total unit shipments. Shipments through American and Asian sales channels outperformed other regions. Overall, demand was robust and shipment growth remained positive.
Financial results for the second quarter ending June 30, 2011 also improved, with consolidated sales revenue of NT$2,451 million, up 14.9% compared to the first quarter and up 24.9% from the same period of last year. As for financial ratios, the gross margin reached 39.00%, compared to the last quarter number 37.57%, showing an increase on a quarter over quarter basis, in line with its predicted value, with the ASP remaining at historical levels. The net income for this period is NT$259 million, and the EPS is NT$1.48. Although results so far for this year have been positive, the company is remaining its commitment to its original targets for 2011, until results for later this year become known.
The company reports that the 2011 Q2 results were better than predictions made at the last investor’s conference. The main reason behind this has been the successful launch of new products in the consumer electronics segment. While demand for networking products has remained steady, growth in CE and PC/NB product sales led the increase in shipments. CE sales growth is primarily based on demand from target products such as TVs, high definition wireless transmission Blu-ray DVDs, tablet PCs, and e-Readers, which include Wi-Fi functionality.
For the future, developments in the TV market suggest further growth in sales for Ralink in the CE segment. The move by the Japanese government to digital TV and the planned adoption of digital TV by an increasing number of countries such as Taiwan signals increased opportunities for Ralink. Similarly, the growing popularity of wireless functionality in the new generation of TVs makes Ralink confident of the potential in the consumer electronics segment. Regarding the merger with MediaTek, Ralink stated that based on the current execution value of employee stock options, dividends, and share buybacks, the share swap ratio has changed slightly from 3.15 Ralink shares for one MediaTek share, to 3.1560 Ralink shares for one MediaTek share. The new swap ratio was approved by the Board of Directors Meeting today. The consolidation date with MediaTek is still set for October 1 this year. In accordance with the provisions of the law, please note that Ralink will not announce its financial results in the future. Consolidated Financial Results, Q2 2011 (in NT$1,000)
About Ralink Technology
Ralink Technology Corporation is a leading innovator and developer in the wireless home networking and broadband access semiconductor markets. Ralink products are recognized for their superior performance and reliability, rich feature set, low-power consumption, and high levels of integration. Ralink’s patented OptiLink™ technology extends Wi-Fi applications from traditional PC networking to a range of digital multimedia and handheld devices including mobile phones, digital cameras, printers, digital televisions, Blu-ray players, set top boxes, video game consoles and broadband access gateways. Ralink Technology was founded in 2001 with headquarters in HsinChu, Taiwan, and offices in the United States, China, Europe, and Japan.
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