WT Microelectronics (3036 TT) held the Investor Conference today to update the unaudited financial results of the first quarter of 2018 and business outlook. Consolidated revenue for the first quarter of 2018 was NT$49.6bn, up 29.3% YoY, and operating profit margin was 2.10%, both were in line with guidance. Net profit was NT$580mn, up 15.3% YoY, and weighted average EPS was NT$1.05.

For the revenue breakdown by applications in the first quarter of 2018, all applications declined QoQ, due to seasonal customers’ production and inventory adjustment, but maintain double digit YoY growth. Communication sector decreased QoQ most, due to smartphone customers’ inventory correction.

For the outlook of the second quarter of 2018, revenue is expected to be between NT$51bn to NT$55bn, up 26.4% to 36.3% YoY, gross margin is expected to be 4.5% to 4.7%, and operating margin is expected to be 2.1% to 2.3%. All applications except Communication are expected to grow QoQ, due to stable demand growth, while Communication is expected to decline QoQ, due to continued smartphone customers’ production and inventory adjustment. However, all applications are expected to maintain double digit YoY growth.

For the 2018 outlook, WT Microelectronics maintains optimistic view on business outlook and expects strong growth continuously, thanks to global economies recovery, stable growth of semiconductor industry, and accelerating market share gain under the environment of semiconductor suppliers’ consolidation. In addition, WT board of directors proposed NT$2.5 cash dividend per share and approved the convening of the 2018 annual shareholders’ meeting on June 28, 2018.