WT Microelectronics (3036 TT) held the Investor Conference today to update the unaudited financial results of the fourth quarter of 2017 and business outlook. Consolidated revenue for the fourth quarter of 2017 was NT$59.84bn, up 31.7% YoY. Operating margin was 1.81%. Net profit was around NT$700mn.

For the 2017 unaudited financial results, consolidated revenue was NT$189.4bn, up 31.4% YoY. Operating margin was 2.07% and operating profit was around NT$3.9bn, up 48% YoY. Earnings per share was NT$5.26.

For the revenue breakdown by applications in 2017, all applications delivered solid growth performance. Communication sector grew 33% YoY, due to the contribution from new vendor. Computing segment increased 32% YoY, thanks to market share gain and Maxtek’s acquisition. Consumer area grew 26% YoY, in light of the trend of Internet of Thing (IoT) and Maxtek’s acquisition. Industrial sector grew 30% YoY, benefited from strong automation demand. Automotive segment increased 23% YoY, thanks to continued semiconductor content growth.

For the outlook of the first quarter of 2018, revenue is expected to be NT$48bn to NT$51bn, up 25.1% to 32.9% YoY, gross margin is expected to be 4.4% to 4.6%, and operating margin is expected to be 2.0% to 2.2%. All applications are expected to decline QoQ, due to customers’ production and inventory adjustment, but maintain double digit YoY growth. Communication sector is expected to decrease QoQ most, due to smartphone customers’ inventory correction.

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 vendors’ consolidation. All applications are expected to show high growth, benefited from Communication infrastructure demand recovery, strong Datacenter growth, smart home demand booming, Industrial automation penetration increasing, and continued Automotive semiconductor content increase. WT Microelectronics will continue improving operation efficiencies, upgrading operation system, enhancing financial control system, and strengthening human resource management in order to improve the capability of value added service in the supply chain and increase long-term return on shareholder value.