Cage Chao, Taipei; Rodney Chan, DIGITIMES [Tuesday 6 November 2007]
Ralink Technology has reported that strong shipments of 802.11n chips boosted the company revenues to a record high in the third quarter, at NT$1.02 billion (US$31.77 million), with gross margins rising 4.5 percentage points sequentially to 46.93%.
Ralink said its net income for the third quarter amounted to NT$319 million. Accumulated sales for the first three quarters of 2007 totaled NT$2.71 billion, which is just shy of its entire 2006 revenues. Net income for the first three quarters totaled NT$783 million.
Ralink revealed that the strong rise in margins was due to the hike in the proportion of its 11n shipments. It noted that currently an 11n chipset sells for US$12-13, and Ralink, as the world's third largest 11n chip supplier, ships 100,000-200,000 11n chips per month.
Although Ralink has not provided a fourth-quarter forecast, industry observers have indicated that the market will continue to see an increase in 11n chip shipments, while shipments of other WLAN chips will still be buoyed by seasonality in the fourth quarter. The observers expect Ralink's fourth-quarter sales to grow 10% sequentially.
Ralink has predicted strong growth in the Wi-Fi market, with applications extending from PCs to consumer electronics and handsets.
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