Circuits Assembly Online Magazine - Compal's Q2 Flat, Expects Stronger Q3

TAIPEI – PC maker Compal Electronics reported flat second-quarter earnings for its June quarter.

For the quarter, net profits were T$3.22 billion ($102 million), down slightly from T$3.25 billion year-over-year and roughly flat sequentially. The company attributed the drop to product mix.

Operating profits were T$2.32 billion, down 15% sequentially. The non-operating profit was T$1.4 billion, fueled by an investment gain of T$960 million and a foreign exchange income of T$180 million.

The operating profit margin was flat sequentially at 2.7%, while the gross profit margin rose 60 basis points to 5.3%.

Compal is the world's No. 2 laptop contract maker, behind Quanta Computer. Both companies expect 20% or more hikes in sales in the third quarter.