TAIPEI -- Compal Electronics reported second-quarter net profit rose 1.1% year-over-year to T$3.237 billion ($98 million) on a 40% jump in sales to T$121.9 billion.

The company, the world's second-largest contract laptop maker, reported stronger demand for PCs and TVs during the June quarter.

For the quarter, gross margins fell 30 basis points sequentially to 4.7%.

The company reiterated its second-half outlook, predicting sales would rise 20% sequentially.