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Feb 17th, 2011
Pixart 1Q11 revenues could decline 20% sequentially, says chairman
Pixart Imaging, which specializes in CMOS image sensors, expects first-quarter 2011 revenues to decline 20% sequentially due to inventory adjustments by games console clients, company chairman Huang Sen-huang said during an investors meeting on February 15
With shipments of high-margin games console products down and quote reductions for mouse products, gross margin will fall below 40% to around 35-36%, according to Huang.
The Taiwan-based company is however, still bullish on the optical touch controller market and will enter the MEMS segment, Huang indicated, adding that 2011 sales should improve gradually each quarter.
First-quarter shipments of related component suppliers have been hampered by Nintendo lowering its shipment forecast for the Wii from 17.5 million units to 16 million units. Huang pointed out that the quarter ending in March is Japan's last fiscal quarter, and hence, Japan-based clients typically lower inventory for accounting purposes.
Optical touch controllers currently represent 5-10% of Pixart's revenues, Huang indicated, noting that in the future, Pixart will focus on the 10-to-30-inch consumer electronics segment.
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