MStar Q2 net profit up almost 20 percent


CNA

TAIPEI–MStar Semiconductor Inc., one of Taiwan’s leading integrated circuit designers, said Saturday that its net profit for the second quarter rose almost 20 percent from a quarter earlier on solid global demand for TV chips.

During the April-June period, MStar posted NT$1.27 billion (US$42.2 million) in net profit, up 19.77 percent from the first quarter, with earnings per share at NT$2.05.

In the second quarter, MStar’s consolidated sales rose 5.4 percent from a quarter earlier to NT$8.23 billion on the back of an increased number of working days in the three-month period.

MStar said that as sales grew, its gross margin for the second quarter stood at NT$45.02 percent, up 1.79 percentage points from a quarter earlier, the IC designer.

MediaTek Inc., another Taiwanese IC designer, bagged more than NT$600 million in Q2 returns from its investments in MStar.

During the same period, MediaTek, a smartphone and tablet chip designer, posted an almost 80-percent sequential increase in net profit totaling NT$6.72 billion thanks to the rising popularity of mobile devices in the global market.

MediaTek has been planning a merger for fully bringing MStar under its umbrella, after having completed a tender offer in August 2012 to acquire a 48-percent stake in MStar.

However, the proposal has been repeatedly blocked, as China has voiced opposition, citing anti-trust concerns.

MediaTek Chief Financial Officer David Ku said his company remained upbeat about the merger plan, and would continue to communicate with Chinese authorities on the issue.