March consolidated revenues were $ 5.76 billion
Primax Electronics(4915TT/4915.TW) today reported a consolidated revenue of NT$5.76 billion for March, indicating a year-on-year increase of 2% from NT$5.64 billion over the same period in 2020, and a monthly increase of 36% from February's NT$4.22 billion. Cumulative revenue in the first quarter of this year totaled NT$17.16 billion, an annual increase of 27%, but a quarterly decrease of 12%.
Due to the negative economic impact caused by the COVID-19 pandemic during the same period last year, resulting in low base period results, with the expansion of revenue and the optimization of product portfolio in the first quarter of this year, gross profit margin and operating profit ratio are expected to improve significantly compared with the first quarter of last year. In response to the supply shortage of key components, the inventory for IC/electronic components or parts will be increased to a safety stock of 6-8 weeks.
The second quarter will see an outlook of the following trends and developments: For smart interface devices, the underlying popularity of home office needs (work from home, WFH) will stabilize the demand for computer peripherals and e-sports related products. The expected launch of a new smart door lock product Primax will continue to inject new momentum into the business. Automotive ADAS (sensory camera modules with applications in electric vehicles and ADAS advanced driver assistance systems) products will benefit from the demand forof major EV manufacturers in the United States and continue to grow for visual imaging solutions. The new webcam project is also expected to contribute financially. Acoustic products will see benefits from the increasing demand for professional and high-end audio systems to drive revenue and shipments for new projects.
In a press statement, Primax indicated that it expects to benefit from the continuous optimization of product portfolios this year and has considerable confidence in business profitability growth momentum. In terms of major product lines: The demand for home office and gaming-related interface devices continues to be strong, laying a solid foundation for its profitability. Automotive electronics (sensory camera modules used in electric vehicles and ADAS advanced driver assistance systems) are also expected to benefit from the high growth momentum of U.S. EV manufacturers and post exponential growth in sales. Primax will also strive to increase the proportion of its acoustic products used in high-end products and optimize customer portfolios. Therefore, the profit of acoustic products is expected to stabilize and grow substantially compared with last year. Smart IoT products (such as fleet management, camera modules for police law enforcement, etc.) and smart home products (smart door locks and doorbells) as well as other commercial and industry applications and strategies will also gradually realize contributions to the business and result in a new traction of growth for the company.