MediaTek internally has revised downward its revenue estimate for the second quarter of 2011, due to a combination of factors including price competition in the mature 2.5G market, slower-than-expected growth in smartphone demand in China, and supply chain problems caused by Japan's recent earthquakes, according to industry sources.
MediaTek has internally estimated second-quarter revenues will grow by only a single-digit rate sequentially, the sources said. The company originally set a target of over 10% growth on quarter, the sources revealed.
MediaTek is unlikely to see its EPS rebound to over NT$3 in the second quarter, the sources estimated. ESP for the first half of 2011 may fall below NT$6, compared to more than NT$10 during the same period of previous years, the sources indicated.
In response, MediaTek said guidance for the second quarter will be disclosed during the company's upcoming investors meeting. MediaTek added the company does not comment on market speculation.
MediaTek shares closed down 2.5% at NT$339 (US$11.67) on the Taiwan Stock Exchange on April 14. The price scored the lowest in eight trading days.