Fabless IC firm MediaTek has reported NT$6.59 billion (US$230 million) in consolidated revenues for May 2011, down 13.5% on month. Consolidated revenues for the first five months of 2011 amounted to NT$34.08 billion, slipping 37.6% from a year ago.
Industry observers attributed the weak May results to weak procurement by clients plus falling demand for white-box handsets due to a government crackdown in China.
MediaTek's consolidated revenues for April and May totaled NT$14.2 billion. The company previously stated that its sales guidance for the second quarter remains unchanged at NT$20.9-22.3 billion.
MediaTek's second-quarter results could just meet the low-end target, the observers said. However, the company is likely to see June sales grow substantially on a ramp-up in shipments of its single-chip MT6252 solutions, the observers added.
As major rival Spreadtrum Communications will not begin volume shipments of its new handset chips until the middle of the third quarter, MediaTek should enjoy a short-term advantage over Spreadtrum in China's 2.5G handset chipset market with its MT6252, the observers indicated. Nonetheless, development of MediaTek's chip portfolio for 3G handsets and smartphones remains a key factor to the company's future growth, the observers noted.