Fabless IC firm MediaTek saw its third-quarter consolidated revenues increase 11.4% sequentially, higher than its targeted 5-10% growth.
MediaTek has announced September sales slid 4.6% on month to NT$7.93 billion (US$261 million). Consolidated revenues for the third quarter of 2011 amounted to NT$23.38 billion, slightly above its NT$22-23 billion guidance range.
Clients actually finished their buildups of inventory for China's National Day holiday in advance, MediaTek indicated. Sales climbed 16.3% sequentially in August, but then fell in September. Despite the contraction, overall sales for the third quarter still beat expectations, the company said.
MediaTek added that the company will not be able to provide its fourth-quarter sales guidance until the end of October. Customer order visibility remains unclear, it said.
Market watchers expect MediaTek's sales for October and November to be supported by rising demand for the company's 3G handset solutions, as well as short lead-time orders. And then, December sales will be driven by clients' inventory restocking prior to the Lunar New Year holidays, according to the watchers.
In addition, the combining of sales of Ralink Technology following its acquisition are expected to buoy MediaTek's sales performance in the fourth quarter of 2011, the watchers said.
Earlier in 2011, MediaTek announced its planned merger with Ralink with MediaTek to be the surviving company. The transaction is scheduled to close on October 1.