MediaTek has reported revenues of NT$19.66 billion (US$657.33 million) for August, increasing 2% sequentially and 54% on year.

For the July-August period, revenues totaled NT$38.93 billion, accounting for 68.54% of the low-end revenue target of its third-quarter guidance of NT$56.8-61.2 billion.

MediaTek is expected to post revenues of over NT$20 billion for September due to strong orders for 4G solutions, particularly from handset vendors in China, according to industry sources.

However, MediaTek is more concerned about its gross margin for the third quarter, citing increasing price competition.

Some market sources expect MediaTek's third-quarter gross margin to drop to 47.5-49.5% compared to 49.6% recorded a quarter earlier, according to a Chinese-language Economic Daily News (EDN) report.