MediaTek's consolidated revenues are likely to drop below NT$5 billion (US$169 million) in February 2011, and rebound to over NT$7 billion in March, according to sources familiar with the company. Overall sales for the first quarter of 2011 should meet the company's low-end target of NT$19.5 billion, the sources claimed.
MediaTek's sales for February were affected by fewer working days in the month, the sources said, adding that March sales will bounce back to January levels.
MediaTek generated NT$7.53 billion in January consolidated revenues. The company estimated consolidated sales for the first quarter at up to NT$21 billion.
MediaTek reported a particularly-weak fourth quarter of 2010, when consolidated revenues declined 19.5% sequentially to NT$22.68 billion.
In additional news, MediaTek is unlikely to adjust its quotes for 2.5G handset chips later in the first quarter while acknowledging that rivals will take no further action to cut prices in the short-term, industry sources in China have revealed. However, there is room for MediaTek's handset IC ASPs to drop in the second quarter due to a series of product roll-outs, the sources speculated.
Previous reports quoted unnamed market sources as saying that several handset companies in China were putting on hold their orders as they anticipate MediaTek could lower prices as early as the end of the first quarter.