WT Microelectronics (3036 TT), a Taiwan based IC distributor, today held its earnings conference for the third quarter of 2013 and announced financial results and future outlook. Consolidated revenue for the third quarter of 2013 was NT$23.274 billion, representing an increase of 10.73% compared with the second quarter of 2013. Gross profit margin for the quarter was 5.83%, operating profit was NT$489 million, operating profit margin was 2.10%, net income before taxes was NT$ 447 million, net income after taxes was NT$ 360 million, ratio for net income after taxes was 1.55%, and earnings per share was NT$1.07.
Consolidated revenue for the third quarter of 2013 was approaching the higher end of the original guidance of NT$ 23.5 billion and hit a record high. Revenue contribution from the low margin business such as computing and smartphone both increased. As the effect of product mix change, gross profit margin for the third quarter was in line with guidance to decrease by 0.12 ppts sequentially. Due to an appropriate expenses control, operating expenses ratio decreased from 3.94% for the second quarter to 3.73% for the third quarter and resulted in a higher operating profit margin which increased from 2.01% for the second quarter to 2.10% for the third quarter. Net income after taxes increased to pass NT$ 37 million. As a consequence of significant decrease in inventory, Inventory turnover day was better than expected, dropped from 59 days for the second quarter to 53 days for the third quarter.
Looking forward, the company now expected consolidated revenue for the fourth quarter of 2014 to be between NT$21.6 billion and NT$22.8 billion; gross profit margin to be between 5.7% and 5.9%; operating expenses to be slightly down sequentially; operating profit margin to be between 1.85% and 2.05%; inventory turnover day to be slightly up compared with the third quarter of 2013.