WT Microelectronics (3036 TT), a Taiwan based IC distributor, today held its earnings conference for the third quarter of 2014 and announced financial results and future outlook. Consolidated revenue for the third quarter of 2014 was NT$28.72 billion, representing an increase of 11.70% compared with the second quarter of 2014. Gross profit margin for the quarter was 5.71%, operating profit was NT$691 million, operating profit margin was 2.41% and earnings per share was NT$1.56.
Consolidated revenue of NT$28.72 billion for the third quarter of 2014 was in line with the guidance that revenue to be between NT$27.5 and NT$29.1 billion, which hit record highs for two consecutive quarters. Revenue contribution from 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 0.21 ppts sequentially. Due to an appropriate expenses control, operating expenses ratio dropped from 3.51% for the second quarter to 3.30% for the third quarter, resulting in a sequentially flat operating profit margin. The ratio for net income after taxes increased from 1.78% for the second quarter to 1.93% for the third quarter, and this drove the net income after taxes increased by 20.86% sequentially. Inventory turnover day was better than expected, dropped from 50 days for the second quarter to 49 days for the third quarter.
Looking forward, the company now expected consolidated revenue for the fourth quarter of 2014 to be between NT$28.3 billion and NT$29.8 billion; gross profit margin to be between 5.5% and 5.7%; operating expenses to be slightly up sequentially; operating profit margin to be between 2.1% and 2.3%; inventory turnover day to be flat compared with the third quarter of 2014.