Compal's May Revenue Up 22% YoY; Server Business Expected to See Double-Digit Growth in Q3

(Central News Agency, reporter Wu Jiahao, Taipei, June 9) EMS provider Compal Electronics today announced its May consolidated revenue of NT$70.462 billion, a decrease of 2.1% month-on-month but an increase of 22.3% year-on-year, mainly benefiting from the growth of its personal computer (PC) and server businesses. The company expects server revenue to continue to grow by double digits sequentially in the third quarter.

Compal's consolidated revenue for the first five months of this year was NT$343.745 billion, an increase of 7.7% year-on-year.

In May, Compal shipped 2 million notebook computers, an increase of 200,000 units month-on-month. Compal maintains its view that PC shipments in the second quarter will grow by a low single-digit percentage (about 1% to 3%) quarter-on-quarter, while server shipments will grow by a high double-digit percentage (over 50%) quarter-on-quarter. Smart device performance in the second quarter is expected to be lower than in the first quarter.

Looking ahead to the third quarter, Compal told CNA reporters that servers are the main growth driver for its non-PC business, and it expects server revenue to maintain a double-digit sequential growth rate in Q3. PC products are still affected by component shortages, with Q3 growth expected to be in the low single digits quarter-on-quarter. Smart devices are facing declining consumer electronics demand, leading to weaker growth momentum in the second half of the year. (Editor: Zhang Liangzhi)