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Pegatron achieves net profit in 2011

Monica Chen, Taipei; Joseph Tsai
The Board of Pegatron Technology has passed the company's financial report for 2011 with net profit reaching NT$110 million (US$3.72 million) and earning per share (EPS) of NT$0.05, benefiting mainly by the increased ODM quote and new notebook orders in the second half of 2011, while it also helped the company to turn a profit in the second half from losses in the first.

For the first quarter of 2012, Pegatron expects the result to be better than expected with a sequential drop below 10% because of the delayed game console and notebook orders.

Pegatron announced revenues of NT$371.7 billion for 2011 and the net profit of NT$974 million in the fourth quarter of 2011 helped cover up the losses in the first half of the year. The company's consolidated revenues reached NT$599.9 billion with consolidated net profit reaching NT$3.3 billion. The Board also decided it will not distribute a dividend.

Market watchers also pointed out that Apple continues to raise its iPhone orders to Pegatron as well as placing orders for new iPad, so they are optimistic about Pegatron's growth in 2012.

As for notebook orders, Asustek is still the largest client of Pegatron with a proportion of only around 50%, followed by Toshiba, Acer, Fujitsu, Lenovo and Hewlett-Packard (HP).

After the investigation of Foxconn Electronics (Hon Hai Precision Industry), Pegatron has also recently received noticed for Fair Labor Association (FLA) to raid its plants in China for investigation.