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Taiwan's Innolux posted NT$5.27 billion loss, suffered its sixth consecutive quarterly loss

Miaoli-based LCD panel maker Innolux Corporation suffered a sixth consecutive quarterly loss as the COVID-19 pandemic drove down the utilization rate of assembly lines in China.

Innolux posted a loss of NT$5.27 billion for the first quarter of 2020, compared with a loss of NT$6.86 billion in the final quarter of last year (2019) and a loss of NT$3.73 billion a year earlier. Gross margin was minus-1.8 percent, up from minus-2.1 percent in the previous quarter.

Innolux noted that the delayed resumption of its Chinese production assembly lines due to COVID-19 pandemic containment measures and also transportation restrictions results to a big loss.

“Demand for flat panels used in notebook computers and monitors is stronger this quarter, aided by work-from-home and remote schooling trends,” the company said. “However, demand for TV panels looks sluggish as consumers hold back on TV purchases due to the rescheduling of the Tokyo Olympic Games and UEFA Euro 2020,” Innolux posted.

Innolux will try to rebound this quarter as demands go stronger due to work from home order by several companies. Shipments of panels for PCs and monitors in the second quarter are expected to expand, Innolux said.

TV panels are the main source of revenue for Innolux, making up 36 percent of overall revenue last quarter.

Shipments of smaller panels are expected to grow about 15 percent quarter-on-quarter, with the average selling price unchanged, the company said.

Innolux expects demand for smaller panels, and those used in PC monitors and TVs, to rebound as nations gradually emerge from lockdown in the coming months.

The Miaoli-based company said that it would be more prudent with its management of cash flow and capital expenditure, but would continue to invest in technology upgrades and cost improvements.


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