Compal Electronics reported third-quarter revenue of NT$187.12 billion ($6.02 billion), up 4% from the previous quarter, as the world’s second-largest notebook manufacturer saw demand strengthen for computers and wearable devices. Net income surged 304% from the second quarter to NT$1.95 billion, with earnings per share reaching NT$0.45.
The Taipei-based company maintained operating margins at 1.4% while gross margins held at 5.7%, signs that its restructuring efforts are stabilizing profitability even as market conditions remain challenging. Operating income rose 2% to NT$2.67 billion.
The quarterly performance couldn’t offset broader pressures. Nine-month revenue declined 17% to NT$566.66 billion from a year earlier, while net income dropped 43% to NT$4.62 billion. The company cited strategic product portfolio adjustments and market competition for the decline.
Compal’s board approved a $229 million increase in U.S. investments, including $425 million in fresh capital for subsidiary Compal USA Technology, while reducing planned investment in another American unit. The company also plans to issue up to $600 million in convertible bonds with a five-year maturity to fund expansion.
The manufacturer, which produces notebooks for Lenovo, HP and Dell, competes with larger rival Quanta Computer in a market facing sluggish demand for traditional PCs.
