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name : Admin	date : 2005년 08월 11일 13:13:20	hits : 1860
title : Operating Profit Rate At System Chip Makers Continues Rising
Operating Profit Rate At System Chip Makers Continues Rising 

Wednesday, August 10, 2005 

Despite a drop in prices and sluggish market situation, leading system semiconductor makers such as Mtekvision, Core Logic, Telechips and Dawintech are anticipated to continue gaining high profitability through the second half of this year.

According to industry sources, Mtekvision posted 20% in operating profit rate in the first half while Core Logic, Telechips and Dawintech raised 17%, 14% and 9%, respectively. These figures are much higher than average operating profit rate of 5.49% of Kosdaq listed enterprises last year. Industry observers forecast that these companies will reap better business results in the second half given that it is traditionally a thriving period of a year.

Operating profit rate at Mtekvision rose from 19% in the latter half of last year to 19.5% in the first quarter of this year and to 20.1% in the second. The company could increase profit rate by purchasing wafer for reduced prices while improving yield. "Since we plan to ship more new products such as multimedia chips in the latter part, we expect to see rising trends in profit rate," said Lee Seong-min, CEO of the company.

Core Logic posted 19% in operating profit rate in second quarter, up 3% point from the previous quarter, attributing to fast increase in sales of highly profitable multimedia application processors (MAPs). "We expect the proportion of MAPs will further grow in the second half, and we will enhance price competitiveness of low-priced chips by reducing costs," said Hwang Gi-su, CEO of Core Logic.

Despite lackluster MP3 player market in the first half, Telechips posted 14% in operating profit rate in this period by expanding into mobile phone market. Quarterly operating profit rate, in particular, rose from 10% in the first quarter to 17% in the second. "The operating profit rate improved by reducing fixed costs and production costs of new chips. With an increase in demand for MP3 players that support Janus digital rights management (DRM) system and new mobile phones, we anticipate to see continued rise in profit rate in the latter half," said a manager at Telechips.

With an increase in sales propelled by shipment of controllers for PDP TVs, Dawintech posted operating profit ratio of nearly 10% in the first half. "We pin hope on higher profitability in the second half as we plan to launch volume production of timing controllers for TFT LCDs while increasing supply of controllers for PDP TVs in this period," said Hwang Geum-cheon, executive director at the company.
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