MediaTek Inc (—üᢉÈ), which supplies chips primarily to Chinese smartphone brands including Xiaomi Corp (¬•Ä), yesterday posted its weakest monthly revenue in the past year due to sluggish demand in emerging markets and fewer working days last month.

Revenue contracted 37.9 percent to NT$13.24 billion (US$401.1 million) last month, compared with Januaryfs NT$21.33 billion. The figure represented a rebound of 36.93 percent from NT$9.67 billion the previous year.

MediaTek has to make NT$17.94 billion this month to hit its revenue target of NT$52.5 billion for this quarter, which would be a quarter-on-quarter contraction of 15 percent. The company made NT$34.57 billion in January and February.

The company forecast that intensifying pricing competition from Qualcomm Inc and Chinafs Spreadtrum Communications Inc (“Wu), as well as weak demand would cap its gross margin at a historical low of about 38.5 percent this quarter.

By: DocMemory
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