Hon Hai Sees April Revenue Decline to NT$294.4 Bn. on Low Season

Mainly dampened by a low season, Hon Hai Precision Industry Co., Ltd., world's largest EMS (electronics manufacturing service) firm by size, witnessed revenue dive 4.34% to NT$294.41 billion (about US$9.813 billion) in April compared to NT$307.819 billion (US$10.293 billion) in March, according to the firm's latest financial report.

However, the report shows revenue being 0.92% more than last April, attesting to the effect of seasonal recession to the firm's performance this April, when its shipment of PCs, communication devices and consumer electronics all showed slight downturns.

For the first four months of this year, Hon Hai's cumulative revenue totaled NT$1.1774 trillion (US$392.466 billion) for a 6.97% increase year on year, shows the report.

As to outlook in the rest of the second quarter, institutional investors opine that Hon Hai, Apple Inc.'s major contract manufacturer of iPhone, is likely to see its performance keep weakening due to seasonal factors, until iPhone 6 is launched in the second half of this year to revive growth.

From a viewpoint of Hon Hai's current product mix, institutional investors pointed out that the firm's shipment of communication devices, including networking instrument and base station equipment, is forecast to fluctuate very slightly; and that of PCs, servers and storage equipment to gain steam from an expected wave of new PC replacement following the retirement of Windows XP. Nevertheless, since its major customers mostly concentrate on promoting new products in the second half to lead to slack demand, the firm's shipment of consumer electronics is therefore expected to drop notably in the second quarter. (SC)

Hon Hai's Monthly Revenue in 2014
Month	Jan.	Feb.	Mar.	Apr.
Revenue	NT$314.551 Bn.	NT$260.625 Bn.	NT$307.819 Bn.	NT$294.441 Bn.

Source: Market Observation Post System