Q4 As mentioned on page 17 of Management Discussion and Analysis (“MD&A”) in the Annual Report, one of the factors contributing to the Company’s strong performance and turnaround is its new product breakthrough and significantly improved financial performance in the sensors division. (i) Can the company sustain this performance in financial year 2018? (ii) What are the major factors that could derail the achievement of this goal?
A4(i) The performance of GTB’s sensor division was dependent on the take-up rate of consumer product of its end customer. As mentioned, there was some inventory in the supply chain that needed to be depleted as well as the switch over to the next generation sensors at an earlier date, which would impact the performance of GTB’s sensor division from March-May 2018 with lower volume loadings. Nevertheless, as the new generation sensors -- started mass production in June 2018-- and incorporated into new customer electronic products in 2nd half of 2018, growth was expected in this segment year on year.
Latest Alliance Research pointed 2 important points: (1) The light sensor production volume has increased to 20 mil units per month and to further increase to 40 mil unit per month in August. This number is much higher than my estimation of 13 mil units per month.
(2) New smart device is expected to carry 2 light sensors instead of 1 unit in previous model.
"This should expand light sensor capacity by 24% to [46m units] per month (from 37m units previously) by July/August 2018. Likewise, capacity for the gesture sensors will also be increased by 3m units to [14m units] to cater for additional demand for an end-customer’s wireless headphone earbuds.
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UnicornP
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Posted by UnicornP > 2018-06-20 18:49 | Report Abuse
No need to rush. See the July results first.