Realtek Semiconductor has just registered a record profit in the first quarter of this year. The news arrives as the Networking IC design specialist saw its net profits climb to a new high for the fourth consecutive quarter.
According to a DigiTimes report, the chip maker recorded net profits of 3.06 billion New Taiwan Dollars (109.2 million US Dollars) for the first quarter of this year. This marks a growth of 16.4 percent sequentially and a strong growth of 87.3 percent year on year. Realtek posted an overall revenue of 23.34 billion US Dollars in the first quarter of 2021, which is a rise of 5.7 percent on quarter that also marks a new record high.
The company further added that its April revenue decrease of about 3 percent on month to 7.81 billion New Taiwan Dollars. This was primarily due to the firm facing shortage in supplies. The company even notes that its orders from its clients still remain robust, although its supply is unable to catch up with its orders. Furthermore, Realtek has also seen its shipments be limited due to a tight foundry capacity, along with shortage of upstream components and other raw materials as well.
The company is also being optimistic regarding its sales prospects this year, as per the report, while it is also projecting the rise in sales for its Ethernet networking chips, switch controllers and Bluetooth chips on year in 2021. Although, its solutions related to TV are expected to remain flat this year. Realtek is expecting robust sales through the first half of 2022 as well, however, the tight foundry capacity isn’t expected to ease until after next year.
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