Egis Reports Continuing Growth in Q3 Update, Warns of Potential Q4 Shipment Dip

Biometrics News: Egis Reports Continuing Growth in Q3 Update, Warns of Potential Q4 Shipment Dip

Taiwan-based biometrics specialist Egis Technology has issued a Q3 update for 2019, illustrating a continuing growth trend for the company.

Net sales for the quarter came in at just over NT 2 billion, compared to net sales of just under NT 1.6 billion in the third quarter of 2018. Quarter over quarter, revenues increased by nine percent, with Egis noting in a statement that the result was ‘better than our guidance of “mild” growth”.

Net income, meanwhile, came in at a little over NT 293.7 million, compared to a net income of just over NT 184 million a year ago, and a net income of roughly NT 227.7 million in the second quarter of this year.

Egis Technology is best known for its fingerprint sensor solutions, which have been integrated into numerous smartphones. Going forward, the company noted in the ‘Outlook’ section of its Q3 update that major customers have “requested not to carry inventory at year-end,” a development that “may result in some fluctuations” for Egis and lower total shipment volumes in the fourth quarter; but the company said this was viewed by its executives as a temporary matter, and emphasized that “we continue to see an increase in model counts,” presumably referring to the number of smartphone models integrating its technology.

Egis added that some of these smartphone models will launch in the first half of 2020, and said that its gross margin “will remain stable.”

November 13, 2019 – by Alex Perala