WT Microelectronics (3036 TT), a Taiwan based IC distributor, today held its earnings conference for the second quarter of 2014 and announced financial results and future outlook. Consolidated revenue for the second quarter of 2014 was NT$25.711 billion, which exceeded the higher range of the original guidance of NT$ 25.5 billion and represented an increase of 11.75% compared with the first quarter of 2014 and an increase of 22.33% over the second quarter of 2013. Gross profit margin for the quarter was 5.92%, operating profit was NT$620 million, operating profit margin was 2.41%, net income before taxes was NT$595 million, net income after taxes was NT$457 million, the ratio for net income after taxes was 1.78%, and earnings per share was NT$1.29.
Consolidated revenue for the second quarter of 2014 was better than expected and hit a record high. Gross profit margin slightly improved to 5.92% and was better than expected. As a consequence of higher revenue, operating expenses slightly increased accordingly. However, operating expenses ratio dropped from 3.77% for the first quarter to 3.51% for the third quarter, and resulted in a higher operating profit margin, which increased from 2.14% for the first quarter to 2.41% for the second quarter. The ratio for net income after taxes increased from 1.47% for the first quarter to 1.78% for the second quarter, and this drove the net income after taxes increased by 35.13% sequentially. Inventory turnover day was better than expected, dropped from 53 days for the first quarter to 50 days for the second quarter.
Looking forward, the company now expected consolidated revenue for the third quarter of 2014 to be between NT$27.5 billion and NT$29.1 billion; gross profit margin to be between 5.7% and 5.9%; operating expenses to be slightly up sequentially; inventory turnover day to be flat compared with the second quarter of 2014.