Asustek reports losses in 4Q 2018 due to Smartphone Business

For this first time ever (that we know of) ASUS has reported a loss in the last quarter of 2018, mainly due to its struggling smartphone business. Asustek has already begun reorganizing and adjusting its smartphone strategy in the first half of 2019.

The company reports a net loss of NT$2.82 billion (US$91.5 million) or EPS of negative NT$3.80 for the fourth quarter of 2018, due mainly to a one-time loss of NT$6.2 billion stemming from its smartphone business restructuring. The company's net profits for 2018 went down 73% on year to arrive at only NT$4.24 billion with EPS reaching NT$5.70, a new low since 2009 reports digitimes:

The company reports a net loss of NT$2.82 billion (US$91.5 million) or EPS of negative NT$3.80 for the fourth quarter of 2018, due mainly to a one-time loss of NT$6.2 billion stemming from its smartphone business restructuring. The company's net profits for 2018 went down 73% on year to arrive at only NT$4.24 billion with EPS reaching NT$5.70, a new low since 2009 reports digitimes: Asustek generated consolidated revenues of NT$88.1 billion for the fourth quarter of 2018, down 6% sequentially and 15% on year. Gross margin for the quarter was 4.1% and operating margin was negative 7.2%. The company's 2018 gross margin was 10.6% and operating margin was 0.8%. Asustek has already begun reorganizing and adjusting its smartphone strategy in the first half of 2019. The company's PC business is expected to see a revenue decline of around 5-10% sequentially and its motherboard/graphics card business will have an around 5% drop in the first quarter because of seasonality as well as negative factors including Intel's CPU shortages and US-China trade tensions. The company expects its smartphone business to be back on track in the second half of 2019, while its PC business will also begin see growth during the period. Asustek said it will distribute dividends of NT$15 per share in cash.