Aten bullish on Q3 after record July 1

Aten International Co Ltd (宏正自動科技), which provides information technology infrastructure solutions, is optimistic about this quarter after reporting record revenue last month.

“We had a difficult start this year due to the US-China trade dispute … but things are starting to look better,” Aten chief financial officer Alex Chen (陳健南) told an investors’ conference in Taipei.

Aten has high order visibility through September, Chen said.

Revenue last month increased 12.11 percent year-on-year to NT$454.35 million (US$14.49 million), compared with cumulative revenue, which fell 5 percent to NT$2.41 billion over the first six months of this year, company data showed.

The company’s first-quarter revenue fell 9.2 percent to NT$1.16 billion from a year earlier, while second-quarter revenue only fell 1 percent to NT$1.25 billion, the data showed.

“We were affected by US tariffs, as 25 percent of our overall output goes there,” Chen said, adding that there is less concern over the round of tariffs due to take effect from Sept. 1.

“We are moving production of high-end products back to our plant in [New Taipei City’s] Sijhih (汐止),” Chen said, adding that the company’s production lines in Taiwan account for 45 percent of its overall production, while its plant in Shenzhen, China, makes up the remaining 55 percent.

Aten’s strategy over the next two to three years is to focus on Internet protocol data management, cyber security and control systems, Chen said.

Products using keyboard, video and mouse switch technology are the strongest driver in the company’s enterprise segment, contributing 29.5 percent, or NT$845 million, of sales in the first seven months of the year, up from NT$822 million last year, the company said.

IT infrastructure solutions for small and medium businesses are the second-strongest driver in the segment, contributing 23 percent, or NT$659 million, of sales, up from NT$646 million, thanks to new product sales, it said.

However, sales in other segments fell due to weak demand in Taiwan, China and the US, it added.

“We have new products lined up for this quarter,” Chen said, adding that the company would launch promotions in the next few months to boost demand.