The motherboard maker also said it expected sales and margins to improve in the second half on new orders from Hewlett-Packard (HP) and Singapore-based Flextronics and growing outsourcing to Elitegroup Computer Systems (ECS).
Under the company's latest guidance, its revenue forecast was revised down 5.1% to NT$9.5 billion. Pre-tax profit target was slashed by 83.4% to NT$150 million, reflecting its aggressive reduction of inventory and exchange-rate losses from the appreciation of the Taiwan dollar in the second quarter.
Abit posted a net loss of NT$300 million for the first half of the year, according to the company. For July, despite an estimated 23% gain in revenue from June, it expected a loss because two-fifths of its sales came from inventory clearance, which usually means selling products at unprofitably low prices.
Looking ahead, third and fourth-quarter revenues will rise sequentially from NT$2.52 billion to NT$3.71 billion on the new orders from HP and Flextronics, boosting monthly revenues in the fourth quarter to a record NT$1.237 billion, the company said. Average gross margin for the second half is now expected to rise to 14.15% from 10.15% in the first half, thanks to low-cost outsourcing to ECS.
Source: DigiTimes