Polarizer giant Chi Mei Material's December revenue is expected to be flat

The initial estimate for December revenue should be stable and is expected to hold steady with November revenue at around NT $1.6 billion. Overall fourth-quarter revenue was estimated at nearly T $5 billion, within a 5 percent quarterly reduction. Looking ahead to the first quarter of 2013, Chimei expects that the first quarter of 2013 should help mitigate the slow season effect, driven by growth in shipments of new size products. Chimei's first-quarter revenue is likely to remain in the T $5 billion range, flat or down single digits (within 10 percent) from the previous quarter, according to corporate estimates. In terms of earnings, Chimei Material's gross profit margin was lower in the fourth quarter of 2012 due to increased shipments of new sized TV polarizing panels. Although the yen exchange rate trend in the fourth quarter had a positive impact on the company's gross profit margin, it is estimated that Chimei Material's gross profit margin in the fourth quarter of 2012 is still at the 10 percent level, and quarterly earnings per share is estimated to be between 0.5 and NT $1. Earnings per share for 2012 as a whole are estimated at nearly T $3 to T $3.5. At present, the main product revenue source of Chimei Material is polarizer, which is mainly used in TV, monitor, notebook computer, small and medium-sized products, accounting for about 50%, 25%-30%, 10%-15%, 10% in order. Chimei is still its biggest customer, but the company is also developing other Japanese and Chinese clients.