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Pegatron sees non-PC revenue rising up to 50 percent in third quarter

TAIPEI (Reuters) - Taiwanese contract manufacturer Pegatron Corp sees revenue in its communications and consumer electronics segments growing 40-50 percent in the third quarter compared to the last as it ramps up shipments for major clients like Apple Inc and Sony Corp.

The company is grabbing more orders from Apple while the California-based tech giant diversifies its suppliers and is the sole assembler for cheaper iPhone models to be released next month, according to sources.

"It does look like Pegatron will do better in H2 because of its non-PC segment. It will mostly come from Apple's cheaper iPhone and Sony's PlayStation 4," said Daiwa Securities analyst Steven Tseng.

Pegatron said it also expects its operating profit margin to improve this quarter, after slipping 0.9 percentage points to 1.3 percent in the previous quarter due to an increase in setup expenses for new products.

"We expect revenue in the non-computing segment to grow by 40 to 50 percent in Q3 due to new consumer products. Q4 will also be higher," said company CEO and President Jason Cheng in an investor conference.

Notebook shipments will decline by 5 to 10 percent, however, while motherboard and desktop computer shipments will decline by 10 to 15 percent.

Technology blog AllThingsD reported on Sunday that Apple is expected to present its redesigned iPhone on September 10.

Pegatron currently makes older smartphone models for Apple, including the iPhone 4S and iPhone 4, as well as the iPad Mini and is set to help supply the upcoming cheaper iPhone model that will come with five to six colored plastic casings, sources said.

Pegatron reported on Monday a net profit of T$1.4 billion ($46.79 million) in the April to June quarter, below a median forecast of T$1.8 billion by 15 analysts, polled by Thomson Reuters I/B/E/S.

The figure compares to a net profit of T$2.3 billion in the first quarter and T$1.9 billion in the second quarter a year earlier.

Shares of Pegatron closed down 0.77 percent ahead of earnings announcement, versus a 0.6 percent rise in the broader market.

(Reporting by Clare Jim; Editing by Matt Driskill)

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