Networking device makers still positive over 2Q20, but not certain for 2H20

Many Taiwan-based networking device suppliers have posted significant revenue gains for March and the first quarter, and they remain positive about the second-quarter outlook, as pandemic control efforts such as shelter-in-place orders initiated by a number of governments have boosted demand for networking devices, according to industry sources.

Upgrade demand for broadband equipment and information security from enterprises that are requiring their employees to work from home also helped boost shipments at related networking device suppliers in March, said the sources.

While echoing the view of some datacenter server suppliers expecting continued order dynamics in the second quarter, most networking device makers have voiced concerns about their business prospects for the second half of 2020, as resumption of logistics in China still remains an issue and the pandemic uncertainty is also persistent, the sources noted.

Accton Technology saw its March revenues grow 36.98% on month and 6.68% on year to NT$4.651 billion (US$154.46 million) and first-quarter revenues edge up 5.44% on year to NT$11.724 billion.

Sercomm has reported revenues of NT$2.415 billion for March, up 7.07% on month and 8.48% on year, with the company attributing the growth to upgrade demand. Unlike many fellow firms, Sercomm expects its sales to continue moving upward quarter on quarter in the second half.

Arcadyan Technology’s revenues surged 25.3% on month but fell 10.3% on year to NT$2.495 billion in March and January-March revenues dropped 20.7% on year to NT$7.143 billion. The company attributed the annual sales declines to issues about capacity resumption at its plant in China, but expects the operations of its supply chain to improve starting the second quarter.

Senao Networks has posted revenues NT$604 million for March, up 14.24% on month but down 6.26% on year. For the first quarter, revenues edged down 2.81% on year to NT$1.77 billion.

―Digitimes