Pegatron expects its performance in the first half of 2018 to outperform that seen a year ago, and is optimistic about demand for consumer electronics devices this year.

Pegatron CEO SJ Liao pointed out that the company's combined revenues in the first two months of 2018 increased around 20% on year, providing a solid base for its first-quarter revenues to also enjoy on-year growth. Liao also expects on-year growth for its second-quarter revenues.

Liao noted that demand for its gaming-related augmented reality (AR) and virtual reality (VR) applications has been rising since early 2018. For its communication product line, the company is currently adjusting some of the devices to meet clients' requirements. However, its PC product shipments are likely to be weaker than those of 2017 because of overall weak sales in the PC market.

Pegatron reported consolidated revenues of NT$1.19 trillion (US$40.53 billion) for 2017, up 3.1% on year; gross margins of 3.9%; net profits of NT$14.68 billion, down 24.1% on year; and EPS of NT$5.66, down 24.5% on year. The company saw a loss of NT$1.56 billion from currency exchange in 2017.

As for the fourth quarter of 2017, Pegatron's consolidated revenues were NT$377.56 billion, up 12.1% sequentially; net profits of NT$3.73 billion, down 36.5% on year; and EPS of NT$1.42. Currency exchange loss came to NT$375 million in the quarter, more than that of the third quarter.

The company's weak profits in 2017 were due to labor shortages that sharply increased related costs, the appreciation in the Taiwan currency, and expenses for capacity expansion.

Pegatron's February consolidated revenues were NT$76.83 billion, down 36.53% on month, but up 2.13% on year. Combined consolidated revenues for the first two months of 2018 went up 20.39% on year to reach NT$197.9 billion.

For 2018, Pegatron chairman TH Tung has recently noted that the company's capex for 2018 will be more than that of 2017 and the company will use the budget to establish more factories and equipment for its component subsidiaries.