“The client directly canceled all of its orders last month, which lowered our gross margin, as the client had requested high-specification orders with higher profit margin,” Lin told investors at an online earnings conference. The company yesterday reported that gross margin for last quarter declined due to order losses and said it had a conservative view about this quarter. As a result, there is a chance that the firm’s capacity utilization rate would drop in the fourth quarter, Lin said. The third-quarter gross margin of 65.6 percent was the lowest after 64.24 percent recorded in the first quarter last year, company data showed. “There is a figure for gross margin in my mind, and we will not accept orders with gross margins lower than that, although I cannot tell you how high this number is,” Lin said to investors.

Source: Taipei Times October 08, 2020 15:56 UTC