LONDON – Fabless chip company Spreadtrum Communications Inc. (Shanghai, China) has reported that its sales revenue for the first quarter of 2012 was $161.1 million, down 16.2 percent sequentially but up 17.5 percent from the same quarter a year before.
The company made net income of GAAP net income of $24.3 million, compared with $35.2 million in the previous quarter and $27.5 million in 1Q11.
"During the first quarter, we laid a strong foundation for 2012 growth in smartphones with more than 200 design wins for our 1-GHz TD-SCDMA and 1-GHz EDGE/Wi-Fi smartphone chipsets. Our smartphone platform is now commercially available and we expect to ship more than one million units in the second quarter," said Leo Li, chairman and CEO of Spreadtrum, in a statement.
The company expects 2Q12 revenue to be between $170 million and $175 million, a sequential and year-over-year increase of 6 to 9 percent.
One reason for the decline in profit was declining ASPs for chipsets amid increasing competition. However, Spreadtrum said it has secured more than twenty-five additional premium smartphone design wins for its TD-SCDMA baseband modems, mostly with first tier customers in China.
In the first quarter, Spreadtrum made a $10 million equity investment in handset brand Micromax, which is the third largest handset brand in India.
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