SAN JOSE, Calif. -- Yageo Corporation (TAIEX: 2327 TW) today announced its first quarter results. Net consolidated sales of NT$ 6,503 million, up 3.7 % y-o-y and 3.0 % q-o-q. Gross margin dropped 4.3 percentage points to 22.3% due to the impacts of foreign exchange rate fluctuations, price hikes on raw materials, the rise of minimum wages in China and Taiwan, and fewer working days in Feb. Operating expenses as percentage of sales decreased to 9.9%, reflecting the continuous improvement of operating efficiency. Consolidated operating income reached NT$ 806 million with 12.4% of operating profit margin. Net consolidated profit before tax was NT$ 773 million, down 15.3% q-o-q. Net consolidated profit after tax in the first quarter reported NT$645 million, down 17.6% q-o-q, or NT$ 0.29 earnings per share.
Moving forward, Yageo expects stable market growth and moderate demand from end market. Meanwhile, Yageo will continue to focus on its core business and devote efforts in R&D, global resources integration, expansions of Europe and US markets, and operational efficiency.