ASUS and Gigabyte See Finances Fall in January

Like so many other companies on the IT market, ASUS and Gigabyte seem to have taken the time to give some info on their financial performance, and it seems January wasn't overly favorable in terms of revenues.

As end-users know, the first quarter of any year is known as the slow season, as end-users aren't keen on buying too much, not after the holiday shopping sprees.

This, naturally, has an effect on the sales and profits of any supplier of hardware, and ASUS and Gigabyte seem to have experienced this first-hand.

As reported by Digitimes, Gigabyte announced revenues of NT$5.01 billion for January, 60% of which were accounted for by its motherboard business.

The figure does show an on-month jump, oddly enough, of 32.8%, but the on-year progress was a drop of 8.97%.

Unfortunately, having been among the first companies to sell mainboards based on Intel's 6-Series chipset, it was highly affected by the recently discovered flaw.

Intel's compensation plans will determine just how much money Gigabyte ends up losing over this, especially knowing that demand is unlikely to grow for the rest of the quarter.

Meanwhile, ASUS reported revenues of NT$19.86 billion, which is the equivalent of US$688.99 million.

On a yearly basis, this corresponds to a drop of 12.49%, while the on-month fall was of 9.75%.

With consolidated revenues having reached NT$22-25 billion for the month (as expected), the company now expects to suffer losses (revenue fall) of NT$1.5 billion in February.

That number is equivalent to 2% of the overall amount for the ongoing second month of 2011.

What's more, as far as the entire Q1, 2011 goes, the finances should end up suffering a similar overall drop of 2%, again because of the Cougar Point flaw.

What remains is for both companies to be doubly diligent during the second quarter, so as to make up for the losses in Q1.