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Novatek Microelectronics' Profit Slumps 28% in Q1; Shares Rally 10%

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-- Novatek Microelectronics (TPE:3034) posted first-quarter net income of NT$3.77 billion, down 28.4% from a year earlier, amid weaker smartphone demand, according to a Thursday Taiwan Exchange filing.

Shares gained over 1% in Friday's late morning trade.

Quarterly, profit rose 2.1%.

First-quarter revenue rose 1.4% quarter-on-quarter to NT$23.15 billion, supported by growth in the SoC business, though revenue declined 14.7% annually.

The company proposed a cash dividend of NT$23 per common share, representing a payout ratio of 85.61%.

For the second quarter, Novatek forecast revenue of NT$27.5 billion to NT$28.5 billion, with gross margin projected at 38% to 41% and operating margin at 16% to 19%, the filing said.

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