East Tender expects increasing 5G optical filter shipments in 2H20

Thin-film optical filter maker East Tender Optoelectronics has seen its shipments begin gaining momentum in the second quarter of 2020 and expects its revenues to grow quarter by quarter in the second half of the year.

Having seen its revenues ebb 15% on year to NT$60.38 billion (US$2.01 million) in the first quarter, the company expects its sales to improve significantly starting the second quarter as it has resumed shipments of 5G devices such as DWDM (dense wavelength division multiplexing) filters to Chinese clients in April, according to company chairman CT Chen.

For the second half of the year, the company will also resume its shipments of 5G products to clients in Korea in July, including SK Telecom, after shipments of related devices have been halted due to the coronavirus pandemic, Chen revealed.

The company has also delivered 5G product samples to clients in the US for trial production and verification, paving the way for volume shipments in the second half of the year, Chen added, noting that overall demand for 5G products in 2020 will come out better than expected.

In addition to DWDM filters for 5G applications, demand for LWDM (LAN WDM) products also has been picking up starting the second quarter, Chen noted.

East Tender is also keen on ramping up its capacity and plans to purchase additional three coating machines from Japan for production of DWDM filters, having already had 11 such machines, the company said.

East Tender also plans to debut on Taiwan's over-the-counter securities market in early July 2020.

The company's revenues came to NT$25.38 million (US$838,300) in April, up 11.38% on year. EPS for the first quarter was NT$0.36.