TAIPEI (Taiwan News) — Semiconductor company Nuvoton said Tuesday it was optimistic despite a decrease in last year’s revenue.

Nuvoton’s consolidated revenue was NT$31.92 billion (US$974.9 million) last year, a year-over-year 9.6% decrease, per UDN. Its gross margin was 37.9%, and net profit attributable to the parent company was NT$219 million, down approximately 90% year-over-year, with earnings per share at NT$0.52.

Nuvoton President Yang Hsin-lung (楊欣龍) acknowledged that the consumer electronics market remained sluggish since much of the company’s revenue comes from the unstable Chinese market, per CNA. He also noted the auto market has been undergoing inventory adjustments for the past few quarters.

Regarding communication products, Yang said that competition among major smartphone makers has led to big fluctuations. However, due to Nuvoton’s strong market share, he said he expects communication product sales this year to remain stable compared to last year.

Additionally, Nuvoton said that demand for PC applications was strong in both the previous and current quarters. Computing-related revenue accounted for 22% of Q4 revenue last year, boosting the company.

Given that car inventory adjustments require time, the company said it expects stronger performance in Q3 and Q4.