Consumer IC design house ALi has revised its guidance for the fourth quarter of 2011 expecting its consolidated revenues to increase 13-17% sequentially. This is a revision from previous sales guidance expecting sales to fall somewhere between a decrease of 5% to an increase of 3% sequentially. The company credited the better outlook to rising orders for set-top box solutions.

"Due to the fact that analogue to digital broadcasting transition in Western Europe is expected to be completed in the first half of next year, orders of DVB-T STB from that region have been increasing since November and such increases were even more obvious in the past couple of weeks," ALi said in a statement.

ALi saw its November sales increase over 10% sequentially to NT$344.2 million (US$11.4 million). Growth was driven by growing demand for its HD and SD STB chips, and orders from China and other emerging markets.

ALi also expects its fourth-quarter gross margins to be 44-47%, higher than its previously-targeted 42-43%. The company noted that sales of its HD STB chips and other high-end solutions account for a larger proportion of total sales in the quarter.

Operating margins for the fourth quarter are now projected to reach 15-17%, better than the 12-13% estimated previously, according to ALi.

Fellow STB chip suppliers MStar Semiconductor and Novatek Microelectronics, however, have reiterated their guidance given previously.