AU Optronics (AUO) has reported a 9.8% sequential drop in its consolidated revenues to NT$42.47 billion (US$1.39 billion) for February, with industry observers commenting that last month's sales already reached bottom for the year.

AUO said revenues for February rose 87.2% compared to the same period in 2007.

According to the company, AUO shipped 6.77 million large-size panels in February, down 6.6% sequentially because of fewer working days in the month. But small- to medium-size panel shipments increased 2.6% sequentially to 12.18 million units.

The industry sources said AUO's sales will rebound in March, during which it will make up shipments that were delayed in February by the snow storms in China. Judging from the market situation, demand for PC-use panels has already started picking up in March, the sources remarked.

AUO previously predicted that its first-quarter shipments of large-size panel would drop about 10% sequentially.