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Siliconware doubles Q2 income

Siliconware Precision Industries Co (矽品精密), the world's third-biggest supplier of chip testing services, said its second-quarter net income more than doubled, boosted by growing demand for communication products and a significant increase in non-operating income.

The company, which counts chip makers IBM Corp and Xilinx Inc among its major customers, yesterday reported NT$3.49 billion (US$106.24 million), or NT$1.44 a share, for the second quarter, compared with a net income of NT$1.29 billion, or NT$0.58 per share, a year earlier.

In addition to rising demand, a respectable non-operating income of NT$826 million, about a quarter of the total earnings it made in the April-June period, was also one of the main reasons behind the strong growth, chairman Lin Wen-po (林文伯) said.

Siliconware booked just NT$203 million in non-operating income in the second quarter of last year.

But the company said it was not so certain about its prospects for the second half of the year.

"Messages from our customers show that visibility for the fourth quarter is vague," Lin told investors.

The firm may lower charges for chip testing services to help it ride out this period, he said.

"We expect revenues to grow by between 2 and 5 percent quarter-on-quarter on normal computer demand," Lin said, adding that factory usage would rise slightly in the current quarter from 90 percent last quarter.

Siliconware said this year would be a good one.

"Net income this year will exceed NT$10 billion, setting an all-time record," Lin said.

Lin was also confident about potential growth for next year because of a limited increase in capacity in the industry.

"Siliconware's second-quarter earnings were better than my estimate. But the company's uncertainty about the fourth quarter outlook dampened our anticipation," said Joyce Hsu (許宜君), a semiconductor analyst with Fuh Hwa Securities Investment Trust Co Ltd (復華投信).

Hsu said investors had hoped the company would give clear guidance on the final quarter, even though they have factored in uncertainty.

During the first six months, Siliconware has accumulated net income of NT$6.32 billion, or NT$2.62 a share, more than twice its NT$2.49 billion earnings in the same period of last year, according to the company statement.

The company posted NT$13.64 billion in revenues for last quarter, up 50 percent from a year ago.

Computer products accounted for the biggest share, or 40 percent, of revenues, with communications gadgets next at 30 percent, according to the company's statement.

Siliconware announced the quarterly results after the stock market closed. Shares in Siliconware rose 1.94 percent to NT$36.8 on the Taiwan Stock Exchange yesterday, while bigger rival Advanced Semiconductor Engineering Inc (日月光半導體) advanced 0.54 percent to NT$28.
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