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Etron shares fall after offices raided

Shares of Etron Technology Inc (鈺創科技) plummeted by the 7 percent daily limit yesterday after prosecutors raided the integrated circuit design house on Wednesday.

Etron shares closed at NT$37.25 (US$1.13) on the GRETAI Securities Market, compared with a 0.63-percent increase in the over-the-counter market.

Hsinchu prosecutors and investigators searched Etron's Hsinchu headquarters in connection with an investigation into alleged insider trading. Three officials, including a financial manager, were questioned.

The three were sent to the Taipei District Prosecutors' Office for more questioning on Wednesday night.

The company posted a deficit of NT$117.21 million, or negative NT$0.37 per share, for the second quarter last year.

A Financial Supervisory Commission inspection report said that before that quarterly report was announced last year, a large number of Etron's shares were sold. The seller reportedly made more than NT$10 million.

Prosecutors also suspect the price of Etron's shares was manipulated last year because it jumped from NT$20 to NT$50.

Prosecutors said Etron chairman and president Nicky Lu (盧超群) was suspected of insider trading and would be questioned soon.

Lu was at Etron's headquarters during the search. However, he was not questioned by prosecutors at that time, Etron said in a statement.

Etron has denied any wrongdoing and said that its operations would not be affected by the search.

The company posted earnings of NT$225.26 million, or NT$0.65 per share for the first quarter, compared with earnings of NT$298.08 million, or NT$0.87 per share, in the same period last year. Sales increased by 41.9 percent to NT$5.09 billion for the first five months of the year.
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