Thu, Oct 13, 2011 - Page 11 News List

WPG posts better-than-expected consolidated sales

By Kevin Chen  /  Staff Reporter

Semiconductor component distributor WPG Holdings Co (大聯大投資控股) achieved slightly -better-than-expected consolidated sales last quarter after recently revised downward its sales guidance because of concerns about inventory adjustments in the PC supply chain.

WPG said on Tuesday in a stock exchange filing that consolidated sales last month reached NT$30.79 billion (US$1.01 billion), up 8.1 percent month-on-month and 34.5 percent year-on-year.

With combined sales in July and August of NT$57.11 billion, consolidated revenue in the third quarter hit NT87.9 billion, up 6.3 percent from the previous quarter and 31.7 percent higher than a year earlier, the company said.

Last quarter’s figure was also bigger than the high end of the company’s revised forecast of between NT$86.5 billion and NT$87.5 billion that it made last month.

In the first nine months, total revenue grew 34 percent to NT$250.22 billion from last year, company data showed.

While there are still near-term worries about sluggish demand and uncertainty about Hewlett-Packard Co’s plan to spin off its PC division, WPG said it had seen bigger revenue contribution from emerging markets, including China, that helped offset negative impacts.

Chinese sales accounted for almost 77 percent of the company’s revenue, followed by Taiwan’s 14 percent, Southeast Asia’s 6 percent and 3 percent from other areas, WPG said in the filing.

Last week, WPG announced that it plans to acquire Aeco Technology Co (大傳) in a share swap deal, which would add National Semiconductor Corp, Avago Technologies Ltd, -Fairchild Semiconductor International Inc and Intersil Corp to WPG’s customer pool.

“WPG should maintain above-industry growth from high exposure to the Asian supply chain and a string of small accretive acquisitions, which has allowed it to gain 2-3 points [market] share per year,” Credit Suisse said in a client note yesterday.

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