Wed, Aug 08, 2012 - Page 14 News List

Vanguard reports strong Q2 profits, but cautious on Q3

By Kevin Chen  /  Staff reporter

Foundry operator Vanguard International Semiconductor Corp (世界先進) said on Monday that second-quarter earnings jumped 32 times from the first quarter’s, but was cautious about the outlook for this quarter as customers adjust inventories.

Net profit reached NT$772.01 million (US$25.74 million) in the second quarter, compared with NT$24.1 million in the previous quarter and NT$362.89 million in the same quarter last year, the company said in a statement.

Earnings per share were NT$0.48 in the second quarter, compared with NT$0.02 in the first quarter and NT$0.22 the year before, company data showed.

Second-quarter revenue was NT$4.55 billion, up 44.5 percent quarter-on-quarter and 13.47 percent year-on-year, on shipments of 357,000 wafers, up 43 percent from the previous quarter and 15 percent from a year earlier.

The company, which also supplies driver ICs used in PC and TV flat panels, said second-quarter gross margin climbed to 27.71 percent from 11.29 percent in the first quarter, but would likely fall to between 24 percent and 26 percent this quarter.

“As gloomy end market demand and customers have turned more cautious on building up inventories, we expect wafer shipments to fall by 4 to 6 percent quarter-on-quarter and fab utilization rates to be around 80 percent,” vice president Tseng Dong-liang (曾棟樑) said in a statement.

However, the blended average selling price will increase by 4 percent to 6 percent from last quarter as the company continues adjusting its product mix and diversifying its process technology, he said.

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