Powertech Technology Inc (力成), a memorychip tester and packager, yesterday said revenue this quarter is expected to grow by between 5 percent and 10 percent from last quarter’s NT$9.43 billion (US$306.65 million) on the back of strong demand for DRAM for mobile devices and graphics.
Sales for last month outpaced the NT$3.28 billion made in March, president Hung Jia-yu told an investors conference.
Sales of flash memory products accounted for 40 percent of Powertech’s total revenue last quarter, and is expected to grow this quarter and next quarter, due to strong orders for high-end smartphones from Powertech’s existing clients, Hung said.
However, revenue generated from sales of logic integrated circuit (IC) products is likely to be flat this quarter from last quarter, but might gain steam next quarter on recovering demand from clients, Hung said.
Logic IC products accounts for about 30 percent of the company’s total sales.
“The higher average selling prices of the advanced DRAM business for mobile and graphics will also help the company’s gross margin continue to improve from this quarter,” Hung said.
Powertech’s gross margin for the first quarter of the year improved 3.2 percentage points to 17.7 percent from a year ago, due to the firm’s efforts in reducing costs and improved product mix, Hung said.
Gross margin increased 1.5 percentage points from the previous quarter’s 16.2 percent, he said.
That helped the company achieve a better-than-expected 29.1 percent annual increase in net income to NT$771 million last quarter, or NT$1.01 per share.
The company said its earnings growth last quarter also reflected strong performance in the DRAM segment.
“The new plant in Xian, China, that is in partnership with US-based Micron Technology Inc has made significant contribution to DRAM sales last quarter,” chairman Tsai Du-kung (蔡篤恭) said.
Overall, revenue contribution from DRAM increased to 30 percent of total revenue last quarter from 26 percent in the previous quarter, the company said.
The company aims to continue improving its gross margin this year and develop new technologies with major clients to catch the market trends in the next few years, Tsai said.
Meanwhile, the company’s board has approved the distribution of a cash dividend of NT$3 per share based on last year’s net profit of NT$4.42 billion, or NT$4.24 per share, with a payout ratio of 70.75 percent.
The planned cash dividend suggested a dividend yield of 5.28 percent, based on the company’s closing share price of NT$56.8 yesterday in Taipei trading.
Hung said that Powertech plans to maintain a high dividend payout policy.
Merida Industry Co (美利達) has seen signs of recovery in the US and European markets this year, as customers are gradually depleting their inventories, the bicycle maker told shareholders yesterday. Given robust growth in new orders at its Taiwanese factory, coupled with its subsidiaries’ improving performance, Merida said it remains confident about the bicycle market’s prospects and expects steady growth in its core business this year. CAUTION ON CHINA However, the company must handle the Chinese market with great caution, as sales of road bikes there have declined significantly, affecting its revenue and profitability, Merida said in a statement, adding that it would
i Gasoline and diesel prices at fuel stations are this week to rise NT$0.1 per liter, as tensions in the Middle East pushed crude oil prices higher last week, CPC Corp, Taiwan (台灣中油) and Formosa Petrochemical Corp (台塑石化) said yesterday. International crude oil prices last week rose for the third consecutive week due to an escalating conflict between Israel and Iran, as the market is concerned that the situation in the Middle East might affect crude oil supply, CPC and Formosa said in separate statements. Front-month Brent crude oil futures — the international oil benchmark — rose 3.75 percent to settle at US$77.01
RISING: Strong exports, and life insurance companies’ efforts to manage currency risks indicates the NT dollar would eventually pass the 29 level, an expert said The New Taiwan dollar yesterday rallied to its strongest in three years amid inflows to the nation’s stock market and broad-based weakness in the US dollar. Exporter sales of the US currency and a repatriation of funds from local asset managers also played a role, said two traders, who asked not to be identified as they were not authorized to speak publicly. State-owned banks were seen buying the greenback yesterday, but only at a moderate scale, the traders said. The local currency gained 0.77 percent, outperforming almost all of its Asian peers, to close at NT$29.165 per US dollar in Taipei trading yesterday. The
RECORD LOW: Global firms’ increased inventories, tariff disputes not yet impacting Taiwan and new graduates not yet entering the market contributed to the decrease Taiwan’s unemployment rate last month dropped to 3.3 percent, the lowest for the month in 25 years, as strong exports and resilient domestic demand boosted hiring across various sectors, the Directorate-General of Budget, Accounting and Statistics (DGBAS) said yesterday. After seasonal adjustments, the jobless rate eased to 3.34 percent, the best performance in 24 years, suggesting a stable labor market, although a mild increase is expected with the graduation season from this month through August, the statistics agency said. “Potential shocks from tariff disputes between the US and China have yet to affect Taiwan’s job market,” Census Department Deputy Director Tan Wen-ling
RSS