Sat, Nov 07, 2015 - Page 13 News List

Catcher sales to peak this quarter

By Lauly Li  /  Staff reporter

Catcher Technology Co (可成科技), which supplies metal casings for Apple Inc’s iPhones, yesterday said sales this quarter would reach this year’s peak year by growing15 percent from last quarter’s NT$21.4 billion (US$653.8 million).

“Thanks to our client’s strong demand, we think a quarterly growth of 15 percent in revenues is a reasonable estimate,” Catcher chairman Allen Horng (洪水樹) told a teleconference.

In the past quarter, net income hit a record of NT$8.15 billion, or earnings per share of NT$10.98, indicating an increase of 69.5 percent from last year’s NT$4.81 billion and 55.4 percent from the prior quarter’s NT$5.25 billion.

Horng said that he is also upbeat about the outlook for the first quarter of next year.

“Overall, we are positive and optimistic about the business outlook next year,” he said.

The smartphone segment would remain Catcher’s main growth driver next year, and the notebook computer and tablet device segments would also drive the firm’s revenue, Horng said, given that more clients adopt metal casings for non-smartphone devices.

The smartphone segment accounted for more than 60 percent of the firm’s revenue of NT$21.4 billion last quarter, while the contribution from the notebook segment declined from last year’s 30 percent to more than 20 percent this year, company spokesperson James Wu (巫俊毅) said.

“Although the notebook segment’s sales contribution declined this year, its revenues grew over the same period last year,” Wu said, citing higher average prices and orders.

Horng said the company’s major smartphone client is expected to adopt a new casing material for its next-generation handset, which would increase the complexity of metal casing technology and benefit the firm’s average price trend.

As part of its efforts to meet its clients’ growing demand, Catcher is to have “aggressive” capital expenditure next year to expand its production capacity, Horng said.

However, the exact amount of capital expenditure would not be disclosed until the client confirms the casing orders in the beginning of next year, he said.

Catcher has spent NT$16.7 billion in capital expense this year with its production capacity expanding by 30 percent from last year, Wu said.

When asked why would Catcher be aggressive about the capital expenditure next year when its order visibility is not clear, Horng said: “Catcher’s sales grew in tandem with the size of the capital expenditure over the past years ... it is Catcher’s and the main client’s mutual commitment.”

Domestic rival Casetek Holdings Ltd (鎧勝) on Thursday also said it would announce a capital expenditure plan next year for a new project for Apple, which would total US$660 million,

Horng said he is not worried about excessive supply in the metal casings industry, because metal casings can be adopted in many products and the market is still growing.

Catcher shares were unchanged at NT$338 in Taipei trading yesterday, while the TAIEX dropped 1.77 percent.

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