Hermes Microvision Inc (HMI, 漢微科) yesterday said it expects revenues to soar as high as 80 percent sequentially this quarter, partly helped by a major client who is resuming using its inspection tools for next-generation semiconductor technology development.
Due to the slump in the semiconductor industry and growing technological barriers, customers became cautious about investing in equipment for next-generation technology, which dealt a blow to the tool-and-equipment maker’s businesses in recent quarters.
HMI’s net income last quarter plummeted 65 percent to NT$253 million (US$7.84 million), or NT$3.55 per share, from the previous quarter’s NT$726 million, or NT$10.22 a share.
On an annual basis, net income shrank 42 percent from NT$440 million, or NT$6.17 per share.
Last quarter’s results were the worst for HMI since the company made its debut on the Taipei Stock Exchange in May 2012.
“The second quarter will be a rebound quarter,” chief executive officer Jack Jau (招允佳) told an investors’ teleconference.
Revenue is expected to grow between 50 percent and 80 percent during the current quarter, Jau said.
“We will maintain margins and profitability,” Jau said.
Gross margin improved slightly to 70.5 percent last quarter from 70.1 percent the previous quarter.
“That [major] customer has come back,” Jau said.
HMI, which holds an 85 percent share in the world’s e-beam inspection market, counts the world’s two biggest semiconductor equipment spenders — Intel Corp and Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) — as its biggest customers.
HMI is seeing an uptrend of using e-beam inspection tools in advanced technologies, but there is the uncertainty about the timing of revenue booking, as customers are still cautious on capital spending amid decelerating end demand for electronic devices such as mobile phones and tablets, he said.
The second half of this year will be better than the first half, he said.
For the full year, “a double-digit percent [annual] growth [in revenue] will be achievable,” he said.
The forecast is largely in line with the forecast of JPMorgan analyst Rahul Chadha.
“We believe HMI is on track for high-teen percent in revenue growth this year, with some upside potential if Intel’s 7nm [nanometer] tool shipments recover strongly in the second half of 2016,” Chadha said in a report on April 1.
To alleviate concerns about potential effect of customers’ reusing current inspection tools for next-generation production, HMI said that the impact on revenue was not expected to be significant.
TSMC last week said that about 95 percent tools for its 10nm technology could be reused in developing 7nm technology.
“One logic fab customer tends to reuse e-beam inspection tools on 7nm [technology ramp] from 10nm… So far, I do not really see customers moving all their tools from one production line to another production line,” Jau said.
HMI is also developing new inspection tools to help manufacturers find smaller defects as chip geometry continues to shrink.
Shares of HMI surged 4.18 percent to NT$822 in Taipei trading yesterday, ending five straight losing sessions.
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