Powertech Technology Inc (PTI, 力成科技) expects revenue to grow gradually over the next three quarters on rising demand for advanced handset chips, after seasonal weakness pared net profits 12.7 percent sequentially last quarter, company executives said yesterday.
The Hsinchu-based chip tester and packager also said the government’s suspension of a NT$19.4 billion (US$599.45 million) investment plan by Chinese semiconductor firm Tsinghua Unigroup Ltd (清華紫光) would not affect this year’s business outlook.
“We have arranged cash and technologies to support the company’s business plan this year. The Tsinghua Unigroup case, which is still under government review, will not affect our business, revenue, cash position and capital spending,” chairman Tsai Du-kung (蔡篤恭) told an investors’ conference yesterday.
PTI plans to boost capital spending by about 38 percent to NT$12 billion this year from last year’s NT$8.7 billion to finance capacity expansion and the development of advanced technology, such as fan-out packaging technology.
Fan-out packaging technology has drawn attention after Apple Inc said it plans to use the new technology for the next-generation chips used in its new iPhone models.
However, Tsai said PTI’s fan-out technology is not for Apple.
The spending also includes a budget for PTI’s Chinese memorychip packaging plant in Xian, the capital of Shaanxi Province, designated exclusively for Micron Technology Inc.
PTI said net profits fell to NT$1.22 billion last quarter, compared with NT$1.47 billion in the previous quarter. That represented annual growth of 18.3 percent from NT$1.03 billion.
The quarterly net profit surpassed the forecast of Yuanta Securities Investment Consulting Co (元大投顧) analyst Andrew Chen, who expected PTI to make NT$995 million.
“The first quarter is usually the toughest period,” PTI general manager Hung Chia-yu told the conference. “We are optimistic about the second quarter’s outlook. Revenue will grow on a quarterly basis and on an annual basis.”
The growth momentum is to extend into the second half of this year, helping revenue to rise quarter by quarter, Hung said.
“Demand from the smartphone segment has been rebounding,” Hung said.
That would drive up demand for mobile DRAM and flash memory chips, he said.
Flash memorychips are the biggest revenue source for PTI, contributing 39 percent, followed by DRAM with 32 percent, according to the company’s financial statement.
Revenue last quarter dropped 12.2 percent sequentially to NT$10.62 billion due to the strong New Taiwan dollar and fewer working days, from a record high of NT$12.09 billion in the fourth quarter of last year.
Utilization of its chip packaging equipment is expected to climb to more than 80 percent in the current quarter and to 90 percent next quarter, compared with 75 percent last quarter, PTI said.
Packaging service revenue made up more than 70 percent of the company’s total revenue last quarter.
PTI shares jumped 1.45 percent to NT$70.2 in Taipei trading yesterday.
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