Nova Technology Corp (朋億), a high-technology process equipment supplier that specializes in serving semiconductor companies, yesterday said that its order backlog has risen to a record NT$11.8 billion (US$384 million) as major customers stick to their facility construction plans, despite inventory-driven headwinds.
The order backlog was up 24.21 percent from NT$9.8 billion during the same period last year, the company said.
As a result, Nova expects revenue to increase this year from last year’s NT$8.59 billion, with the growth rate largely dependent on an improvement in raw material supply, it said.
Photo: Grace Hung, Taipei Times
“We hope the first quarter was the trough for this year in terms of revenue and profit,” Nova chairman David Ma (馬蔚) told an investors’ conference. “There is no reason to be pessimistic about the company’s performance, given the high level of orders.”
Revenue last month surged 55.57 percent annually to NT$770 million for its best April performance. This reflected the strong growth momentum from China, it said.
Most customers are continuing with plans to build shell factories in preparation for an upturn in market demand, it said.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電), one of Nova’s key customers, has not trimmed capital spending for this year.
About 60 percent of the order backlog comes from Chinese customers including Nexchip Semiconductor Corp (晶合半導體) and Semiconductor Manufacturing International Corp (中芯國際). Taiwan is another major market for the company.
Earnings per share dropped to NT$1.55 last quarter from NT$2.59 a year earlier.
Regarding the impact of the US’ semiconductor export restrictions on China, it could limit raw material supply, Ma told reporters on the sideline of the investors’ conference.
However, there is a positive side, as China is intensifying efforts to boost its semiconductor self-sufficiency, he said.
Nova has been operating a Chinese subsidiary for years and would benefit from Beijing’s efforts to adopt locally made equipment and facilities, he added.
The company said it is cautiously evaluating the possibility of expanding operations in Japan, the US and Europe following major clients’ global footprint.
High labor costs, talent availability and high manufacturing costs are key concerns, the company said.
Nova yesterday reported that net profit last quarter plummeted 40.06 percent to NT$105.17 million, compared with NT$175.47 million in the same period last year. Earnings per share slid to NT$1.55 last quarter, from NT$2.59 a year earlier.
Gross margin slid to 22.21 percent last quarter from 24.64 percent a year earlier, as the company received more lower-margin construction projects.
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