Walton Advanced Engineering expects sales to register sequential growth starting the second quarter after hitting bottom in the first. The memory-IC backend service provider has also raised its revenue guidance for the first quarter.
Revenues for the first quarter are set to come in better than expected as upstream DRAM firms have restored some capacity, Walton president Yu Hong-chi said during a February 16 investors meeting. And with demand anticipated to rise driven by ultrabook and mobile computing devices, Walton is positive about its business outlook for the rest of 2012, Yu said.
Walton now expects its first-quarter revenues to see flat sequential growth, according to Yu. The firm estimated previously a 3% decrease on quarter.
Walton is utilizing about 70% of its capacity in the first quarter, and will likely ramp up its utilization rate to 100% sometime during the second half, said Yu.
Yu also stated that Walton will halve its capex budget this year to NT$1 billion (US$33.8 million), from NT$2.2 billion in 2011. Walton had carried out most of the needed expansion and technology effort over the past two years, Yu added.
In addition, Yu said that Walton will continue to focus on orders for mobile DRAM and niche-market memory parts in 2012. Non-PC memory products now account for 55% of company revenues, up from 45% in 2011, according to Yu.
Walton aims to lower the proportion of standard DRAM products in company revenues to 30-40%, Yu noted.