IC testing specialist King Yuan Electronics (KYEC) has announced that revenues for the third quarter of 2012 grew 13.6% sequentially, higher than its internal estimate of 5-10% growth. Gross margin for the quarter climbed 3.46pp on quarter to 31.33%, thanks to higher capacity utilization rates.

KYEC generated net profits of NT$595 million in the third quarter, up 48% sequentially and exceeding the combined NT$539 million reached during the first two quarters of 2012. Net profits for the first three quarters of the year totaled NT$1.14 billion, a 192% jump compared to the same period of 2011.

KYEC credited the better-than-expected sales result to strong demand for chips used in smartphones and tablets. The firm expects to post a single-digit sequential decrease in the fourth quarter, compared to the 10-15% declines usually seen for the same quarter in previous years.

Continued strong demand for mobile devices will lead to the particularly strong fourth quarter, while demand coming from the consumer electronics and PC sectors appears to be week, KYEC indicated. Meanwhile, sales of its memory testing business are expected to perform relatively stable in the fourth quarter, KYEC added.

In addition, KYEC reiterated its planned capex budget for 2012 remain unchanged. The firm previously revised upward its capex target for 2012 to NT$3.8 billion from the NT$3.5 billion estimated previously, as it plans to add additional 12-inch wafer probing machines.

KYEC reportedly has entered the supply chain of Apple by providing testing services to a US-based sensor component vendor, according to industry sources.