King Yuan Electronics (KYEC) and Thailin Semiconductor saw their consolidated revenues and profits climb significantly on quarter in the second quarter of 2010, according to data released by the companies. Both chip testing houses are conservative about the third quarter, estimating that revenue growth will stay flat on an already high second-quarter baseline.
KYEC reported after-tax profits of NT$510 million (US$16 million) for the second quarter, compared to profits of NT$234 million for the first quarter, and losses incurred a year ago. Accumulated after-tax profits for the first two quarters of 2010 totaled NT$744 million, translating into an EPS of NT$0.67.
KYEC saw its consolidated revenues grow 14.2% sequentially and 47.7% on year to NT$4.58 billion in the second quarter, and also achieve an historic high.
KYEC expects to post flat sequential revenue growth in the third quarter, compared to a single-digit rate that was previously estimated. The company revealed that several IC design customers have slowed down their pace of orders.
KYEC estimated its current utilization rate for logic chips at 80-85%, LCD driver ICs at 60-70% and memory products products 50-60%.
Thailin posted revenues of NT$437 million for the second quarter, up 11.6% on quarter and 58.9% on year. After-tax profits for the quarter reached NT$617 million, bringing profits for the first half of the year to NT$639 million.
Thailin said its second-quarter profits mainly came from the NT$89 million sale of unused equipment and other non-core activities. In addition, Thailin's core business swung to the black in the second quarter, following six consecutive quarters of losses.
Thailin registering operating profits of NT$20.6 million in the second quarter, compared to losses of NT$20.2 million in the first quarter and NT$137.2 million in second-quarter 2009.
Thailin said revenues for the third quarter are likely to be on par with the prior quarter's level. It previously estimated a 5-10% revenue increase sequentially in the third quarter.
Thailin indicated that demand from the niche memory sector is weakening, and also expressed concerns of growing panel-use controller IC inventory.