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PTI looks to slight revenue growth in 4Q18
Source: DIGITIMES   Editor: Helan   Update Time :2018/10/24 16:31:27

Memory and logic IC backend house Powertech Technology (PTI) expects to post a low single-digit sequential decrease in fourth-quarter revenues, due mainly to a slowdown in memory chip demand.

PTI saw its revenues climb to a record high of NT$18.28 billion (US$590 million) in the third quarter of 2018, when sales generated from orders for NAND flash chips increased 17.6% on quarter to account for 45% of the total revenues. Meanwhile, sales generated from the DRAM sector slipped 3.8% sequentially to account for 29% of PTI's overall third-quarter revenues, while those from the logic IC segment grew by 1% on quarter to account for 26% of the revenues.

The DRAM market has reached a balance between supply and demand, which will lead to relatively stable prices, said PTI president JY Hung at an October 23 investors meeting.

DRAM demand for servers, data centers and mobile devices enjoyed three consecutive quarters of growth, but will likely slow down in the fourth quarter due to rising inventory levels in the supply chain, Hung noted. Meanwhile, demand for niche-market, consumer electronics and graphics applications will register a seasonal slowdown in the fourth quarter, Hung said.

As for NAND flash, inventory correction will also affect negatively the overall market demand in the fourth quarter, Hung continued. Nevertheless, PTI remains positive about NAND flash demand for mobile devices, data center SSDs and cloud computing applications, Hung indicated.

PTI's logic IC business will perform relatively stable in the fourth quarter, said Hung, adding that demand for logic chips is expected to pick up in the first quarter of 2019.

PTI posted net profits grew 13.4% sequentially and 17.4% from a year earlier to NT$1.9 billion in the third quarter of 2018, with EPS coming to NT$2.45.

PTI's revenues for the third quarter of 2018 represented increases of 11.9% on year and 6.2% on quarter, while gross margin climbed to 21.4% compared with 21.2% in the prior quarter and 21.1% a year ago. The company generated operating profits of NT$2.81 billion in the third quarter with operating margin rising 0.2pp sequentially and 0.6pp on year to 15.4%.

PTI reported net profits for the first three quarters of 2018 increased 16.1% from a year earlier to NT$4.87 billion, while revenues grew 19.8% on year to NT$51.4 billion. EPS for the nine-month period came to NT$6.27 compared with NT$5.39 during the same period in 2017.

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