IC testing firm King Yuan Electronics (KYEC) expects a rebound in the second half of 2011 following a weaker-than-expected second quarter. Orders have picked up since mid-May, according to the company.
KYEC also estimated its sales would begin to recover in May from the bottom seen in April. However, overall revenues in the second quarter may only see flat to 5% growth sequentially compared to about 10% increases during the same period of previous years, the company said.
KYEC said its revenue ratio between the first and second halves of 2011 may be 40:60, as clients resume their normal pace as well as a demand pickup on seasonal factors.
Due to component shortages resulting from the Japan earthquake, customers actually took more time to place orders, KYEC explained.
KYEC posted NT$911 million (US$31.6 million) in April revenues, down 6.6% on month. Revenues for the first four months of 2011 amounted to NT$3.89 billion, down 14.6% on year.
KYEC provides testing services for logic ICs and memory chips, with the former accounting for 75% of company revenues and the latter for the remainder.
In other news, KYEC revealed that the company's in-house testers have now generated 15% of its revenues, compared to 12% in 2010. The proportion is set to top 20% at the end of 2011. With less expenditure on buying equipment, KYEC is able to lower production costs and improve its gross margin.