Chip testing firm King Yuan Electronics (KYEC), which had originally looked for a five-year syndicated loan of NT$13 billion (US$408.8 million), has managed to secure a total of NT$19.6 billion from a banking consortium. The new funds will be used to retire part of its old debts and also to strengthen its financial capability, according to company CK Lee.
Lee was quoted in previous reports saying KYEC would move to focus on improving profitability and has no plans to raise its capex for 2010. The IC testing house estimated its 2010 capex at less than NT$2 billion, compared to NT$2.3 billion allocated for 2009.
KYEC has announced revenues for the fourth quarter of 2009 grew 7.2% sequentially to NT$3.35 billion, beating market estimates of 3-5% growth. The company expects revenues to drop at a single-digit rate sequentially in the first quarter, despite seasonality.
KYEC swung to profits in the third quarter of 2009, following three consecutive quarters of losses.