Packaging and testing firms Powertech Technology (PTI) and Walton Advanced Engineering have both said they continue to negotiate with Elpida Memory to work out the best solutions to problems arising from the Japan-based client's bankruptcy filing. Meanwhile, measures to mitigate the impact of Elpida's bankruptcy are unlikely to negatively affect their sales performance, PTI and Walton both indicated.

Both memory backend specialists expect stable sales in March, and to see sequential growth through the end of the second quarter.

Issues such as accounts receivable, investment losses recognized, and new contracts for their continued partnerships with Elpida are being discussed, both PTI and Walton revealed. The pair said that they have braced themselves for possible adverse effects related to Elpida's woes. Shipments to the troubled chipmaker remain normal, the backend firms claimed.

Both PTI and Walton also disclosed that their business outlook for the second quarter of 2012 stays unchanged. Despite unfavorable conditions in the DRAM market, orders for NAND flash memory are picking up and will likely contribute to company growth in the second quarter, the firms said.

PTI reportedly is Toshiba's major backend partner while Walton has grabbed new orders for NAND flash from Winbond Electronics.

In addition, PTI sees 2012 as a turning point as the company diversifies its product offerings, according to the company. PTI's efforts to become a one-stop shop for IC packaging solutions should start bearing fruit in the second quarter, the company said.

PTI previously acquired a controlling stake in Greatek Electronics, which specializes in entry-level and mid-range semiconductor packaging and testing. Investing in Greatek would assist PTI, focused more on high-end IC solutions and memory chips, to follow a strategy of product diversification.