Packaging and testing firm Powertech Technology (PTI) expects business to pick up in the second quarter, and continue to recover for the rest of 2013. said company chairman DK Tsai at a February 5 investors meeting.

Rising end-market demand will restore growth in PTI's backend business for NAND flash and mobile DRAM products as early as the second quarter of 2013, Tsai noted. In addition, PTI's efforts to in-house develop new packaging technologies for logic ICs including copper pillar bump, redistribution line (RDL) and through-silicon-via are set to bear fruit, Tsai indicated.

Capacity for PTI's logic backend services will be more sufficient and available to meet customer demand between the second and third quarters, said Tsai, adding that the business will start making a solid contribution to company revenues.

Meanwhile, PTI will continue to reduce its exposure to the standard DRAM market, which has been negatively affected by a shrinking PC market, Tsai reiterated. The sales ratio for PTI's PC DRAM business will fall to about 35% in 2013, while both ratios for the NAND flash and logic IC segments will rise to 30-35%, Tsai said.

Tsai also commented that the PC DRAM market will improve in 2013, as major suppliers continue to control their output for price stability. The sector is expected to change to a seller's market by the end of 2013, according to Tsai.

PTI reported consolidated revenues of NT$10.3 billion (US$347.8 million) for the fourth quarter of 2012, down 3.2% on quarter but up 6% from on year. Net profits for the quarter came to NT$712 million, compared to profits of NT$773 million in the prior quarter and losses of NT$307 million a year ago.

For all of 2012, PTI announced net profits of NT$3.61 billion on consolidated revenues of NT$41.61 billion.

Market watchers expect PTI to report a 10-15% sequential decrease in consolidated revenues for the first quarter of 2013. Sales will rebound and rise 15% in the second quarter, however, according to the watchers.

In other news, PTI has set aside a capex budget of NT$7 billion for 2013, similar to the prior year's level.