Powertech Technology , Taiwan's largest memory packaging and testing service provider, has said revenues and profits for the first quarter of 2010 exceeded the company's guidance. It ran at over 90% utilization rate on strong demand from customers.
PTI reported net profits of NT$1.77 billion (US$56 million) on net sales of NT$8.65 billion for the first quarter. Profits for the quarter grew 5.5% sequentially and 114.9% on year, scoring the company's highest level since the fourth quarter of 2007.
Elpida Memory and Rexchip Electronics, which have ramped production for DDR3 chips, reportedly are among PTI's major DRAM customers. Industry sources also speculate that PTI is a major backend supplier for Winbond Electronics' GDDR memory.
PTI chairman DK Tsai estimated the company would register a single-digit sequential revenue growth in the second quarter, and maintain a flat gross margin. PTI's first-quarter gross margin was 27.5%, similar to the level in fourth-quarter 2009.
Prices for DRAM chips are unlikely to go down in the second half of 2010, said Tsai at the company's quarterly investors conference, adding that near-term pricing will most likely stay at about US$3. Supply remains short of demand, Tsai added.
As for NAND flash, PTI revealed the segment accounted for 25% of its total revenues in the first quarter compared to 22% in the fourth quarter of 2009. Utilization rate for NAND flash chips grew in the first quarter, thanks to rising orders, Tsai indicated.
Tsai also revealed PTI will start shipping products from its recently-acquired factory building located in Hsinchu, Taiwan in the third quarter. Its Suzhou plant, which was acquired from Spansion in 2009, is also expected to come online in the quarter. The China plant has obtained orders from new customers, according to Tsai.
Tsai forecast PTI's 2010 revenues will likely grow by 20% or more, thanks its increased capacity. He previously estimated a 10-20% growth.
PTI's capex for 2010 remains unchanged at NT$9 billion, according to the company.
PTI is expected to enjoy sequential revenue growth through the last quarter of 2010, buoyed by growing demand from Elpida and other major customers, according to analyst. In terms of demand, business at PTI is very brisk.