IC backend service provider Siliconware Precision Industries (SPIL) expects its sales to stay flat in the third quarter of 2014 due to inventory adjustments at the non-Apple camp, according to company chairman Bough Lin.

SPIL's third-quarter revenues are likely to reach NT$21.0-21.9 billion (US$700.75-730.78 million) compared to NT$21.93 billion recorded in the previous quarter, Lin predicted.

Gross margin will slide to 23-24% in the third quarter, down from 25.8% a quarter earlier, while operating margin will also dip to 15.0-16.5% from 18% during the same period.

However, Lin stated that SPIL is set to generate revenues of NT$7 billion and even up to NT$8 billion a month in the second half of 2014 due to increased production capacity.

SPIL posted net profits of NT$3.37 billion in the second quarter, up 61.2% sequentially and 93.7% on year. Second-quarter EPS stood at NT$1.08.

For the first half of 2014, net profits amounted to NT$5.46 billion, which translated into an EPS of NT$1.75 for the six-month period.