IC backend service company Powertech Technology (PTI) has reported net profits of NT$958 million (US$31.52 million) for the third quarter of 2014, up 6.6% from the previous quarter and 146.3% from a year earlier.

Third-quarter gross margin stood at 18%, up 0.1pp from a quarter earlier and 4.6pp from a year earlier, while EPS for the quarter reached NT$1.25.

For the first three quarters of 2014, net profits increased 32.8% on year to NT$2.45 billion, translating into an EPS of NT$3.21 for the period.

PTI expects its sales to decline slightly in the fourth quarter as compared to the previous quarter, affected by seasonality and inventory adjustments at clients, according to company president JY Hung.

For the fourth quarter, backend service demand for standard DRAM chips and logic ICs is expected to slip, while that for mobile RAM and flash devices will remain strong, Hung said.

PTI's capex is expected to reach NT$10 billion in 2014, but it will be more conservative on capital spending in 2015, said the company, adding it will continue to commit investments in advanced packaging technologies, including wafer-level, flip-chip and SiP packaging processes.

Looking forward, the company also expects backend service demand for mid-range to high-end logic chips, wire-bonding and flip-chip packaging to continue growing positively in 2015, said company chairman DK Tsai.

The rising popularity of SSD devices will also help ramp up PTI's shipments of flash chips in 2015, Tsai said. The company is shipping 200,000-250,000 flash chips a month currently.