Although wafer probing service provider King Yuan Electronics Company (KYEC) is not seeing strong sales momentum thus far in the fourth quarter of 2010, the company expects revenues to bottom out in November and begin to recover in December thanks to increased procurement by clients ahead of the Lunar New Year.
KYEC indicated that there is no increase in orders from handset chip makers, and business from large-size and small-size driver IC customers is projected to decline 10% and 20% sequentially in the fourth quarter. Orders from the memory sector are also showing no signs of a rebound.
KYEC turned in NT$1.16 billion (US$38 million) in October revenues, down 2.52% sequentially for the third lowest total of 2010 thus far.
Market watchers expect KYEC's fourth-quarter revenues to fall around 10% sequentially, and gross margin to slip to 23-24%. Revenues for 2010 are projected to reach NT$14-14.5 billion, and up to NT$15 billion in 2011.