Packaging and testing company Powertech Technology (PTI) expects to deliver steady growth in the fourth quarter of 2015, and is optimistic about its business outlook for first-quarter 2016, according to company president Hung Jia-yu.

PTI saw its revenues increase 2.8% from a year earlier to NT$10.76 billion (US$331.5 million) in the third quarter of 2015 hitting the second-highest quarterly level in the company's history. Gross margin also improved to 19.2% from 18% in third-quarter 2014, while operating margin climbed to 15.1% from 13.2% a year ago.

PTI generated net profits of about NT$1.1 billion in the third quarter of 2015, up 14.3% on year and hitting the highest in 13 quarters. EPS came to NT$1.42 compared with NT$1.25 during the same period in 2014.

PTI's revenues and gross margin for third-quarter 2015 were also the highest levels in 13 quarters, Hung indicated. The company expects to post another sequential growth in revenues and profits in the fourth quarter, Hung said.

Despite seasonality, first-quarter 2016 could be a particularly strong first quarter for the company, Hung noted.

Sales generated from the memory IC sector accounted for 73% of PTI's total revenues in the third quarter of 2015. The company also provides packaging and testing services for logic chips, such as wafer bumping and flip-chip (FC) packaging, which made up the remaining 27%.

PTI expects demand for mobile DRAM and graphics memory chips to grow steadily in the fourth quarter of 2015, while demand for standard DRAM chips will start to rise. Meanwhile, demand for consumer electronics and specialty DRAM products will stay flat on quarter. As for NAND flash, demand for high-end MCP/MMC processes for use in mobile devices will be strong in the fourth quarter, the company said.

As for PTI's logic IC business, orders for high-end packaging will continue to rise in the fourth quarter, the company indicated. PTI also expressed optimism about demand for bumping, FC and wafer-level packaging in the fourth quarter.