Packaging and testing company Powertech Technology (PTI) saw its first-quarter results come in line with its guidance, and has given its positive outlook for the rest of the year.

PTI has reported net profit for the first quarter of 2016 increased 21.9% from a year earlier to NT$940 million (US$29.1 million). EPS came to NT$1.21 compared with NT$1.58 in the fourth quarter of 2015 and NT$1.01 in first-quarter 2015.

PTI generated consolidated revenues of NT$10.62 billion in the first quarter of 2016, down 12.2% on quarter but up 12.6% on year. Gross margin reached 19.4% in the first quarter compared with 21.2% in the prior quarter and 17.7% a year earlier.

PTI president Hung Jia-yu told at an April 26 investors conference that revenues were in line with its guidance given in early February. Gross margin and profit were also relatively high compared to the same quarter in previous year, Hung said.

Looking forward, PTI is optimistic about its revenue and gross margin performance in the second quarter of 2016 and expects to post sequential revenue growth through the last quarter of the year, according to Hung.

PTI has already reduced its reliance on PC DRAM products while putting increased focus on other DRAM targeted at mobile devices, gaming and server-use applications. The company also continues to expand its business in the flash field, and expects sales generated from the high-end SSD segment to register double-digit growth in the second and third quarters.

PTI also provides packaging and testing services for logic chips, such as wafer bumping and flip-chip packaging for applications processors. Sales generated from the logic IC segment are expected to rise robustly in the third quarter, Hung indicated.

In addition, Hung disclosed that new capacity for wafer bumping services will be installed at its fab in Hsinchu, northern Taiwan, in early May. PTI's total bumping capacity will climb to 64,000 wafers in September from 32,000 at the end of 2015. As for flip-chip packaging, capacity will jump 200% in the first half of 2016, Hung said.

PTI's new plant in Xian, China - a joint venture between PTI and Micron Technology - has entered volume production stage and started to generate revenues in the second quarter, Hung noted. Monthly capacity at the plant will exceed 100 million units by the end of 2016, Hung added.

PTI has set aside a capex budget of NT$12 billion for 2016.