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Siliconware shares resilient on Q2 outlook

Siliconware shares resilient on Q2 outlook

Taipei, April 30 (CNA) Shares of Siliconware Precision Industries Co. (??) appeared resilient Thursday morning as the integrated circuit packaging and testing services provider said a day earlier that its sales for the second quarter of this year will grow at a mild pace, dealers said. The current buying also reflected optimism toward the second half of this year, as Siliconware Chairman Bough Lin (???) has said that the global semiconductor industry will benefit from solid demand for smartphones, the launch of wearable devices and the wider use of data centers, the dealers said. As of 11:11 a.m., shares of Siliconware had added 0.60 percent to NT$50.50 (US$1.66), with 6.65 million shares changing hands. The bellwether electronics sector was down 0.10 percent, while the weighted index on the Taiwan Stock Exchange was up 0.16 percent at 9,869.73 points. "It seems that investors used Siliconware's estimate for the second quarter as a cause to pick up the stock, helping it outperform the broader market," MasterLink Securities analyst Tom Tang said. In an investor conference held a day earlier, Siliconware said that the IC packaging and testing services provider is expected to post NT$21.2 billion to NT$22.4 billion in consolidated sales for the second quarter, up 1.9 percent-7.6 percent from the first quarter. "As the second quarter remains a slow season in the IC industry, the estimate comes within market expectations," Tang said. The market had previously estimated that Siliconware's consolidated sales for the second quarter would grow 2 percent-8 percent quarter-on-quarter. According to Siliconware, the third-largest IC packaging and testing services provider, its gross margin for the second quarter is expected to range between 26.5 percent and 28.5 percent, compared with 26.2 percent recorded in the first quarter. Its operating margin is expected to range between 16.5 percent and 18.5 percent, compared with 16.7 percent seen a quarter earlier. Siliconware said that sales generated from IC packaging and testing services for communications devices will continue to expand in the second quarter and revenue posted for the personal computer business is expected to grow slightly, while revenue resulting from services for memory chips could fall slightly in the second quarter. In the first quarter, Siliconware posted NT$2.62 billion in net profit, down 13.3 percent from a quarter earlier due to slow season effects, but up 24.8 percent from a year earlier. Its first-quarter earnings per share (EPS) stood at 0.83, lower than an earlier market estimate of 0.87. "Like some other exports-oriented high-tech firms in Taiwan, Siliconware's lower-than-expected EPS for the first quarter largely came from foreign exchange losses due to the Taiwan dollar's appreciation," Tang said. Due to lingering optimism toward the second half of the year, Siliconware said that the global semiconductor industry will grow at a pace of mid- to high- single digits and the company will continue to invest to expand production capacity. Siliconware said that its capital expenditure for 2015 is expected to total NT$14.5 billion, little changed from a year earlier. The company said that a new plant located in central Taiwan is scheduled to launch commercial production in the third quarter of this year. The market has forecast that Siliconware will post NT$4.38 in EPS for 2015, up from NT$3.76 recorded in 2014. (By Jalen Chung and Frances Huang)


Updated : 2021-09-25 17:48 GMT+08:00