WPG expects 2Q15 sales to rise 8-13%
Taiwan-based IC distributor WPG Holdings expects to post revenue growth of 8.3-12.9% sequentially in the second quarter of 2015, while revenues at fellow company WT Microelectronics are forecast to increase up to 3.3% on quarter.
WPG and WT Micro both saw their first-quarter revenues meet only the low end of their guidance. Looking forward, both firms believe that semiconductor inventory levels are improving and demand is picking up.
WPG has reported consolidated revenues of NT$108.01 billion (US$3.53 billion) for the first quarter of 2015, down 7.7% on quarter but up 5.5% on year. Net profits for the quarter increased 3.9% sequentially and 0.1% from a year ago to about NT$1.4 billion. The earnings translated into a net EPS of NT$0.84.
WPG disclosed that its inventory turnover days climbed to 45 days in the first quarter, compared with 39 days in the prior quarter and 36 days during the same period in 2014.
WPG forecast that consolidated revenues for the second quarter of 2015 will reach between NT$117 billion and NT$122 billion. The company will be striving to reduce its inventory turnover days to less than 40 days in the second quarter, it said.
In addition, WPG VP Scott Lin indicated that new product lines including NFC chips for mobile phones and fingerprint sensors will buoy the company’s sales performance in the second half of 2015.
WT Micro generated consolidated revenues of NT$28.54 billion in the first quarter of 2015, down 5.9% sequentially but up 24% from a year earlier. Net profits for the quarter were NT$479 million, down 1.6% on quarter but up 41.4% on year. Net EPS came to NT$1.24.
Looking into the second quarter, WT Micro remains cautious but not necessarily pessimistic, according to company chairman Wen-tsung Cheng.
WT Micro expects to post revenues of NT$28-29.5 billion in the second quarter of 2015, with gross margin improving to 5.5-5.7%. The company also disclosed that its inventory turnover days for the second quarter will be similar to the prior quarter’s level.
