Siliconware Slips – Analyst Blog

Siliconware Precision Industries Co. Ltd (SPIL) reported earnings from continuing operations of 8 cents per ADR for the second quarter of 2010, falling below the Zacks Consensus Estimate of 12 cents.

 

Revenues for the quarter were NT$ 16,386 million ($514.5 million), which represented a 4.5% increase in revenues compared with the prior quarter and 11.6% increase compared with the prior-year quarter.

 

 

For the second quarter of 2010, net revenues from IC packaging were NT$15,019 million and represented 92% of total net revenues. Net revenues from testing operations were NT$ 1,367 million and represented 8% of total revenues.

 

Revenues according to end applications were as follows: Communication (50%), Computing (18%), Consumer (18%) and Memory (14%). North America generated 57% of revenues, followed by Asia (excluding Japan) at 37%, Europe at 4% and Japan at 2%. The company added wire-bonder capacity by 306 sets in the most recent quarter, while at the same time it added three and disposed 143 testing sets. Net headcount increased by 900 during the quarter. Gross profit was NT$2,774 million for the quarter, representing a gross margin of 16.9%, a small increase from 16% in the prior quarter but was down from 20.6% in the second quarter of 2009. Gross profit declined due to higher cost of raw materials, especially gold.

 

Operating income was NT$1,868 million for the second quarter of 2010, representing an operating margin of 11.4%, which increased from 10.9% in the prior quarter and decreased from 15.5% compared to the year-ago quarter.

 

Capital expenditures for the second quarter of 2010 totaled NT$2,862 million, which included NT$2,625 million for packaging equipment and NT$ 237 million for testing equipment.

 

 

Cash balances totaled NT$21,128 million as of June 30, 2010, marginally down from NT$21,198 million as of March 31, 2010 but up from NT$20,031 million as of June 30, 2009.

 

SPIL provides comprehensive packaging, offering lead frame base and substrate base packages, with either wire bond or flip chip interconnections. These packages satisfy most applications for customers serving the PC, hand-held product, consumer product and wire communication markets.

 

Besides the conventional SOP and QFP packages, SPIL has been devoted to the development of wafer thinning, fine-pitch wire bonding, stacked-die bonding, wafer bumping and flip-chip assembly technologies in order to realize advanced packages like: QFN, PBGA, TFBGA, Stacked-die CSP, WLCSP, Memory card and FCBGA.

 

Major competitors include Advanced Semiconductor Engineering Inc. (ASX) and Amkor Technology Inc (AMKR).