Sales at King Yuan Electronics (KYEC) will be mostly affected by inventory corrections in the supply chain in the first quarter of 2012, according to the IC testing specialist. However, with customers scheduled to complete their inventory corrections by the middle of the second quarter, KYEC expects its sales to gradually recover.
KYEC reported revenues of NT$1.79 billion (US$60.6 million) for the first two months of 2012, down 10.3% from a year ago. The firm said previously that first-quarter sales would see a sequential decrease, without providing numbers.
KYEC's revenues for the fourth quarter of 2011 slid 3.9% on quarter to NT$2.83 billion. Revenues for the entire year totaled NT$11.53 billion, slipping 19% from 2010.
KYEC revealed that its capacity utilization now averages 60-70%, up slightly from about 50% in the fourth quarter. The firm believes the worst is over and customer orders have become stable.
KYEC is cautiously optimistic about its business outlook, the company said, adding that managing its costs will be the principle goal at present.
KYEC set a capex target of NT$3 billion for 2011, compared to the NT$3.99 billion allocated last year. The spending will be mainly for new testing equipment for sensor components, the company said.
Article translated by Jessie Shen
