Pure-play gallium arsenide (GaAs) foundry Win Semiconductors has expressed caution about its performance in the third quarter, as some device industries are undertaking inventory correction at a slower pace and part of its clients are engaged in transition from old to new products.
Win Semi expects its third-quarter revenues to drop at high single digits sequentially. Nevertheless, gross margin for the quarter will be similar to the level in the first half of 2015 thanks to a diversified product portfolio, the company said.
Win Semi reported consolidated revenues for the second quarter of 2015 increased 10% on quarter and 26% on year to about NT$3.1 billion (US$97.9 million). Gross margin grew 0.9pp sequentially to a record 38.8% in the second quarter, while operating margin rose 1.5pp on quarter to 29.1%.
Win Semi generated net profits of NT$537 million in the second quarter of 2015, up 22% from a year earlier but down 13% sequentially. EPS for the quarter came to NT$0.72.
For the first half of 2015, Win Semi announced EPS of NT$1.55 on revenues of NT$5.91 billion, representing on-year growth of 43% in revenues and 76% in EPS.
Win Semi provides foundry services for GaAs components used mainly in smartphones. Leading GaAs PA suppliers Avago Technologies and Skyworks Solutions, and China-based RDA Microelectronics are reportedly among Win Semi's major clients.
Article translated by Jessie Shen
