UVAT Technology, which provides sputtering equipment and functional film coating services for notebooks and handsets, has seen its coating capacity fully booked for notebooks throughout the fourth quarter of the year while also enjoying a slow pick-up in coating demand from the handset segment, according to company sources.
The company said its notebook anti-electromagnetic interference (EMI) coating lines have been running at full capacity since the second quarter of the year, sending the quarter's revenues rising 13% sequentially to NT$129 million (US$4.38 million). It returned to profitability with net earnings of NT$8.4 million for the quarter.
The company expects OEM coating services to contribute 60% of its 2020 revenues, sharply up from the past 20-30%, with the growth also driven by strong demand for coating services from makers of high-end IC substrates, apart from robust notebook EMI coating business.
Nevertheless, the company's revenues for the first seven months of the year plunged 43% on year to NT$260 million, due mainly to lackluster shipments of its sputtering equipment, which used to account for 70-80% of annual revenues, amid impacts of the coronavirus pandemic.
The company expects its equipment shipments to gradually ramp up in the second half of the year and hopes its 2020 revenue on-year fall can narrow to under 30%.
Article translated by Willis Ke
