PSPC Reports $50M in Revenues in 1Q 2017

Pampanga—(PHStocks)—In line with the recovery in the global semiconductor industry, Phoenix Semiconductor Philippines Corp. (PSE: PSPC) announced that gross revenues increased 22% to $50.08 million in the first three months of 2017 from the $41.05 million in the same period last year.

The increase in revenues is due to the increase in the sale of Flip Chip ball grid array DDR4 chips and new volumes from the Embedded MMC flash cards for smartphones and other mobile devices.

However, net income after tax declined to $0.84 million during the period in review from $4.24 million the previous year. The decrease in net income is attributable to the significant increase in raw materials and other manufacturing costs resulting to US47.73 million cost of goods sold from $35.82 million last year.

“The global semiconductor industry, led by DRAM and V-NAND flash memory cards, posted double-digit rebound in shipments in the two months of the year compared to 2016,” PSPC President Byeongchun Lee said. He explained that the Semiconductor Industry Association (SIA) reported that year-on-year worldwide monthly sales leaped by more than 15% on account of the recovery in the US and in China markets.

PSPC produced a total of 162 million units of memory devices in the first quarter, an increase of 6.58% from the 152 million outputs in the same period in 2016. Lee pointed out that the unexpected robust recovery created supply glitches in the raw materials (such as leads and printed circuit boards) which resulted in higher cost.

DRAM output totaled 151 million units mix of a DDR3 and DDR4 format. Comparatively, DRAM production (all in DDR3 format) amounted to 140 million units in the first quarter last year. The company started shifting its manufacturing system to the production of the DDR4 format in the second semester.

Lee reported that construction of its Phase 2 manufacturing facility is now well underway and that target completion is expected to be accomplished by end of August. The ramp-up of manufacturing equipment is programmed to be set up in time for trial productions for new clients in the latter part of the fourth quarter.

He added that the Company is optimistic that the industry expansion will continue throughout 2017 in spite of geopolitical uncertainties. The introduction of new models of smartphones and the continued growth of Internet-of-Things, computer consoles for automobiles and GPS devices are expected to further provide positive outlook in the industry.

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