SSP Posts 41% Revenue Growth in 2Q 2020
Global outsourced semiconductor assembly and test company SFA Semicon Philippines Corporation (PSE: SSP) registered gross revenues of $172.38 million in the first six months of the year, 20% higher than the $143.77 million ending same period in 2019.
In view of its robust topline results, its net income jumped more than 20 times from $281 thousand in the first semester of 2019 to $6.81 million in the same period during the year. On a per share basis, earnings totaled $0.0031 which is significantly higher than the $0.0001 of the previous year.
“We maintained our momentum in the second quarter in spite of the uncertainties in the international economy due to the global pandemic crisis and the weak economy in the Western economies,” Joon Sang Kang, SSP Chairman and President said.
The Semiconductor Industry Association (SIA) had announced that second-quarter global semiconductor sales were roughly flat compared to the first quarter, but on whole the year-to-date industry revenues showed an improvement over that in 2019. In the first quarter this year, SSP achieved a stronger revenue growth of 31% from $59.84 million to $78.48 million.
SSP’s positive financial performance was driven by its integrated global marketing strategy under the corporation’s parent company, SFA Semicon Co. Ltd, Korea (SSK) which has strengthened its sales volumes. With SSP becoming the group’s anchor semiconductor production hub, Kang explained that this global marketing approach has enabled the Company to focus its capability, resources and efforts in manufacturing, customer service and quality assurance.
Kang disclosed that SSP produced total of 525 million units of different memory products in the first semester in 2020 or an increase of 25% from 420 million units in the same period in 2019. He took note of the continued robust growth of SSP’s gross production output from 657 million units in 2018 to 941 million units last year.
Total production of DRAM memory modules grossed 445 million units in the first semester, up 14% from the 390 million modules produced in 2019. The Company also produced a total of 74 million component memory chips and 10 million flash-based memory cards during the year in review.
The company remains cautiously optimistic about its prospects in view of the general improvement in the COVID-19 pandemic situation worldwide and the easing of socio-economic restrictions in many countries that should indicate the start of a recovery in the global economy.
