Chunghwa Precision Test Technology Co (CHPT, 中華精測), which provides wafer and chip testing services, yesterday reported that net profit last quarter jumped 90 percent from a year earlier due to growing demand for application processors used in 5G applications.
5G technology would be a major growth driver for the company’s business and the global semiconductor industry in the next few years, CHPT said.
The company in February told investors that it had not seen customers delaying 5G deployment due to the COVID-19 outbreak.
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First-quarter net profit soared to NT$179 million (US$5.95 million) from NT$94 million in the same period last year, a company statement said.
That was also up 7.8 percent from NT$166 million in the final quarter of last year.
Earnings per share jumped to NT$5.46 from NT$2.87 a year earlier and NT$5.06 in the previous quarter.
Gross margin improved to 52.6 percent last quarter from 50.6 percent a year earlier, but was down from 53.7 percent in the previous quarter.
Revenue surged 48.51 percent year-on-year to NT$900 million from NT$606 million.
By segment, application processors remained its biggest revenue source, contributing 57.3 percent to last quarter, up from 53.2 percent a year earlier.
The company made progress in expanding its new vertical probe card (VPC) service last quarter, with a revenue share of 26 percent, up from 4 percent a year earlier.
CHPT expects VPC to be a major growth driver this year after landing orders last year from a first-tier client to test application processors for mobile phones.
The COVID-19 pandemic has not affected the company’s operations and financial performance, it said, adding that all of its employees at home and overseas are healthy.
No infections have been reported, it said.
CHPT said it is building up inventories of key components and materials to avoid potential supply disruptions arising from broader containment measures and transportation restrictions.
The company is to give its business outlook at an investors’ conference today.
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