Walton profits to surge in 4Q16


Jessie Shen, DIGITIMES, Taipei [Monday 28 November 2016]

Walton Advanced Engineering has started fulfilling orders for DRAM testing placed by Micron Technology in the fourth quarter, which will boost the backend house's operating profits, according to a recent Chinese-language Commercial Times report.

Walton is also a backend partner of DRAM firms Nanya Technology and Winbond Electronics, which have both seen their capacity utilization rates rise since the third quarter, the report quoted market watchers as saying. Walton is expected to report 10-15% revenue growth sequentially for the fourth quarter with profits set to soar substantially, the report said.

Walton has announced consolidated revenues for October 2016 grew 7.8% on month and about 15% from a year earlier to NT$830 million (US$26.1 million). Revenues totaled NT$6.97 billion for the first 10 months of the year, rising 7.1% from the same period in 2015.

Walton generated revenues of NT$2.24 billion in the third quarter of 2016, up 9.9% sequentially, while gross margin rose 4.2pp on quarter to 13.4%. The company posted operating profits of NT$186 million in the quarter, compared with profits of NT$77 million in the second quarter and only NT$5 million in the third quarter of 2015.

Walton saw its net profits increase a moderate 15.2% to NT$106 million in the third quarter of 2016, due mainly to the NT dollar's appreciation. Net EPS for the quarter came to NT$0.22.

Walton's net profits for the first three quarters of 2016 came to NT$123 million, up nearly 110% from a year earlier, with EPS reaching NT$0.26.