SINGAPORE United Test and Assembly Center (UTAC) announced its 12th consecutive quarter of revenue growth Tuesday (July 25), but said profits slipped due to relocation expenses and weakness in its memory business.
UTAC reported net profit of $15.5 million for the April to June period, more than double the figure registered a year ago but a 25 percent drop from the prior quarter.
Group President and CEO Lee Joon Chung attributed the decline to a "confluence of one-off factors," including costs associated with the opening of a second Singapore facility and lower utilization in UTAC's DRAM line.
Revenue was up 16.8 percent from the first quarter to $120.5 million, driven by strength in the communications and flash memory sectors as well as the first month of contributions from the company's new Thai subsidiary.
UTAC forecast revenue growth of 30 to 35 percent in the third quarter, and has raised its annual target from 40 to 70 percent based on an expected rebound in the DRAM segment as well as continued growth in its mixed signal communications business.
It also hiked its capital expenditures budget for the year from $200 million to $350 million.