HONG KONG -- Hong Kong's Asat Holdings Ltd. here today (Feb. 28) reported sales of $84.4 million in the fourth quarter ended Jan. 31, a 1% increase over $83.7 million in the like period a year ago.
On a sequential basis, sales for the IC-packaging and test house decreased to $84.4 million, compared with $104.1 million for the previous quarter. After-tax earnings were $10.7 million, compared with $4.4 million a year ago. The company hit its forecast by earning $0.08 per share during the period.
For the year, the company reported sales were $375.3 million, a 29% increase over the like period a year ago. It posted a net $43.5 million, compared to $37.4 million last year.
"With record annual results, but disappointing current quarter results, the company is obviously seeing the impact of a downturn in demand experienced in our end-use markets, primarily the communications sector which accounts for approximately 80% of our sales," said Jerry Lee, chief executive of Asat.
"In response to this downturn we will implement cost reduction and reduce capital expenditures," Lee said, without elaborating. "This is necessary as our utilization levels are approximately 55-to-60%, down from the 76-to-80% level experienced in the October 2000 quarter, and it seems that no firms, including the major OEM's in the communications sector, offer any visibility for an upturn," he said.