SFA Semicon Philippines Corp. posted a net income of $8.45 million after tax in the first nine months, almost triple the $2.86 million it registered in the same period last year.
The Clark Freeport-based memory semiconductor outsourced assembly and test provider in a disclosure on Thursday said the firm was able to take advantage of the recovery in the PC and mobile memory markets as consumers needed to address business communications needs during extended lockdowns.
Gross revenues increased by 8% to $251.6 million in the first three quarters of 2020 compared to the same period last year.
“Despite the COVID-19 pandemic, the company is continuing the momentum we set last 2019 and we are responding to the uncertainties and challenges during the year,” SSP Chairman and President Joonsang Kang said.
He added overall production output rose 14% to 775 million memory units in the first three quarters. Assembled and tested component chips more than tripled to 99 million units after strong orders from the company’s main customer.
Memory modules, the company said, are used in laptops and PC desktop units, which saw strong demand this year.
Operating income almost tripled to $11.17 million.
“Increased manufacturing efficiencies and lower administrative expenses mitigated the impact of lower average selling prices of memory products during the year,” the company said.
Mr. Kang said the company is maintaining a positive outlook as countries loosen lockdown restrictions.
The company in August announced it renewed a $20-million loan agreement with its South Korean parent to support capital expenditures and refinance existing loans.
The Semiconductor and Electronics Industries in the Philippines Inc. last month announced that it revised its 2020 projection to a five percent decline, from the earlier forecast of 15% decline after industrial, consumer, mobility, and medical electronics demand spiked. The industry group expects 7% growth next year.
Shares in SFA Semicon Philippines at the stock exchange went up eight centavos or 5.19% to P1.62 each on Thursday. — Jenina P. Ibañez