Semiconductor assembly and test services provider Unisem's 3rd Q revenue grew by 11.1%

Malaysia based Unisem Group, provider of semiconductor assembly and test services reported revenue of RM283.5 million (approx. US$80.2 million) for 3Q09, an increase of 11.1% from RM255.3 million (approx. US$71.4 million) compared to the prior quarter (2Q09). Profit before taxation increased 12.2% to RM25.5 million (approx. US$7.2 million) compared to RM22.8 million (approx. US$6.4 million) in 2Q09. Net profit increased 7.6% to RM25.6 million (approx. US$7.2 million) for 3Q09 compared to RM23.7 million (approx. US$6.5 million) in 2Q09. The improvement in profit before taxation was mainly due to increase in overall group sales volume as well as higher profit contribution from Unisem Chengdu.

As compared to the same quarter a year ago (3Q08) the Group revenue represents a decline of 14.4% compared to RM331.2 million (approx. US$100.7 million). Group net profit for 3Q09 was higher compared to RM24.3 million (approx. US$7.4 million) achieved in 3Q08. The decline in revenue was mainly due to reduced sales volume whereas the improvement in profit was mainly due to the higher profit contribution from Unisem Chengdu, lower operating costs and lower interest expenses.

For the nine-month of the current financial year ended 30 September 2009 (9m09), the
Group recorded revenue of RM719.5 million (approx. US$201.8 million) which represents a 25.5% decline compared to RM966.0 million (approx. US$298.0 million) for the nine-month period a year ago (9m08). The decrease in revenue was mainly due to decrease in sales volume as a consequence of the global economic slowdown. For 9m09, the Group recorded a net profit of RM25.9 million (approx. US$7.3 million) compared to net profit of RM71.5 million (approx. US$22.1 million) achieved in 9m08. The decrease in net profit was mainly due to lower business revenue achieved and foreign exchange losses.

Group earnings before interest, tax, depreciation and amortization (EBITDA) for 3Q09 was about RM71.3 million (approx. US$20.2 million), EBITDA margin was about 27%. Equipment capacity utilization averaged at about 66% for the group in 3Q09. Group capital expenditure incurred in 3Q09 was about RM43.4 million (approx. US$12.3 million), principally for purchase of equipment for packaging & final test activities and facilitisation of clean room for Unisem Chengdu and Unisem (M) Berhad.

Commenting on the outlook of the Group, Mr. John Chia Sin Tet, group managing director said, "The Directors expect the Group's revenue and earnings in the fourth quarter to improve further from the previous quarter and that the business of the Group for the remaining period to the end of the financial year would remain strong."

Unisem services include, wafer bumping, wafer probing, wafer grinding, leadframe and substrate IC packaging such as leaded, QFN, BGA and FlipChip packages, and RF and mix-signal test services.