IC substrate supplier Kinsus Interconnect Technology's net profits fell 78% on year to NT$491 million (US$16.8 million) in 2017. EPS for the year came to NT$1.10, down from NT$5.01 in 2016.
Kinsus posted consolidated revenues of NT$22.34 billion in 2017, down 3.6% on year, while gross margin slid 6.18pp from a year ago to 18.64%. The company generated operating profits of NT$399 million, with operaing margin falling 9.39pp on year to 1.79%.
A strong NT dollar had a negative impact on Kinsus' gross margin and profitability during 2017. The company was also affected adversely by a slowdown in IC substrate demand from its China- and US-based smartphone customers, according to market watchers.
Disappointing sales of new smartphones rolled out by its US client dragged down Kinsus' profitability in the fourth quarter of 2017, which hit the lowest quarterly level in the company's history, the watchers indicated. Kinsus' substrate-like PCB (SLP) production yield rate failed to pick up and remained at only above 60% in the fourth quarter, the watchers said.
Kinsus reported consolidated revenues of NT$6.29 billion for the fourth quarter of 2017, up 2.3% sequentially. Consolidated sales included revenues generated by subsidiaries Fuyang Technology and Pegavision.
Kinsus swung to operating losses of NT$69.51 million in the fourth quarter from profits of NT$282 million in the third. Net profits declined 94.3% on quarter to NT$15.67 million. EPS for the fourth quarter reached NT$0.03 compared with NT$0.62 in the prior quarter.