Walsin Technology, which makes multi-layer ceramic capacitors (MLCC) as well as chip resistors, slipped into the red in 2011 with sales down 37.6% from a year ago.
Walsin expects to return to profitability in 2012, as sales will start recovering in the second quarter amid better market conditions.
Brisk demand for MLCCs during the first part of 2011 had encouraged Walsin to undergo a capacity expansion, however, market conditions turned unfavorable in the latter part of the year, the company noted. About 60% of Walsin's revenues come from sales of MLCCs, and falling prices caused by an oversupply hurt company profitability significantly, it said.
Walsin remained profitable in the first half of 2011, but swung to losses in the second half. For all of the year, the company reported net losses of NT$950 million (US$32 million) on consolidated revenues of NT$25.1 billion.
Walsin has stepped up efforts to clear its inventory, said the company, adding that inventory turnover days will be reduced to less than 75 days by the end of the first quarter from about 80 days currently. And with orders picking up recently, Walsin is confident its sales performance in the second quarter will be better than that in the first quarter.
Article translated by Jessie Shen
