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88-percent year-on-year growth in net income seen by VIS in '13

TAIPEI, Taiwan -- Vanguard International Semiconductor Corporation (VIS, 世界先進) yesterday announced stellar 2013 results, with net income expanding by 88 percent year-on-year while yielding earnings of NT$2.71 per share over the course of last year.

In the fourth quarter of last year, the company garnered revenues of NT$5.402 billion, down 3 percent quarter-on-quarter, generating an after-tax net income of NT$1.129 billion, down 8 percent quarter-on-quarter, yielding earnings of NT$0.7 per share. Over the period, profit margins declined to 33 percent, down by 1 percent compared to the previous quarter. Performance and the results were within expectations, with the company attributing declines during the fourth quarter to disruptions caused by year-end holidays and the strengthening local currency, said the company.

Over the course of last year, revenues reached NT$21.135 billion, up 23 percent year-on-year, on account of growing shipping volumes of more lucrative power management integrated circuit (IC) modules, with profit margins seeing an improvement from 23 percent to 32 percent. Most notably, after-tax net income for the company last year surged 88 percent year-on-year, reaching NT$4.371 billion. In addition, the lucrative power management IC niche last year contributed a 35-percent composite to the company's overall revenues in the fourth quarter of last year.

For the current quarter, the company is expecting revenues to be sustained by persistently growing demand for large form factor display panel driver ICs in the traditional low season. In addition, the company's foundry utilization is anticipated to remain at near-capacity throughout the first quarter, amid growing average selling prices, with gross margins expected to fall under the 34-percent to 36-percent band. The company plans to increase its capital expenditure this year by 46 percent to NT$1.03 billion.

Meanwhile, a foreign institutional investor stated that VIS is interested in rapidly expanding the company's production capacity by purchasing an 8-inch wafer fabrication facility from a subsidiary of Nanya (南科) at a favorable price, possibly through an exchange of ownership stakes or a merger deal.

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