Vanguard International Semiconductor (VIS) stays cautious about its outlook for the second quarter of 2019, because the specialty IC foundry has seen its prospects regulate stock at a slower tempo than anticipated.
VIS expects to publish one other sequential drop of 1.5-7.3% in consolidated revenues for the second quarter, with gross margin starting from 34.5% to 36.5% in contrast with 36.1% within the prior quarter. Operating margin is estimated at 21-23%, down from 24% within the first quarter.
“Due to slower than expected inventory digestion, we became more conservative about customer demand for the next quarter,” mentioned DL Tseng, VP and CFO of VIS, in a press release.
VIS reported internet revenue of NT$1.39 billion (US$44.9 million) for the primary quarter of 2019, down 28% sequentially and hitting a four-quarter low. EPS for the quarter got here to NT$0.84.
VIS noticed its revenues fall 10.4% on quarter to NT$6.91 billion within the first quarter, whereas gross margin slid 1.9pp to 36.1% because of a decline in fab utilization charges.
VIS’ capex for 2019 will attain about NT$11.7 billion, consisting of US$236 million it should pay to amass Globalfoundries’ Fab 3E in Singapore.
