News

PSi Technologies Reports Second Quarter 2007 Financial Results

August 14, 2007 by Jeff Shepard

PSi Technologies Holdings, Inc. announced financial results for the second quarter ended June 30, 2007. The company achieved sales revenue in the second quarter of 2007 of $22.7 million, representing an increase of 9.7% from the $ 20.7 million in sales revenue from the same period last year, and a decline from the previous quarter’s sales of $ 24.7 million.

During the second quarter of 2007, sales of power semiconductors were weaker than expected due to inventory adjustments in one of the company’s key packages to a major customer in the appliance market. Additionally, the company witnessed an overall flat demand from its other customers in the consumer electronic and motherboard markets. In terms of sales, the company’s top five customers in the second quarter of 2007 (in alphabetical order) were Infineon Technologies, NXP Semiconductors (formerly Philips Semiconductor), ON Semiconductors, Power Integrations, and ST Microelectronics, which remained unchanged from the previous year.

PSi continued to be confronted with the appreciation of the Philippine currency in the second quarter of 2007, which had a negative impact on its gross profit for the period. Comparing the second quarters of 2006 and 2007, the company experienced a shift in the value of the Philippine peso against the U.S. dollar from Php 52.24 to Php 46.87 (approximately a 10% appreciation). The company claims to have offset this increase in part through continued focus on cost reduction, efficiency, and productivity improvement programs. The continued appreciation of the Philippine peso impacted profit margins, resulting in a drop in EBITDA, gross profit, and operating loss from $2.6 million, $1.3 million, and $0.8 million in the first quarter of 2007 to $1.8 million, $0.8 million, and $1.4 million in the second quarter of 2007, respectively.

Sales revenue was $ 47.4 million in the first six months of 2007, representing an increase of 10.5% over the $42.9 million in sales revenue booked in the same period in 2006. Excluding the $2.2 million sales revenue that its now-closed China operations contributed to sales in 2006, revenues from Philippine operations alone have therefore grown by 16.6% over the corresponding period in 2006.