IC distributor WPG Holdings expects fourth-quarter 2010 consolidated revenues to be between NT$71 billion (US$2.3 billion) and NT$74 billion, up 6-10% on quarter and hitting a company quarterly high. The estimated growth will buck seasonal trends, supported by contribution from its merger with Yosun Industrial.

Speaking at an investors meeting on October 28, WPG chairman Simon Huang remarked that inventory adjustments among customers are still ongoing but should come to an end in November. However, due to seasonality, demand from the PC and consumer sectors is likely to drop sequentially in the fourth quarter, Huang indicated.

WPG's inventory turnover days are maintained at 31 days, Huang said. The level once reached 29 days in early 2010.

WPG reported net profits of NT$1.26 billion on record consolidated revenues of NT$66.82 billion for the third quarter. Sales were up 7.2% on quarter while profitability declined 14.6%, according to the company.

WPG disclosed that in the third quarter, 33% of the company's sales came from computer-related products, 31% from communications, 19% from consumer electronics and 17% from others. Meanwhile, the sales breakdown by regions was China 47%, Taiwan 45% and others made up the remainder.

WPG saw its gross margin slide to 5.53% in the third quarter from 6.08% in the second, affected by a change in its product mix. Operating margin for the third quarter was 2.33%, which came in below its estimate of 2.6-2.8%.