Passive component maker Walsin Technology Corporation (WTC) expects revenues to decrease 6-8% sequentially in the final three months of 2010 before gaining sales momentum again in the first quarter of 2010, according to company president TL Tsai.

In the third quarter, revenues were down 0.6% sequentially as demand from the notebook and LCD TV segments failed to help drive sales during the traditional peak season, Tsai asserted. Overall, demand from the notebook sector in the fourth quarter will be stronger than that in the third, Tsai said.

Despite declined sales, WTC saw its gross margin climb to 21% in the third quarter, thanks to growing sales of passive components to the telematics market in Europe, said the company, noting that sales to the telematics segment currently contribute 7% to its total revenues.

Walsin's book-to-bill ratio for MLCC products currently stands at 1:1.3 and for chip resistors it is 1:1.5, the company revealed. Giving the clear order visibility, Tsai expects demand for passive components will remain relatively strong in the first quarter of 2011, offsetting adverse impacts during the off-peak season, Tsai commented.

WTC president TL Tsai
Photo: Olivia Hu, Digitimes, October 2010