Chipbond Technology believes its October 2010 sales may have dropped sequentially. The driver-IC packaging and testing firm also estimated total orders for November may be similar to those received in October, and expressed uncertainty about the outlook for December due to low order visibility.

Chipbond expects its fourth-quarter revenues to drop 5-10% sequentially, citing low seasonal demand.

Chipbond saw revenues hit a record of NT$3.697 billion (US$121 million) in the third quarter. Gross margin for the quarter climbed to 30.68%, mainly buoyed by rising sales of its non-driver IC segment that yields higher gross margins.

Chipbond generated net profits of NT$743 million in the third quarter, down 7.5% sequentially. The company incurred NT$90 million in losses from currency exchange rates in the third quarter, affected by the strengthening NT dollar.

Chipbond provides packaging and testing services for driver ICs used mainly in TV- and handset-use LCD panels. The company in April completed its integration with International Semiconductor Technology (IST), which provides backend services for driver ICs as well as other non-LCD driver IC products such as smart card chips.