Handset component maker Silitech Technology reported consolidated revenues of NT$13.84 billion (US$467.7 million) for 2010, up 28% from 2009. Net income rose 16% to NT$1.47 billion or NT$8.33 a share.

Silitech's fourth-quarter profitability, however, was below market expectations. Consolidated revenues for the period came to NT$3.85 billion, and net income fell 19% sequentially to NT$347 million or NT$1.97 a share, lower than the projected NT$2-2.4 and NT$2.74 for the third quarter.

The profit decline is mainly due to a rise in cost for temporary workers to fulfill new large orders. Additionally, handset manufacturing clients requesting quote cuts and a strengthening NT$ have also contributed to the margin drop off.

Silitech's fourth-quarter gross margin slipped to 20.6% compared with 25.7% from a year earlier and 23.1% in the third quarter.