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PCB drill bit maker Topoint Technology saw its net profits decline 49.5% from a year earlier to NT$31 million (US$1 million) in the first quarter of 2019, with capacity utilization rates falling below year-ago levels, Digitimes reports.
Topoint reported revenues decreased 16.1% on year to NT$655 million in the first quarter of 2019, when gross margin slid 3.7pp from a year ago to 23.4%. The company attributed its negative performance during the first quarter to seasonality coupled with unfavorable market conditions affecting negatively customer demand. Sales of its bit drilling and hole drilling services dropped 12.2% and 4.3%, respectively, on year in the first quarter, while sales of its cutting tools fell a larger 66.9%.
Topoint expects to see customer orders particularly those for its bit drilling services pick up in the second quarter, with bit drilling capacity utilization rate set to rebound above 90%.