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GLOBAL TESTING?S FULL YEAR NET PROFIT RISES 14.8% TO US$18.6 MILLION
- 2006 full-year revenue increases 33.5% to US$71.4 million
- Gearing improved from a net ratio of 9.4% in 3Q2006 to 5.4% in 4Q2006
- A positive free cash flow of US$7.3 million for 4Q2006 and US$15.1 million for
2006
Tomolo will move past 26c as sellers thinned over a few rounds of psedo-rally. This time price should move strongly to 28-29c in next few days. just my 5c thot.
Global Testing
Wafer sorting business to recover starting 2Q07
New fabless customers and engineering services contract cushioned
impact of inventory adjustments in 4Q06. Global Testing was affected by
inventory adjustments at TSMC, Sunplus, Realtek and NXP (previously Philips Semiconductor) in 4Q06. TSMC reported a 9.1% qoq decline in revenue in 4Q06 and is likely to have pulled wafer sorting requirements to in-house facilities. Sunplus and Realtek reported 22.9% and 20.6% qoq decline in revenue respectively in 4Q06. Weakness mentioned above was partially offset by strong demand for LCD TV controllers from Mstar and Techwell. Global Testing also secured a cluster of new medium-sized fabless customers Global Unichip (system-on-chip), Airgo (wireless network), Open Silicon (ASIC), Silicon Image (HDMI interface) and Attansic (PC and networking). Overall utilisation was estimated at 70% in 4Q06, lower than previous guidance of 80%. There was contribution from engineering services contract from a US-based customer.
TSMC looks forward to recovery by Mar 07.
TSMC expects inventory correction to continue into 1Q07. It guided further sequential revenue contraction of 14.6% to 17.3% in 1Q07 but business will begin to recover by Mar 07. Loading from TSMC will increase from 2Q07 onwards as Global Testing gains allocation from a Taiwan-based competitor. Secured PC graphics business from Nvidia. Global Testing will commence wafer sorting for PC graphics chips from Nvidia in Mar 07. Nvidia is gaining market share after AMD acquired competitor ATi. The project provides higher revenue per hour of test time due to high technical complexity requiring vertical probe cards. Nvidia has also increased the requirements for pre-production testing services at Global Testing?s facility at Sunnyvale, California.
More from Marvell in 3Q07. Global Testing?s largest customer Marvell has acquired Intel?s communications and application processor business. The business unit develops processors based on XScale technology for smart phones and personal digital assistants (PDAs) such as Blackberry 8700, Palm Treo and Motorola Q. Wafer sorting services for the new range of Communications products will start contributing in 3Q07.
Recovery led by demand from PC industry. Utilisation will remain low in 1Q07 due to shutdown of nine days for Chinese New Year. Wafer sorting business will see recovery starting Mar 07 driven by pick up in demand from the PC industry. From a customer perspective, the recovery will be led by TSMC (gaining allocation), Marvell (HDD controllers) and Nvidia (PC graphics).
Global Testing will ride the recovery in the semiconductor starting 2Q07 after excess inventory are digested in 1Q07.
Reiterate BUY. Valuation remains a key attraction with FY07 PE at 6.2x and P/B at 0.9x. Our Target price of S$0.44 is based on FY07 EV/EBITDA of 5x.
Quoting from 7711 of CNA markettalk forum
Vested
Wafer sorting business to recover starting 2Q07
New fabless customers and engineering services contract cushioned
impact of inventory adjustments in 4Q06. Global Testing was affected by
inventory adjustments at TSMC, Sunplus, Realtek and NXP (previously Philips Semiconductor) in 4Q06. TSMC reported a 9.1% qoq decline in revenue in 4Q06 and is likely to have pulled wafer sorting requirements to in-house facilities. Sunplus and Realtek reported 22.9% and 20.6% qoq decline in revenue respectively in 4Q06. Weakness mentioned above was partially offset by strong demand for LCD TV controllers from Mstar and Techwell. Global Testing also secured a cluster of new medium-sized fabless customers Global Unichip (system-on-chip), Airgo (wireless network), Open Silicon (ASIC), Silicon Image (HDMI interface) and Attansic (PC and networking). Overall utilisation was estimated at 70% in 4Q06, lower than previous guidance of 80%. There was contribution from engineering services contract from a US-based customer.
TSMC looks forward to recovery by Mar 07.
TSMC expects inventory correction to continue into 1Q07. It guided further sequential revenue contraction of 14.6% to 17.3% in 1Q07 but business will begin to recover by Mar 07. Loading from TSMC will increase from 2Q07 onwards as Global Testing gains allocation from a Taiwan-based competitor. Secured PC graphics business from Nvidia. Global Testing will commence wafer sorting for PC graphics chips from Nvidia in Mar 07. Nvidia is gaining market share after AMD acquired competitor ATi. The project provides higher revenue per hour of test time due to high technical complexity requiring vertical probe cards. Nvidia has also increased the requirements for pre-production testing services at Global Testing?s facility at Sunnyvale, California.
More from Marvell in 3Q07. Global Testing?s largest customer Marvell has acquired Intel?s communications and application processor business. The business unit develops processors based on XScale technology for smart phones and personal digital assistants (PDAs) such as Blackberry 8700, Palm Treo and Motorola Q. Wafer sorting services for the new range of Communications products will start contributing in 3Q07.
Recovery led by demand from PC industry. Utilisation will remain low in 1Q07 due to shutdown of nine days for Chinese New Year. Wafer sorting business will see recovery starting Mar 07 driven by pick up in demand from the PC industry. From a customer perspective, the recovery will be led by TSMC (gaining allocation), Marvell (HDD controllers) and Nvidia (PC graphics).
Global Testing will ride the recovery in the semiconductor starting 2Q07 after excess inventory are digested in 1Q07.
Reiterate BUY. Valuation remains a key attraction with FY07 PE at 6.2x and P/B at 0.9x. Our Target price of S$0.44 is based on FY07 EV/EBITDA of 5x.
Quoting from 7711 of CNA markettalk forum
Vested
Those who missed out on UTAC can consider this gem! Target 38 cents.
Told you guys that day got one big brother bought 5,000,000 shares.
Can Centillion which is at same price level as Global Voice, cheong together ?
Hope all the "Global" rally together ..... Global Test, Global Voice .....
I see your point, Profit.
I bought 30 lots yesterday at 0.235 which was the support price since 13/12/06. Stockchastic %D blue is going to cross up above 20%, and RS1 is at oversold. Volume is rising, MACD-H(12,26) has turned green and hope its MACD will cross up the red signal line soon..... Hope it can go up to 0.26 as i see as 1st resistant line.
And who bought 5,000,000 earlier on ?
Another round of rally for STATS ?
Bottomed
STATS recovering .....
Keep close watch on GlobalTest .....
During the last results ann. the co. said it will not do so well in the last quater. That is why the stock is not moving.
I surely hope so... lost faith on this one already. It has taken thiiiiiiis long and still hovers around 24c. In the past few rounds, whenever CSM and STATS moved, I was hopeful it will move too. The move never materialised leh...
Wow ! STATS up 9 cents already.
GLOBAL TEST .........
Looks like STATS going to super cheong .....
Global Test accumulation at 23.5 completed yet ?
Today CSM & STATS doing pretty well.
Mmmm ..... Global Testing will not lack behind too far .....
Will there be a sudden breakout tomorrow ?
Over 5.8M lot selling at 0.24.Unless this lot has been taken up then the traffic will move. Good Luck to those who has vested, including myself.
One by one .....
CSM .....
STATS .....
Next Global Test ..... ?