SFA Semicon Philippines Corp. swung to profit in the first quarter of the year to $1.81 million, a reversal form a loss last year.
Revenues reached $78.48 million, up 31 percent from $59.84 million last year.
The company said it realized a 49 percent hike in production volumes despite the challenges posed by the new coronavirus disease 2019 (COVID-19) pandemic globally.
“The company’s strategic focus, resilience and ability to manage the business continuity risk amidst the global pandemic have impacted positively on the strong financial results in the first quarter of the year,” said Joon Sang Kang, SFA Semicon chairman.
Kang said SFA Semicon “substantially exceeded the performance of the global semiconductor industry which posted revenue growth of nearly 7 percent during the quarter,” citing statistics from the Semiconductor Industry Association.
Kang said SFA Semicon produced a total of 242 million memory products during the period in review, representing an increase of 48 percent from the 163 million units in 2019. DRAM modules bannered SFA Semicon’s robust output growth as this product category posted a 42 percent increase to 208 million units, while production of component chips rose more than doubled to 30 million units during the year.
Kang said SFA Semicon’s export of all shipments from its manufacturing facility hit $1.42 billion, up 79.74 percent from $0.79 billion in 2019. It remains one of Clark Freeport’s largest semiconductor exporters.
The company said since the imposition of the enhanced community quarantine (ECQ) in Metro Manila, Central Luzon, and other of parts of Luzon last March, it managed to resume operations in March under a skeleton staffing.
“In strict compliance to the conditions for continued operations of export companies located inside economic zones, the Company has secured lodging facilities and accommodations for its manpower. Direct and outsourced employees are currently housed in various hotels inside the Clark Freeport Zone, including medical personnel, housekeeping, canteen crew, drivers and security guards,” it said.
“Based on management’s assessment, the events surrounding the outbreak did not have a material impact on the financial position and performance of the company as at March 31, 2020. Production orders for the first quarter of the year were serviced satisfactorily. Additional costs related to logistics on importation of raw materials, provision of lodging accommodations and other necessities are to be reimbursed by its customer through its Parent Company located at South Korea, SFA Semicon Ltd., (SSK),” it added.
SFA Semicon however said that it could still not discount the “material impact” of the business disruption from COVID-19 for the rest of the year.
“Considering the evolving nature of this outbreak, the company cannot determine at this time the impact to its financial position, performance and cash flows,” it said.
