According to company sources, Taiwan-based Topoint Technology, which specializes in providing PCB drill bits and drilling services, expects its third-quarter revenues to at most experience flat sequential growth as most of its clients continue to adjust inventories in the face of weak terminal market demand and maintain a cautious outlook on sales prospects during the peak season.
Revenues for the company fell 2.8% sequentially and 4.4% yearly in the second quarter, totaling NT$892 million (US$29.73 million), although net profits increased 21.0% quarterly and 4.1% annually to NT$124 million.
Topoint stated at a recent results call conference that pandemic effects and poor macro settings were to blame for the second-quarter revenues being lower than anticipated.
According to the company, drilling services accounted for 39.7% of its second-quarter revenues, and sales of PCB drill bits and router bits contributed 60.3%.
China absorbed 60% of its shipments in terms of sales outlets, followed by Taiwan with 35% and other areas with 5%.
Traditional PCBs dominated product applications with 33% of revenues, followed by IC substrates with 28%, HDI boards with 21%, HLC (high layer count) boards with 14%, and flexible PCBs with 5%.
The company stated that it will intensify the development of drill bits for HLC boards as well as IC substrates to suit market demand as HLC tech spec will be progressively implemented in high-end PCB goods.
Although market demand is now flat, the corporation is nonetheless moving forward with capacity expansions as planned. From 25 million pieces a year ago, which was an increase from the 23 million pieces seen in the first half of 2021, its monthly capacity for drill bits and router bits will rise to 28 million units later in the second half of the year.