RFM Group’s Psi Tech boosts income by 148%

Psi Technologies Holdings, Inc., the semiconductor firm of RFM Corp. listed on the US Nasdaq, reported a remarkable 147.7-percent growth in net income for 2000, reaching $8.1 million from $3.3 million in 1999.

Net sales posted a 46.6-percent gain to $73.8 million from $50.3 million as the company increased production capacity due to higher demand for its assembly and test services.

With significant growth in income, Net margin for 2000 improved from 6.5 percent in 1999 to 11 percent last year, banking on robust sales growth and net financing income due to the surplus cash position following the company’s initial public offering in March.

RFM president and CEO Jose Concepcion III commended the Psi management as he noted that the 46.6-percent growth in Psi’s revenues was higher than that of the entire semiconductor market, whose worldwide sales of power semiconductors increased only by 37 percent from January to November 2000, according to the Semiconductor Industry Association.

Concepcion further expressed optimism on Psi’s continued growth as a result of an increased outsourcing of assembly and test requirements to independent service providers like Psi.

Psi is a leading independent provider of assembly and test services to the power semiconductor industry.

Psi’s top customers that posted biggest percentage increases in sales are Infineon Technologies, ST Microelectronics, International Rectifier, Fairchild Semiconductor and ON Semiconductor. Total sales volume in number of pieces shipped reached 858.2 million units last year, which is 54.8 percent higher than the 554.6 million units in 1999.

Meanwhile, Psi president and CEO Arthur Young said the company is pleased that the net sales for the fourth quarter came in on the high end of the guidance they gave to the market last December. "Resilient demand for power semiconductors that go into a variety of end markets, and our introduction of some new packages helped us through what was considered tough time for everyone in the industry," Young stated.

Young added that for the year, power packages accounted for 84 percent of total 2000 net sales, up significantly from the 74 percent of 1999 net sales.

For the first quarter 2001, the company is more conservative in its net sales growth expectations, estimating about three-to eight-percent growth over the fourth quarter of 2000.

"All told, we are cautious about how the market will behave over the next two quarters, but we remain very positive about our long-term outlook for this business," Young said.

The PSIT share prices significantly went up in recent Nasdaq trading days, from a range of $5-$7.70 per share in the past four weeks to $10 per share as of last Wednesday.