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Catcher cuts capex for 2016 in response to client orders

52RD.com 2016年1月7日 Digitimes            介入:5人 我来讲两句
  

 

Catcher Technology is planning to cut its capex for 2016, and the amount will be much lower than those budgeted in the past two years in response to its clients’ upcoming orders, according to company chairman Hong Shui-shu.

Hong, who had given an optimistic forecast in November 2015, said that clients have significantly changed their forecasts for the year in the past couple of weeks.

Catcher is a major chassis supplier for Apple’s iPhones, and some market watchers believe the company’s 2016 capex plan reflects Apple’s unsatisfactory iPhone 6s sales.

Hong expects the company’s performances in the first and second quarters of 2016 to stay flat from the same quarters a year ago and the company is unlikely to see on-year growth until the second half of the year.

Catcher’s capex was NT$20.2 billion (US$609.79 million) in 2014 and NT$16.7 billion for the first three quarters of 2015, but the amount for 2016 will be much lower.

Hong said that the company’s existing plant expansion projects in China will continue and its facilities should be sufficient to handle any growing demand in the next 1-2 years. But the company will not make significant equipment purchases in the first half of 2016 and will decide the volume for the second half based on its orders.

Despite the capex cut, Hong is still optimistic about the company’s performance and expects the company to still be able to make profits in the next couple of years.

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