Polytronics Technology Gains From PPTC Device

Taipei, Sept. 17, 2009 (CENS)--Polytronics Technology Corp. is projected to earn NT$2.7 per share in after-tax net income this year and over NT$3.5 per share next year mostly thanks to its success in wining orders from manufacturers of Apple iPod and iPhone batteries for its polymeric positive temperature coefficient (PPTC) devices.

The company is said that it is one of the world's top two suppliers of PPTC device, which is a passive electronic component used to protect against over-current faults in electronic circuits.

The company's chief executive officer, F.H. Zhu, pointed out that the company's shipments of ALD type of PPTC device have increased at double to triple rate to 30 million units a month relative to last year, generating 25% of the company's monthly revenue, up from last year's 10%. It plans to jack up the percentage to 30% by the end of this year.

Its SMD-SLR type of the device has gone into batteries for iPhone 3GS, iPod touch and iPod nano. The shipment has peaked this quarter.

The company's shipments of ALD, SMR, SLR PPTC devices to handset-battery manufacturers have increased month after month, sending up its market share to 15% from last year's 6% and likely pushing gross margin up to 45% throughout current quarter.

Zhu estimated PPTC market to grow stronger next year than this year in anticipation of demands driven by Win 7, USB3.0 and direct-current motors used in cars.

Thermal-dissipation substrate used in LEDs will join PPTC to become the company's another revenue growth driver. The product now accounts for only 2-3% of the company's revenue. Zhu expected revenue from the products would grow sharply in 2011.