SPEL Semiconductor Limited, India’s first & only semiconductor IC Assembly & Test Company, was able to maintain its revenues stream in spite of the present global economic scenario. Announcing its unaudited results for Q1 FY 2009-10, SPEL reported sales of Rs.19.86 Crores (Rs.21.83 crores for corresponding previous year’s quarter) with a PAT of Rs.76.78 lakhs. The chip market held up relatively well during the 1st half of the CY.

The performance during Q1 2009-10 was largely affected by reduced sales during the quarter coupled with the global recession & pricing pressures, thereby lowering the PAT. To combat this Management had introduced various cost saving measures. By these measures SPEL stood up to the testing times and posted a positive PAT of 76.78 lakhs for the first quarter, in spite of all the recessionary pressures.

The global slowdown caused by macroeconomic issues impacted consumer spending on all electronic devices, in which ICs play an integral role. As a result the Semiconductor Assembly and Test Service (SATS) industry saw a decline between 30% - 40% during the 1st half of CY 2009, whereas SPEL’s revenue decline was 20%.

However, the industry is showing signs of gradually recuperating, giving hope of recovery in the remaining quarters of current FY 2009-10. To fully utilize the green offshoots, SPEL has made plans for capacity addition during this FY that will reap the benefits from the next FY onwards. The Management is also exploring the European & APAC markets to further enhance the Customer base. The outlook is better than Gartner’s Q1 projections, when it forecast semiconductor revenue to decline by 24.1% in 2009. PC shipments came in better than expected, which led to an improved outlook.

Being committed to sustained long term growth, SPEL has been working on various long term measures such as building its cash reserves, identifying & training future leaders and market intelligence to derisk its market & application base. SPEL is committed to firmly establishing itself as the Natural Destination for global Customers seeking cost effective Assembly & Test services. SPEL’s ICs are used globally in applications spanning Consumer Electronics (Cell Phones, PDAs, Digital Cameras), Computing (Desktop & Notebook Computers), Communications (routers, switches & hubs) and Automobiles.