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Good Prospects for Allied Circuit May Shipments Thanks to Increased Order Value in Q2

 

Date: 2017-06-07

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Dedicated to servers and industrial PCB, Allied Circuit’s (AC) Q1 gross margin went down slightly due to elevation of RM cost. However, thanks to uplifting market demand for its specialties, its revenue climbed and peaked in April, with May shipments in very positive outlook. With some adjustments of order prices as a result of raw material cost, Q2 will witness a better gross margin.

 

As a recent outlook, AC’s revenue started to pick up since last August thanks to more profound engagement in and expansion of its clientele. Increase of raw material prices has created incentives for customers to pull in the order requirements by some 6 to 8 weeks. However, the pull-in has been slightly decelerated because of improved raw material supply

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AC’s April was at its historical height, going up by 2.75% from March. The availability/uptime will be above 90% for May and the demand will be conspicuous, leading to even better sales figures than April.
 

AC also aims at multi-layers, which facilitates its gross margin. Those over 10-layer have not occupied more than 50%, while the balance is dominated by 8-layers. With such distribution, AC can stay optimistic about keeping a gross margin of more than 20% this year. (Source: Money DJ Financial site-Focus News)

 

 

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