21st Jan 2014 12:22
LONDON (Alliance News) - Silicon wafer services provider Pure Wafer PLC Tuesday said that trading in the first-half of the year was in line with market expectations, but due to greater pricing pressure in the global wafer reclaim market, it now expects revenues for the full-year to be around 5% below market expectations.
"Whilst the Board remains confident of meeting market profitability expectations for the full-year, revenue is likely to be slightly below expectation due to greater pricing pressure in the global wafer reclaim market," the company said in a statement.
Pure Wafer said that its competitors based in Japan are benefitting from changes in the USD/JPY exchange rate, giving them a competitive advantage relative to their home based costs.
"This has enabled them to offer competitive pricing to worldwide customers," it said.
The group said that it is confident in meeting these pricing challenges and, with improving productivity and continued tight cost controls, expects to meet current market expectations in terms of both cash generation and profits.
Pure Wafer also said that the majority of production equipment required for its increased capacity programme in Swansea in the UK, has been ordered and delivered with several key items already installed and currently in production. It said that the Swansea programme will be completed during January 2014, when all new capacity related equipment will be available for manufacturing.
It said that the installation of the additional manufacturing equipment for Prescott in the US, will commence in early 2014 and become fully operational during the first half of 2014.
Pure Wafer said that it expects to publish its interim results for the six month period ended December 31 2013, during the week commencing March 10.
Shares in Pure Wafer were down 2.6% at 94.00 pence per share, Tuesday early afternoon.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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