PCB material supplier Fulltech running on lean inventory

Fulltech Fiber Glass, which makes fiber glass yarns and fabrics for PCB bonding sheets and laminates, has said it plans to raise its inventory level to one month of sales, from the current 10-15 days. The company believes CCL and PCB customers will gradually clear out their inventories, and therefore demand is expected to pick up in the first quarter of 2011.

Fulltech posted revenues of NT$361 million (US$12 million) in September 2010, down 17.4% on month. The company attributed the sales decline to a 5-10% drop in quotes for fiber glass yarns and fabrics. The impact of weakening notebook market demand and adjustment of inventories by panel customers also resulted in a decline in shipments during the month, the company added.

However, Fulltech expects to see a rebound in demand from customers restocking inventories and the launch of new products in the first quarter of 2011.

Despite a weak September, Fulltech's revenues for the third quarter climbed 35.8% sequentially to NT$1.21 billion. The on-quarter rise came slightly above market watcher estimates of 30-35% growth.