StockNews - Statement by UTAC indicates that its sales growth may exceed expectations

Singapore's 2nd largest independent chip-tester, United Test & Assembly Center Ltd (UTAC) said it may beat its projection for first-quarter sales growth, as a result of demand for chips used in consumer electronics and cars. In January 25 this year, it states that the company expects sales in 1Q 2006 ending March to increase by as much as 8 percent, up from $100.5 million in 4Q 2005. Increased demand for chips used in popular consumer products like Apple's iPod MP3 players and Motorola's Razr mobile phones have benefited sales for chip packagers like UTAC. This news have been positive on UTAC's stock as it adds 2.5 cents after this news was announced.

On top of that most analysts covering the stock have put a 'buy' or 'overweight' rating on the stock as worldwide demand for chips is likely to increase this year on the back of increasing employment and better economic conditions.