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Shares of Catcher extend losses after downgrade of Q3 sales forecast

2012/08/01 16:16:38

Taipei, Aug. 1 (CNA) Shares of Catcher Technology Co., a Taiwan-based metal casing supplier, extended their losses on the Taiwan stock exchange Wednesday after the company lowered its sales forecast for the third quarter, dealers said.

The forecast downgrade raised concerns over Catcher's bottom line amid weakening global demand, which have sent the stock into a tailspin in the past few sessions, they said.

Shares of Catcher Technology fell 7 percent, the maximum daily decline, to close at NT$135.00, with 80.70 million shares changing hands, while the benchmark weighted index ended down 0.03 percent, at 7,267.96 points.

"The cut in its sales forecast dealt another blow to Catcher shares after the company reported worse-than-expected second quarter results over the weekend," Horizon Securities analyst Benson Huang said.

Catcher Technology said Tuesday that its sales for the third quarter are expected to stay flat from the second quarter or even suffer a slight decline, backing off a previous forecast of a double-digit increase.

The downgrade reflected a fall in casing shipments to smartphone makers, who have been hurt by sluggish global demand as the world's economic fundamentals have weakened, the company said.

In the second quarter, Catcher Technology posted earnings per share of NT$2.03, down 45 percent from the first quarter and down 41 percent from a year earlier, largely on a tax on its retained earnings and foreign exchange losses.

In the three month period, casings for notebook computer use accounted for 55-60 percent of its total sales, and housings for smartphones made up more than 30 percent.

The company said smartphone housings are expected to represent about 30 percent of sales in the third quarter.

On the positive side, Catcher Technology does expect to benefit from rising demand for notebook and tablet computers as new models are launched later in the year and said second half sales should be higher than in the first half.

In addition, Catcher Technology said the company remains upbeat about its sales for 2013 as it is expected to pick up orders from a first-tier notebook computer supplier.

(By Lo Hsiu-wen and Frances Huang)