iST July 2015 Revenue Report

iST(TWSE:3289) today (Aug 4, 2015) announced its net revenues on a consolidated basis, the revenues for July 2015 were approximately NT$187million. Month over month, the consolidated revenue increased 17.37%, and increased 10.60% from July 2014, which set a highest month record in the history.

iST said, effective from July, iST officially sold 51% of the shares in DEKRA iST Reliability Services Inc. (hereinafter referred to as “DEKRA iST Taiwan”) and DEKRA iST Reliability Services Limited, (hereinafter referred to as DEKRA iST Kunshan), which are both wholly-owned iST subsidiaries to DEKRA, an Europe’s leading verification and certification authority.

Even though the above change has reduced 15-20% of iST’s revenue since July (only accounted 49% of profit in quarterly report), the original business of iST is not affected by the semiconductor market. As the closing of the international smart product projects, and the high demands of Material Analysis, Reliability Assurance and Failure Analysis, iST’s original business not only did not decline 15-20%, but increased 17.37% from last month, which reached a new record in its history.

iST observed, in spite of the shipments in semiconductor industry has been revised down due to the less demands from the end customers, the slower-growing of the mobile device needs, and the re-arrangement of the inventory, however, it’s not the total collapse of the global economy. In addition, the red supply chain in China has made the market more competitive, which is also triggering the testing need of R&D in Taiwan IC design houses. The quantity of R&D project maintains in a certain level and shows no recession.

iST indicated, the global testing orders received this year are increasing, and have been continually recognized into revenue since this month, besides the R&D project demands from Taiwan manufacturers are not declined, which imply why iST stands apart in the semiconductor industry while the others are revising guidance down.

iST further inferred, looking to the second half year, the quantity of testing cases still maintains in a high level, in addition, there will be no negative net profit resulting from the lump-sum settlement of DEKRA iST personnel longevity pay. Hence, iST gives a buoyant outlook for H2.

About Integrated Service Technology

Founded in 1994, iST began its business from IC circuit debugging and modification and gradually expanded its scope of operations, including failure analysis, reliability verification, material analysis and so on. iST has offered full-scope verification and analysis services to the IC engineering industry, its customers cover the whole spectrum of the electronics industry from IC design to end products.

In response to rising Cloud Intelligence, Internet of Things (IoT) and Internet of Vehicles (IoV), iST not only focuses on its core services but is also expanding its service offerings based on international trends, such as LED and Automotive electronic verification platforms and high-speed signal transmission integrity services.

iST’s pursuit of precision, perfection and efficiency, which has been accredited by multiple international well-known and credible organizations including IEC/IECQ, TAF, TUV NORD and CNAS. With increased outsourcing by major international brands, iST also plays the role of independent quality testing laboratory for OBM outsourcing products and association and is certified by TI, Lenovo, Dell, Cisco, Delphi, Continental Automotive, ISTA, HDMI, etc.

On July 2015, iST and DEKRA built a joint venture, Dekra IST to provide services including LED, PCB, PCBA, and system reliability verification, which could help to strengthen both parties’ capabilities of providing first-class testing and certification services in fields of automotive, LED and medical electronics.

Headquartered in Hsinchu, iST has led it to expand its operations around the world. The iST Group now includes iST Kunshan, iST Shanghai, iST Beijing, iST Shenzhen, iST Wuhan and iST Chengdu in China; IC Service in Japan, and an iST laboratory in the US. These are all dedicated to providing customers with prompt, reliable and high-quality technical services in order to grow with the leaders of the world. For more information, please visit the iST website at: www.istgroup.com