Taipei, March 10, 2010 (CENS)--With labor shortage in China`s coastal provinces gradually improving and demand for mobile phones staying strong, Taiwanese handset parts suppliers, including Silitech Technology Corp., Merry Electronics Co. and Ichia Technology Inc., are expected to see their sales turn around in March, according to institutional investors.

Due partly to labor shortage and partly to fewer working days during the Chinese New Year holidays, Silitech and Merry both reported about a 6% decline in their sales revenue of NT$860 million (US$26.875 million at US$1: NT$32) and NT$512 million (US$16 million), respectively, in February from January, and Ichia suffered a steeper drop of 18.3%, tallying up sales revenue of NT$438 million (US$13.5 million) in the month.

However, with labor shortages eased somewhat and consumer demand for mobile phones continuing growing, Silitech has enjoyed an influx of contract orders from its clients, especially Nokia, and raised capacity utilization rates, very likely to improve its sales revenue to a level of over NT$1 billion (US$31.35 million) in March, representing a 16% growth from February.

Coincidentally, Merry, with its shipment of cell phone headsets increasing, is expected to sharply push up its sales revenue by 36% to over NT$700 million (US$21.875 million) in March from February. Also, Ichia will rally back from sales recession in March, institutional investors stated.

Worth mentioning is that Silitech just reported its combined revenue of NT$10.82 billion (US$338.12 million) and pretax combined profits of NT$1.71 billion (US$53.43 million) for 2010. But, the firm`s EPS (earnings per share) of NT$8.93 for the year was less than institutional investors` projection of NT$9.

Sales Revenue of The 3 Handset Parts Suppliers
Company	January	February	March (Estimated)
Silitech Technology Corp.	NT$910 m.	NT$860 m.	NT$1 b.
Merry Electronics Co.	NT$545 m.	NT$512 m.	NT$700 m.
Ichia Technology Inc.	NT$536 m.	NT$438 m.	--

(by Steve Chuang)