Heat-pipe maker Auras Technology will benefit from transferred orders from US-based clients, as its Japan-based competitor FujiKura's production lines in Thailand have been seriously impacted by flooding, according to industry sources.

Auras only confirmed that its recent orders have increased. Market watchers estimated that the company's revenues in the fourth quarter will maintain at the same level as in the third.

In addition to the transferred orders, since the Lunar New Year of 2012 will take place in January, its clients should place additional orders in December 2011 to avoid a supply gap which will boost the company's fourth-quarter performance.

Auras pointed out that its notebook-related products and non-notebook-related products contribute about 65-70% and 35-30% of its total revenues, respectively. With its non-notebook product lines continuing to see growth, the company should see profitability in the future.

Auras had consolidated revenues of NT$1.15 billion (US$38.13 million) for the third quarter, a growth of 26.7% sequentially. Gross margin also rose back from 11.34% in the second quarter to 13-14% in the third.

To handle increased orders for 2012, Auras has also recently invested NT$20-30 million to expand its heat-pipe capacity. Equipment installation will finish in the first quarter of 2012 increasing Auras' monthly capacity from two million units currently to three million units, raising its in-house built heat-pipes to account for 70-80% of the company's total shipments, up from the current 40%.

Source:digitimes