TAIWAN - Despite forecasting a rebound in March sales, Nan Ya Printed Circuit Board (NPC) has reported low orders in the second quarter, with overall quarterly sales expected to post only mild sequential growth.

Given the continued lowered sales expectations, capital expenditures for 2008 are expected to be flat on year.

NPC attributed its weak February sales to the shorter month, which it reports affected PCB shipments, along with a 31% decline in wirebond substrates orders.

In light of the first quarter declines and the dropping prices for wirebond substrates, NPC estimated that its first-quarter gross margin will slip to below 25%, even before considering currency exchange losses.

On the positive side, demand for substrates sold to Intel have remained solid, and handsets products that are expected to launch during the second quarter should help spur sales.