Question-and-Answer Session
Operator
Thank you. [Operator Instructions]. Our first question is from Shailesh Jaitley [ph]. Your line is open, you may ask your question.
Unidentified Analyst
Yes. Thanks for taking my question and congratulations for very good set of results.
Joseph Tung - Vice President and Chief Financial Officer
Thank you.
Unidentified Analyst
Yes. With the testing utilizations at 85%, which historically you have maintained as probably the max, probably you can get and packaging utilizations also running at about 90%. I was wondering that are these the peak margins or there is further room for improvement. If there is, what exactly needs to be done, what you would plan to do basically to improve the margins further?
Joseph Tung - Vice President and Chief Financial Officer
Well of course, we will continue to seek for efficiency improvement as well as cost structure improvements and as there are certainly further room for improvements as we have pointed out. Of course the economy of the scale is one of the very important factor involved, so in quarter four was the only 5%, our mid single digit increase in top line. We are still expecting improvement in... further improvement in margin. And I think the areas including that, in terms of the growth of our revenue, if we look at the assembly and test, we are seeing a slower test revenue growth in assembly, I think the main reason for that is because there is a natural time lag or the test revenue grows to catch up with assembly. And with that situation improved, the margin contribution from test operation will continue. We'll start to have some impact on margin expansion, and as I mentioned, we are also pull this thing on the improving our yield on material and also the ramp up of material operation and that will also have an impact on the margin as well.
Unidentified Analyst
Okay. And looking at your CapEx profile, definitely a 3Q CapEx was... a 3Q and 4Q both was lot higher as compared to what you spend in the first time. I was just trying to understand that minority of CapEx, does that imply that you are expecting stronger first half '08? And if so where do you see that strength coming?
Joseph Tung - Vice President and Chief Financial Officer
Okay, I think, well Q3 CapEx is basically, we are renting up for our Q4... of course at Q2 and beginning of Q3, we are already seeing very, very tight capacity and we need to add some new capacity to meet that growing demand. For Q4, I think the most part of the CapEx is really in preparation for ramping up our China operation. We are taking a new initiative in ramping up our Shanghai operation focusing on traditional leadframe based packages, which is a market that we have been... we have nothing putting a lot of focus on in the previous years.
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