Third Quarter 2016 Highlights:
- Revenue was NT$1,539 million (US$48.54 million)
- Gross margin was 44.1%
- Net income attributable to parent was NT$50 million (US$1.58million)
- Earnings per share of NT$0.21
Hsinchu, Taiwan – Nov. 03, 2016
Faraday Technology Corporation (“Faraday” or the “company”) (TWSE: 3035), a leading ASIC design Service and IP provider, today announced its consolidated operating results for the third quarter of 2016. Third quarter consolidated revenue was NT$1,539 million, down by 3.2% year-over-year and 15.1% quarter-over-quarter. Net income attributable to parent was NT$50 million, with a basic earnings per share of NT$0.21.
Affected by customers’ inventory correction and seasonality, the third quarter revenues of multimedia and communication segments declined quarter-over-quarter. IP sales in the third quarter, however, reached a record high at NT$220M while NRE sales exceeded the level of NT$200M. The company continued to improve the sales portfolio in the third quarter and brought the gross margin back to 44.1%. Looking forward to the fourth quarter, Faraday will continue to optimize sales mix amidst the traditional slow season.
Faraday continues to invest in research and development. The company recently introduced the Uranus™ 55nm ultra-low-power SoC development platform which fulfills the demand for next-generation IoT chip design both on ultra-low-power and high-performance levels. With the unique Turbo Mode design of Faraday’s PowerSlash™ IP, the Uranus™ enables MCU core to achieve 2x performance improvement under the given power constraint. As the IoT era emerges, Faraday develops the Uranus™ platform to satisfy customers’ needs for low power operating environment for the IoT applications, aiming to achieve the win-win business between customers and the company.
 Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with Taiwan-International Financial Report Standards (TIFRSs). They are un-audited and represent comparisons among the three-month period ended Sep 30, 2016, the three-month period ended June 30, 2016, and the equivalent three-month period that ended Sep 30, 2015. For all 3Q16 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$31.7128 to one U.S. dollar.
Summary of Operating Results
|(Amount: NT$ million) ||3Q16 ||2Q16 ||QoQ% change |
|Revenue ||1,539 ||1,814 ||(15.1) |
|Gross Profit ||679 ||751 ||(9.5) |
|Operation Expenses ||(591) ||(596) ||(0.7) |
|Operating Income ||88 ||155 ||(43.4) |
|Non-op. Income and Loss ||(19) ||(7) ||175.3 |
|Net Income |
(attributable to parent)
|50 ||125 ||(60.0) |
|EPS (NT$ per share) ||0.21 ||0.51 || |