Hsinchu, Taiwan – Feb. 22, 2017 -- Faraday Technology Corporation (“Faraday” or the “Company”) (TWSE: 3035), a leading fabless ASIC service and silicon IP provider, today announced its consolidated operating results for the fourth quarter of 2016. Fourth quarter consolidated revenue was NT$1,525 million, slightly down by 0.9% quarter-over-quarter. Net income attributable to parent was NT$31 million, with a basic earnings per share of NT$0.12. Consolidated revenues for 2016 was NT$6,422 million, a 2.4% decline from 2015. Net income attributable to parent was NT$281 million, with a basic earnings per share of NT$1.14.
While fourth quarter was traditionally a slow quarter, both Faraday’s revenues and gross margin performed better than expectation. Thanks to recovered demands for multimedia products and shipment growth for optical network products, ASIC revenues increased by 4% quarter-over-quarter. The revenues of IP, the high-margin product, remained outstanding and reported over NT$200 million with a 12% growth year-over-year. Gross margin in the fourth quarter maintained at the same level as prior quarter at 44%. Looking back to 2016, the Company not only successfully drove IP revenue to reach NT$830 million, a record high in nine years, but also continued to strengthen competitiveness by proactively developing segments with high growth potential and high entry barrier, so as to enhance product mix and increase the contributions of high value added products.
Looking into 2017, as the IoT era emerges, niche product is a mega trend. Faraday’s core businesses are ASIC service and IP. Our objective is to provide product differentiations and added values to customers. Going forward, riding on the market trend, Faraday will continue to focus on core competencies hoping to maximize asset values and enhance operating performance.
Summary of Operating Results
|(Amount: NT$ million) ||4Q16 ||3Q16 ||QoQ% change |
|Revenue ||1,525 ||1,539 ||(0.9) |
|Gross Profit ||673 ||679 ||(0.9) |
|Operation Expenses ||(659) ||(591) ||11.5 |
|Operating Income(Loss) ||14 ||88 ||(84.0) |
|Non-op. Income and Loss ||10 ||(19) ||(155.5) |
|Net Income |
(attributable to parent)
|31 ||50 ||(37.0) |
|EPS (NT$ per share) ||0.12 ||0.21 || |
 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 Dec 31, 2016, the three-month period ended Sep 30, 2016, and the equivalent three-month period that ended Dec 31, 2015. For all 4Q16 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$31.6744 to one U.S. dollar.
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