Gross Margin 52.5%, Reaches a 3 Year-High
Hsinchu, Taiwan – November 2, 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 third quarter of 2017. Third quarter consolidated revenue was NT$1,269 million, down 16.0% quarter-over-quarter while gross margin reached 52.5%, up five percentage points from the previous quarter. Net income attributable to parent was NT$124 million, with a basic earnings per share of NT$0.50.
In the third quarter, Faraday’s product mix continued to improve. The revenue for IP not only grew 7% quarter-over-quarter to NT$225 million but also reached a ten year high. As to NRE, Faraday’s NRE revenue for the applications this quarter including aircraft, 5G wireless networking, industrial, multimedia and precision agriculture rode on the trend toward higher value products from last quarter. Moreover, the contribution from niche products, IoT, cloud and industrial applications, of overall sales excludes IP increased significantly from last quarter and reached 50% of total revenue in the third quarter. All these are considered results of Faraday’s strategic transition. In addition to the continued improvement of revenue quality, the company’s gross margin also grew to 52.5% this quarter, setting a record high in the past three years.
Looking into the fourth quarter, IP and NRE, the high margin products, are expected to see further revenue growth. With the strategic adjustment gradually implemented, Faraday’s both business operation and internal management are well on track now. On the product mix front, for NRE, the company grew its new projects significantly with a focus on niche applications. With a more balanced customer base, ASIC products are now positioned with high entry barrier and long life cycle. Going forward, Faraday will continue to focus on high-value products while leveraging its strength on IP to provide total solutions to the clients.
Summary of Operating Results
Detailed Financials Section
Analysis of Revenue
ASIC Revenue Breakdown by Geometry
Total Revenue Breakdown by Billing Method
Total Revenue Breakdown by Customer Type
ASIC Revenue Breakdown by Application
Faraday Technology Corporation (TWSE: 3035) is a leading ASIC design service and IP provider, certified to ISO 9001 and ISO 26262. The broad silicon IP portfolio includes I/O, Cell Library, Memory Compiler, ARM-compliant CPUs, DDR2/3/4, low-power DDR1/2/3, MIPI, V-by-One, USB 2.0/3.1 Gen 1, 10/100/1000 Ethernet, Serial ATA, PCI Express, and programmable SerDes, etc. Headquartered in Taiwan, Faraday has service and support offices around the world, including the U.S., Japan, Europe, and China. For more information, visit www.faraday-tech.com