Hsinchu, Taiwan – July. 23, 2019 -- Faraday Technology Corporation (“Faraday” or the “Company”) (TWSE: 3035), a leading fabless ASIC service and silicon IP provider, today announced its consolidated financial results for the second quarter of 2019. Second quarter consolidated revenues were NT$1,215 million, up 10.7% quarter-over-quarter and 10.1% year-over-year, with gross margin at 54.7%. Net income attributed to stockholders of the parent was NT$56 million, with a basic earnings per share of NT$0.22.
The second quarter revenues reached NT$1,215 million and increased more than 10% quarter-over-quarter and year-over-year, better than Company’s expectation. Mass production was the main driver including applications of smartmeter, PoS, high resolution projector, multifunction printer, factory automation and etc. Demands for some of these applications support localization and thus require the solutions to be customized to suit local conditions. Faraday has made much effort on these applications and formed cooperation with the leading companies in each region, which resulted in a revenue growth of mass production at 35% quarter-over-quarter to NT$780 million in the second quarter. As to NRE, Faraday continues to enhance the project quality by maximizing the design value. As a result, the profitability of NRE in the first half of this year was no less than that of the last year in spite of lower sales due to revenue deferral. Overall, despite of the higher sales proportion of mass production, the increased product quality helped Faraday’s gross margin remained at 54.7%, flat year-over-year.
Looking into the third quarter, the overall operation is likely to grow consecutively with NRE backs to the upward trend while mass production continues the growth momentum. In ASIC aspect, Faraday has had meaningful ASIC wins in mature technology in terms of quality and quantity as well as in leading edge process. Faraday will continue to extend ASIC pipeline while expanding the breadth and depth of its applications with the complete technology roadmap and leading design service experience, aiming to fully leverage the Company’s ASIC business.
Summary of Operating Results
|(Amount: NT$ million) ||2Q19 ||1Q19 ||QoQ% change |
|Net sales ||1,215 ||1,097 ||10.7 |
|Gross profit ||664 ||637 ||4.3 |
|Operation expenses ||(609) ||(551) ||10.5 |
|Operating income ||55 ||86 ||(35.4) |
|Non-operating income and expense ||14 ||29 ||(50.8) |
|Net income attributed to stockholders of the parent ||56 ||96 ||(41.2) |
|Earnings per share (NTD) ||0.22 ||0.39 || |