Faraday Reports Second Quarter 2020 Revenues at NT$1,306 Million with an EPS of NT$0.58

Hsinchu, Taiwan – July, 24 2020 -- 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 2020. Second quarter consolidated revenues were NT$1,306 million, up by 3.2% quarter-over-quarter and up by 7.5% year-over-year, with gross margin of 46.8%. Net income attributed to stockholders of the parent was NT$143 million, with a basic EPS of NT$0.58.

In the second quarter, the Company’s operations were impacted by macro economic uncertainties and the COVID-19 pandemic, with the revenues at NT$1,306 million, an increase of 3.2% quarter-over-quarter and 7.5% year-over-year. From a product mix perspective, growth momentum of mass production remained with a 7% quarter-over-quarter growth at NT$816 million. In the first half of this year, the demands for the applications related to New China Infrastructure strategy and niche products were relatively stable, contributing to mass production increase of 17% compared with the same period last year. Demand for smartmeter was robust throughout the first half of the year while other applications also performed well such as AI facial recognition, 5G and PoS. There are more new applications that will go into production in the second half of this year. NRE revenues remained at the same level as the previous quarter due to the dynamic of design cycle and sales booking schedule of some projects caused by COVID-19 pandemic.

The Company reviewed its ASIC design wins in the past years which were mostly in the six segments including Automation, Smartmeter, Audio/Video, Datacom, Communication and AIoT. The technology processes which Faraday is capable of are able to fulfill customers’ needs. These applications featured high mass production opportunity, high customer stickiness and long product life cycle that were the essential conditions creating the recurring income. Looking forward to the third quarter, there are more new projects expected to enter into production which will drive sales growth in the third quarter. Facing the considerable uncertainties, the Company will continue to pay attention to the market changes while capturing the superior applications in order to build the long term competitiveness.

[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with Taiwan-International Financial Report Standards (TIFRSs). They represent comparisons among the three-month period ended June 30, 2020, the three-month period ended March 31, 2020, and the equivalent three-month period that ended June 30, 2019. For all 2Q20 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$29.9356 to one U.S. dollar.

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