Faraday Reports Fourth Quarter 2020 Revenues at NT$1,430 Million, 2020 Annual Revenues NT$5,495 Million, Mass Production Up 18% YoY

Hsinchu, Taiwan – Jan, 26 2021 -- 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 fourth quarter of 2020. Fourth quarter consolidated revenues were NT$1,430 million, down by 4.2% quarter-over-quarter and up by 2.0% year-over-year, with gross margin of 46.8%. Net income attributed to stockholders of the parent was NT$23 million, with a basic EPS of NT$0.09. For the fiscal year of 2020, consolidated revenues totaled NT$5,495 million, an increase of 3.6% year-over-year. Net income attributed to stockholders of the parent was NT$268 million, with a basic EPS of NT$1.08.

In the fourth quarter, the Company’s revenues declined 4.2% quarter-over-quarter to NT$1,430 million mainly due to lower sales of mass production. Although revenues from NRE and IP still grew from previous quarter. Despite declined mass production from existing customers in the fourth quarter, the shipment of new projects continued from last quarter, resulting in mass production growth by 17.9% year-over-year in the second half of 2020. The applications of new projects including automation, AIoT and Audio/Video...etc. which mostly are niche products with long life cycle and also the ideal applications pursued by the Company. Looking back to 2020, Faraday reported annual revenues at NT$5.5 billion, a 3.6% growth from previous year. Though NRE sales recognition was deferred caused by the pandemic, the growth momentum of niche projects accelerated, resulting in annual mass production growth of 17.6% year-over-year. In terms of design win, both order amount and project number remained at high level with lifted average order amount on the back of long-term customer base, aiming to lay the foundation for the Company’s long-term business growth.

Looking into 2021, the first quarter revenue is likely to grow consecutively in the traditionally slow season. With the structural change on both product application and customer bases, Faraday holds a positive view on 2021 outlook and expects continued upward trend of ASIC and IP.

Summary of Operating Results

(Amount: NT$ million)	4Q20	3Q20	QoQ% change
Net sales	1,430	1,493	(4.2)
Gross profit	669	701	(4.6)
Operation expenses	(645)	(625)	3.1
Operating income	24	76	(67.9)
Non-operating income and expense	(3)	5	(159.6)
Net income attributed to stockholders of the parent	23	62	(62.2)
Earnings per share (NTD)	0.09	0.25