Hsinchu, Taiwan – April, 27 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 first quarter of 2021. First quarter consolidated revenues were NT$1,535 million, up by 7.3% quarter-over-quarter and 21.3% year-over-year, with gross margin of 48.8%. Net income attributed to stockholders of the parent was NT$170 million, with a basic EPS of NT$0.68.
Looking back to the first quarter, the Company’s revenues increased significantly by 21.3% year-over-year to NT$1,535 million, reaching the highest within the same period in the past six years. NRE sales grew 35.8% quarter-over-quarter to NT$343 million including the networking and 5G related applications. IP business also performed well thanks to the Company’s continuous efforts, resulting in sales growth of around 25% quarter-over-quarter and year-over-year to NT$268 million. Although sales of mass production declined 4.1% quarter-over-quarter to NT$924 million given fewer working days, the growth trend for the whole year remained unchanged. The applications of mass production in the first quarter included automation, AIoT and Audio/Video. With the gradual ramp up of the new products, the sales contribution of new projects is expected to account for more than half of mass production sales in the first half of this year, resulting in better customer portfolio. With the strengthened customer base, mass production will be driven by more key customers and incremental growth. In terms of design win, the number of new project maintained at a high level in the first quarter. Faraday’s design win had continued improvements on technology process and design value which will be the main driver for NRE growth. With the prudent control on cost and operating expenses, the Company’s operating profit in the first quarter reached NT$139 million. Revenues and operating profit in the first quarter both hit new high at the same period in past six years.
Looking into the second quarter, the upward trend of operation is confirmed as growth momentum for NRE is expected to continue and demand for new product of mass production is to be strengthened. With two growth engines firing up, the Company holds a positive view on revenue growth for the first half of this year.
Summary of Operating Results
|(Amount: NT$ million) ||1Q21 ||4Q20 ||QoQ% change |
|Net sales ||1,535 ||1,430 ||7.3 |
|Gross profit ||749 ||669 ||11.9 |
|Operation expenses ||(610) ||(645) ||(5.4) |
|Operating income ||139 ||24 ||471.0 |
|Non-operating income and expense ||70 ||(3) ||(2555.0) |
|Net income attributed to stockholders of the parent ||170 ||23 ||621.2 |
|Earnings per share (NTD) ||0.68 ||0.09 || |
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