Faraday Reports First Quarter 2022 Results

Hsinchu, Taiwan -- April 26, 2022 -- 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 2022. First quarter consolidated revenue was NT$3,207 million, up by 21% QoQ and 109% YoY, with gross margin of 49.7%. Net income attributed to stockholders of the parent was NT$670 million, with a basic EPS of NT$2.70.

Looking back to the first quarter, the Company reported above seasonal results with record revenue and earnings mainly driven by mass production. Revenue in the first quarter grew 21% QoQ and 109% YoY to record high at NT$3,207 million. Operating income continued to rise by 24% QoQ and 430% YoY to NT$736 million while operating margin increased significantly by 14 percentage points from the same period last year to 22.9%, showing growth for the fifth consecutive quarter and reflecting the sustainability of the Company’s profitability. Net income attributed to stockholders of the parent was NT$670 million, an increase of 40% QoQ and 295% YoY, and surpassed half of earnings in 2021. EPS in the first quarter was NT$2.70, hitting a new quarterly high. In terms of product mix, IP sales grew 9% QoQ and 9% YoY to NT$292 million while NRE sales grew 12% QoQ and 20% YoY to NT$412 million. Mass production increased 25% QoQ and 171% YoY was the main revenue contributor that showed continuous growth for four consecutive quarters. First quarter results performed well at all fronts with stronger growth in earnings than in revenue. Design win of ASIC project, under the support of long-term customers, maintained at current trajectory despite cyclical fluctuation and the pandemic.

Looking into the second quarter, the overall business is expected to increase consecutively on growing demand for mass production, further amplifying the revenue growth in the first half this year. Faraday’s significant growth is resulted from the structural change, creating recurring income as the main growth driver for future growth. The Company will continue to improve operation efficiency for ASIC business while diversifying the applications to strengthen growth momentum and counter cyclical fluctuation, aiming to establish the foundation for its long-term growth.

Summary of Operating Results

(Amount: NT$ million)	1Q22	4Q21	QoQ% change
Revenues	3,207	2,645	21.3
Gross profit	1,593	1,358	17.3
Operation expenses	(857)	(765)	12.1
Operating income	736	593	24.0
Non-operating items	111	22	391.6
Net income attributed to stockholders of the parent	670	479	39.9
EPS (NTD)	2.70	1.93