Investors

FocalTech Systems Reports Consolidated Financial

2022/02/24

FocalTech Systems Co., Ltd. (TWSE: 3545) today (24) held its investor conference to report its consolidated financial results for fourth quarter 2021. 

 

Fourth quarter revenue was NT$5.59 billion, up by 30% year-over-year. Gross margin reached 49.6%, slightly down quarter-over-quarter but still in line with expectations, and significantly increased by 18 percentage points year-over-year. Net profit after tax was NT$1.33 billion, rose by 140% year-over-year, which was the third highest result since our establishment.

 

2021 annual consolidated revenue reached NT$21.99 billion, increased by around 60% compared to the previous year. Gross margin was 48.8%, operating income was NT$7.13 billion, grew by nearly 6 times compared to 2020. Net profit after tax was NT$6.09 billion, with basic EPS of NT$30.23, which marked the Company’s historical high.

 

In the past few months, the semiconductor shortage problem has shown some sporadic improvements. Nevertheless, as shortage remains severe at some foundry process nodes, a wide-ranged relief may still hard to reach in the foreseeable future.

 

In the fourth quarter of 2021, inventory level of high-end cellphones rose slightly, while demand for mid-to-low end products remained strong, resulted in sustaining material mismatch. Hence, inventory adjustment during Chinese New Year would be one of the factors that influence supply and demand going forward.

 

FocalTech is well prepared for future market uncertainty, as the Company has signed long term agreements with both key customers and major foundry partners. Hence, foundry capacity in 2022 will surpass 2021.

In order to alleviate the margin impact from potential future cost increase, FocalTech has set manufacturing and operating cost reduction as our key focus in 2022.

 

FocalTech has always been dedicated in market diversification and product portfolio optimization. Leveraging our advantage as the inventor and pioneer of IDC(TDDI), FocalTech has enjoyed the positive synergy and penetrated into both automotive and industrial markets, and was recognized as a leader in automotive IDC market in 2021. Going forward, persisting growth momentum in automotive is expected, as the trends of electric, autonomous and intelligent vehicles continue to drive the adoption of in-cell touch screens.

 

Regarding AMOLED, FocalTech has earned customers' trust with stable quality and technical performance. Our shipments for mobile phone touch controllers increased rapidly in recent years, and will proceed to expand our market share in 2022. For wearable applications, AMOLED driver was already in the mass production stage, followed by IDC (TDDI) now ready for its debut, standing as the most advanced and competitive application in the AMOLED market.

 

 

FocalTech's 2021 Fourth Quarter Consolidated Results

(Unit: NT$ M, Except EPS)

 

FocalTech's 2021 Fourth Quarter Consolidated Results

 

FocalTech's 2021 Consolidated Results

(Unit: NT$ M, Except EPS)

 

FocalTech's 2021 Consolidated Results

 

*Note 1: The consolidated entities include FocalTech and its controllable subsidiaries. 

*Note 2: The financial figures are audited/ reviewed by CPA.

 

 

About FocalTech

FocalTech Group is the leader in human and machine interface technologies, providing solutions for sensing and display. FocalTech has strong capabilities in α-TFT, LTPS, and OLED display driver design, capacitive 2D/ 3D touch controller/algorithm, ITO sensing pattern, capacitive/optical fingerprint/physiological measurement algorithm. FocalTech offers TFT LCD / OLED driver IC, touch controller IC, force touch controller IC, integrated driver controller (IDC/TDDI), capacitive and optical fingerprint IC. For more information, please visit http://www.focaltech-electronics.com