FocalTech Systems Co., Ltd. (TWSE: 3545) today (29) held its investor conference to report its consolidated financial results for second quarter 2022. 2022’Q2 revenue was NT$3.33 billion, down by 14.5% quarter-over-quarter and 42.4% year-over-year. 2022’Q2 gross margin was 33.9%, decreased 5.7 percentage points QoQ and 16.5 percentage points YoY. 2022’Q2 net profit after tax was NT$83 million, and EPS was NT$0.44. The decline of sales and profit in 2nd quarter was caused by the combination of weak demand and the drop in selling price. The weak end market demand is wide spread, which covers all consumer sectors from cellphones to personal computers. However, the onset of weak demand usually leads a pile up of inventory. This time, due to the interruption of supply chain and the shortage of chips in the past two years, most manufacturers have prepared extra inventories as a common practice. As a result, the inventory pile up this time has created a big problem. This inventory situation is affecting the entire cellphone and personal computer industry and may take multiple quarters to correct. We are working closely with our customers to cope with the inventory issue. The LTA we had signed with the customers appears not a short-term tool to fix the over inventory problem, but provides us a good platform to work with our customers towards a win-win situation in longer term. Amid the bad economic news all around, there is a shining spot; that is our automotive business. FocalTech’s IDC (TDDI) for automotive sector continues to grow in contrast to the declining consumer market. The shipment of our In-cell products in the first 6 months this year exceeds the shipment of whole year in 2021. Currently ranked as the world’s top supplier, we expect the sales for automotive applications will continue to increase in the 2nd half of the year.
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