FocalTech Systems Reports Consolidated Financial Results for Third Quarter 2023
Date: 2023/11/10
FocalTech Systems Co., Ltd. (TWSE: 3545) today (10) held its investor conference to report its consolidated financial results for Third quarter 2023.
As end market demand recovers, shipments and revenue in the third quarter increased significantly compared with the second quarter. Revenue in the third quarter was NT$3.598 billion, which was better than previously expected. Comparing with the previous quarter (QoQ) and with the same period last year (YoY), the growth rates were 15.6% and 51.8% respectively.
The gross profit amount in the third quarter increased by 11% from the previous quarter to NT$706 million. However, due to the continued competitive pressure on product selling price, the gross profit margin for the quarter came to 19.6%, down 0.9% from the previous quarter.
In the third quarter, due to increased R&D activities, operating expenses increased moderately compared with the second quarter. The operating net profit in the third quarter was NT$13 million. Benefiting from the increase in non-operating income this quarter, the net profit after tax was NT$124 million. The earnings per share were NT$0.61, an increase of 21.1% from the previous quarter and an increase of 104.5% from the same period last year.
Affected by the replenishment of inventory by customers in the mobile phone, coupled with the increase in the market share of AMOLED panel manufacturers from mainland China, both IDC (TDDI) and AMOLED Touch IC shipments are expected to rise in the fourth quarter. Therefore, the revenue will likely continue to rise as well.
The company's tablet product line also has positive results. As the market recovers, end customers are replenishing inventory, and the demand for tablet products has increased significantly compared with the past few quarters. In addition to the educational applications, the business for commercial applications in China mainland and Korea is expected to start contributing in fourth quarter.
The IDC product for automotive applications was pioneered by FocalTech and has been adopted by many car manufacturers. Since the production began about 3 years ago, the shipment has been steadily increasing and surpassed 15 million units. Now we are introducing our 2nd generation products, which have greatly enhanced the performance. In addition to continue serving the existing customers, new products will be actively introduced for higher-grade car models and more international customers, which will be the new momentum for the next phase of growth.
In terms of gross profit margin, although the pressure from continuing price reduction on consumer IDC (TDDI) products still exists, but we are starting to have new products with higher specifications or lower production cost rolling out. In addition, the increase in TP product shipments for the OLED cellphones will also contribute positive impact on the gross margins.
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
