Announces Consolidated Financial Results for Q4, 2023


FocalTech Systems Reports Consolidated Financial Results for Fouth Quarter 2023

Date: 2024/02/23 


FocalTech Systems Co., Ltd. (TWSE: 3545) today (23) held its investor conference to report its consolidated financial results for Fouth quarter 2023.


Due to smart phone market demand recovery, FocalTech has increased IDC (TDDI) and AMOLED Touch sales noticeably in Q4 compared to Q3. However, due to the continuous selling price reduction, the fourth quarter revenue was almost flat compared with the third quarter. Revenue in the fourth quarter was NT$3,632 million, a growth of 0.9% and 8.1% respectively compared with the previous quarter (QoQ) and the same period in last year (YoY). 


Due to volume increase by the new and higher gross margin products, the gross profit in the fourth quarter increased by 7% from the previous quarter to NT$757 million. The quarterly gross margin reached 20.8%, an increase from the previous quarter by 1.2%.


Due to increased R&D spending in new products, the fourth quarter operating expenses increased moderately compared with the third quarter. The fourth quarter operating net profit was NT$36 million.  In addition, benefiting from non-operating income, the net profit after tax in the fourth quarter was NT$76 million, and earnings per share was NT$0.37. This QoQ 39% reduction was mainly due to the impact of exchange rates. However, YoY increase reached 112.6%.


We had delivered 26% YoY more chips in 2023 due to new products. However, affected by fierce price competition, sales revenue only increased by 5% to NT$13.57 billion in 2023. The gross margin for 2023 was raised to 20%, and the gross profit was NT$2.71 billion. The profit has improved significantly compared with 2022. The net profit after tax in 2023 was NT$353 million, and the earnings per share was NT$1.74.


Although the first quarter is a slow season, with the introduction of new products in past few quarters, FocalTech has worked with customers in IDC(TDDI) to enter new markets such as Southeast Asia and India. In addition, as the penetration rate of AMOLED mobile phones continues to increase, it drives the growth of AMOLED Touch IC shipments in Q1 as well. It is expected that the revenue in the Q1 2024 will be better than the same period in 2023.


In addition to achievement in the mobile phones segment, we have started to see new Touch IC businesses in NB and high value-added industrial applications. It is expected to bring in new revenue and profit stream. Furthermore, FocalTech continues to allocate R&D resources to improve product performance and to add sales effort to develop new customers and gain market share.


FocalTech continues to innovate new IDC (TDDI) design to reduce cost and improve gross margin. Of the AMOLED display controller, the products for wearables are in mass production. As for smartphone AMOLED, we have some products in customer AVL phase. We continue to develop new products for this ever changing market. We expect to win certain market share in AMOLED driver market by these.


We continue to see shipment growth in automotive chips.  The latest automotive IDC chips are more competitive in specification, performance and cost.  They have been widely accepted by existing customers and new customers from international automotive brands. This sector will become an important growth driver for the company in the future.




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