FocalTech Systems Reports Consolidated Financial Results for First Quarter 2024
Date: 2024/05/10
FocalTech Systems Co., Ltd. (TWSE: 3545) today (10) held its investor conference to report its consolidated financial results for First quarter 2024. Although the first quarter is traditionally a slow season, the shipment of AMOLED Touch IC and tablet are better than expected due to increased penetration rates of AMOLED mobile phones and the production ramp up of new projects. It resulted in similar shipment volume as the fourth quarter of last year. Revenue in the first quarter of 2024 was NT$3,561 million, a slight decline of 2% compared to the previous quarter (QoQ), but a growth of 10.4% compared to the same period of last year (YoY).
With the older-and-higher-cost inventory gradually sold-out in past few quarters and the steady increase in shipments of new-and-higher-margin products, the total gross profit in the first quarter increased by 4.6% compared to previous quarter, reaching NT$792 million. The gross margin rate for this quarter reached 22.2%, an increase of 1.4% from previous quarter.
FocalTech continues to increase R&D investment in new product innovation which has resulted in higher operating expenses compared to the same period of last year and previous quarter. The net operating profit for the first quarter was NT$8 million. Benefiting from non-operating income, the after-tax net profit was NT$112 million. The earnings per share was NT$0.54, which is 47% and 123% growth compared to previous quarter and the same period of last year, respectively.
The global smartphone shipment volume in the second quarter of 2024 are not expected to increase significantly compared to the first quarter. However, we see a trend of user preference shifting from TFT LCD to AMOLED panels. This trend imposes a positive force for FocalTech to ship more of higher-margin products. The company estimates that the revenue in the second quarter will go through a bumpy ride, but the gross margin rate will continue to increase.
Following Xiaomi’s release of the SU7, the competition among automakers in China mainland becomes even more fierce. As a pioneer of IDC (TDDI) for the automotive applications, FocalTech has created a wide product portfolio and a good coverage of the market. After seeing about 6 months of so-called inventory corrections up and down the supply chain, we start to see rush orders coming back. Our shipments of automotive products are expected to return on a growth curve again.
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
