FocalTech Systems Co., Ltd. (TWSE: 3545) today (13) held its investor conference to report its consolidated financial results for Third quarter 2024.  

The third quarter is normally a hot season for cellphones, the high-end mobile phone segment continues to drive the demand of Touch IC. Meanwhile, the demand of IDC (TDDI) for mid-to-low-end segment is also stronger than Q2 owing to the channel is replenishing the inventory after observing the price appears stabilized in the quarter . The sales from tablet and automotive segments also made a encouraging portion of this quarter. Overall sales revenue in Q3 reaches NT$3.813 billion, a quarterly (QoQ) increase of 28.1% and an annual (YoY) increase of 6%. 

Due to changes in the product mix, which comes from stronger sales of mid-to-low-end IDC (TDDI) ICs, the gross profit margin drops to 22.3% or by 2% QoQ. However, gross profit amount rises to NT$849 million due to higher total sales revenue. Operational expense is NT$761 million as planned, thus the net operation profit in Q3 is NT$88 million. Including the non-operating income, the net profit after tax is NT$168 million. EPS for this Q3 is NT$0.79.

We expect the shipments of mid-to-low-end IDC (TDDI) ICs for smartphones to continue in Q4. However, we expect price may drop again in Q4 due to less strained supply situation to Q3. Meanwhile, the penetration of AMOLED applications continues into various higher-value areas, including medium-to-large size displays, which will drive further growth of the Touch IC demand. Overall, revenue in Q4 is expected to grow slightly compared to Q3.

FocalTech is committed to research and development in human machine interface segment. After years of effort, AMOLED Touch ICs have expanded their market share not only in traditional smartphones, but also in new areas including foldable phones, tablets, notebooks, and automotive displays. By penetrating these products into multiple brand customers, these new applications are set to become an important source of profit, enhancing the company's long-term profitability.

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