FocalTech Systems Co., Ltd. (TWSE: 3545) today (21) held its investor conference to report its consolidated financial results for Fouth quarter 2024.  

The consolidated 4th quarter revenue of 2024 is NT$ 4.188 billion, a 9.8% growth compared to the previous quarter (QoQ), and a 15.3% growth compared to Q4/2023 (YoY). This revenue growth is better than expected because FocalTech’s touch IC continues to gain market share in smart phones and tablets. As for LCD IDC (TDDI) products, revenue grew slightly, which is in line with the expectation. 

The gross margin rate of the 4th quarter is 21.4%, which is slightly lower than the 3rd quarter due to product mix changes. Nevertheless, the total gross profit sums up to NT$ 896 million, which result in a net operating profit of NT$ 69 million.  With the additional non-operating income, the net profit after tax is NT$ 183 million, or an EPS of NT$0.86, which is the highest quarter in 2024.

Benefiting from the new LCD IDC (TDDI) and AMOLED touch controller products for both mobile phone and non-mobile phone applications thus the total shipment increase by 26% in 2024 compared to previous year. However, due to the continuing decline of cellphone LCD IDC (TDDI) prices, the total annual revenue growth rate is 7.2%, or  NT$ 14.54 billion.

Due to increased shipment in AMOLED touch products in 2024, the gross margin rate improves to 22.4%, and total gross profit amount is NT$ 3.26 billion which  is 20.3% more than 2023. The net operating profit is NT$ 167.9 million, a 36% growth compared to 2023.  The 2024 after-tax net profit is NT$ 568 million . The earnings per share is NT$ 2.71, representing a 61% growth compared to 2023. 

FocalTech’s board meeting has approved 2024 cash dividend payment of NT$ 378 million. Based on 2024 net income of around NT$568 million, cash dividend is approximately NT$1.7 per share .

The board of directors of FocalTech passed a resolution on February 21, 2025 and announced that company will buy back 3,000,000 issued ordinary shares (treasury shares) from the market. The scheduled repurchase date is from February 24, 2025 to April 23, 2025.

Q1 is generally a slow season due to holidays and fewer working days. Furthermore,  some shipments were pulled in in Q4 ahead of Chinese new year.  Thus, we expect the product shipment in Q1 will be lower than Q4 of 2024. However, shipments in other non-mobile phone applications are less influenced by the seasonal effect. This phenomenon will lead to a product mix, which gives better gross margin rate in the first quarter.

The new generation LCD IDC (TDDI) products have been adopted by several major tablet and automotive brands. We expect shipment to increase starting from Q2 and will further improve the gross margin in the 2nd half of the year.

After several years of R&D effort, we start to see AMOLED touch IC market share increase in not only in the smartphone, but also in tablets, automotive and other application segments driven by leading brands in the market. This product line will contribute a significant portion of revenue growth and long-term profitability.

About FocalTech

FocalTech Group is founded in 2006 and leading 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 and capacitive fingerprint. FocalTech offers TFT LCD / OLED driver IC, touch controller IC, force touch controller IC, integrated driver controller (IDC/TDDI) and capacitive fingerprint IC.

For more information, please visit http://www.focaltech-electronics.com