FocalTech Systems Co., Ltd. (TWSE: 3545) today (8) held its investor conference to report its consolidated financial results for First quarter 2026.  

Despite the rising cost on global semiconductor manufacturing, severe shortage in memory, and a sharp drop in mobile phone demand, FocalTech returned to profitability in the first quarter of 2026. This result comes from an effective adjustment on product mix, which has been executed over the past few quarters. Key measures taken include accelerated development of new technologies and new products for non-mobile phone applications, better control of operating expenses and improved operational efficiency. In short, the worst situation appears to be behind us now and a gradual recovery is to be expected. 

On the revenue side, as described earlier, because of high manufacturing cost and memory shortage, the demand from mobile phone customers was weak. Furthermore, the first quarter is traditionally a slow season due to spring break with much fewer working days. The total revenue for the first quarter was NT$2.474 billion, which was a significant lower than the previous quarter or the same period of last year. 

Gross profit margin in Q1 increased by 2.2% compared to the previous quarter. This result basically came from a better product mix with less mobile phone-related shipments. With an increased net gross profit of NT$570 million and with a tight control of expense and one-time tax benefit, the net profit after tax was NT$5 million which resulted in earnings per share of NT$0.02. 

On operations side, inventory continued to decline, reaching a relative low yet healthy level in recent years. The Company also completed the share buyback program, which was announced last quarter. With all the effective actions, the company net asset value increased compared to the previous quarter. 

With the arrival of Q2, which traditionally is a high season, market demand is expected to rebound. Meanwhile, the Company has started adjusting selling prices to reflect the rising manufacturing cost. Supported by both volume and price, both revenue and profitability are expected to improve and return to a growth track in the coming quarters. 

FocalTech is advancing touch technology and expanding product portfolio into applications for large-size AMOLED panels such as tablets, laptops, and cars. Through the introduction of new technologies, FocalTech new products support thinner, lighter display modules with narrower bezels and offer superior touch performance. These products have been successfully tried out with several leading brand customers since the first quarter. Looking forward, as customer demand grows, shipments are expected to ramp up further supporting overall business. 

In the display driver area, FocalTech continues to expand into non-mobile phone applications to improve margins. In addition to IDC’s for amorphous LCD panels, new generation of LTPS and DDIC solutions have entered mass production with global automakers. Notebook IDC product has also entered major-brand supply chain and begun contributing revenue. With increasing share of high value-add products, gross margin is expected to improve, supporting long-term growth. 

FocalTech was ranked in the top 5% in the 12th Taiwan Corporate Governance Evaluation Contest, which was jointly organized by the Taiwan Stock Exchange (TWSE) and the Taipei Exchange (TPEx). This result has just been announced last week. Such honor recognizes FocalTech’s highest standards in corporate governance, internal control, risk management, ESG, and board functions. 

FocalTech’s touch controllers participated in NASA’s Artemis II lunar mission, which was successfully completed in April. Our products withstood extreme space conditions demonstrating our technical excellence with high degree of reliability. FocalTech’s long-term expertise in chip design has started gaining strong recognition from international customers beyond the mobile phone applications. Going forward, the Company will continue to expand into more high-end applications with our belief in high quality and sustainable business.

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