FocalTech Systems Co., Ltd. (TWSE: 3545) today (09) held its investor conference to report its consolidated financial results for First quarter 2025.

The first quarter is traditionally a slow season for cellphones. Furthermore, some mobile phone customers pre-stocked in the fourth quarter of last year preparing for the Chinese New Year. As a result, this quarter's revenue fell by 28.5% (QoQ) to NT$2.993 billion. Compared with the same period last year (YoY), although overall shipment remained flat, revenue fell by 16% due to product mix change and the continuing price decline in low-end but high volume IDC (TDDI) display products. 

Although the first-quarter revenue was lower than previous quarter, the profit was still better than expected. This was due to the shipment decrease was limited mainly to low-margin display products, while high-margin products and non-mobile phone products were less affected by seasonality. The improved product mix resulted in significant increase in gross margin rate to 26.9%; a QoQ increase of 5.5% and YoY increase of 4.7% respectively. Benefiting further by the proper control of operating expenses and the non-operating income, the net profit was NT$171 million, or EPS of NT$0.8 for the quarter.  EPS declined slightly compared with the previous quarter, but increased more than 50% compared with the same period last year. 

As the market gradually recovers in the second quarter, shipment of mid to low-end  IDC (TDDI) display products are expected to increase.  For touch controller products, the demand is expected to be stable and healthy with reasonable visibility.  For non-cellphone products, as more new projects are scheduled to launch, shipments are expected to increase quarter by quarter. Without considering further exchange rate fluctuation, the revenue in the 2nd quarter is expected to grow comparing to the 1st quarter. 

Shipments of non-mobile phone products are expected to increase in the second quarter, which will continue to drive a better product mix and help maintain or improve gross margins. 

The uncertainty caused by tariff policies and exchange rate fluctuations will make it difficult to estimate future profits. These external factors are beyond our control. We will focus on product development and strengthening our resilience to cope with future uncertainties. 

FocaTech‘s tablet and automotive products have been adopted by major customers and have won a number of new projects.  It is expected that the new design wins will continue to contribute to higher revenue and profits.  Noticeably, FocalTech participated in the "21st Shanghai International Automobile Industry Exhibition" in April and won the "Annual Automotive Industry Chain Breakthrough Award", which is highly recognized by the industry. This demonstrated FoaclTech’s technical strength and market recognition in automotive market in China.

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