Lite-On Technology (2301) investor relations material

Executive summary

• Q1 2026 revenue reached NT$43.4 billion, up 19% year-over-year, driven by strong AI and cloud demand, with Cloud & AIoT segment delivering nearly 50% annual growth.

• Net profit after tax was NT$3.78 billion, EPS NT$1.66, marking a 10% year-over-year increase and a five-year high for Q1.

• Cloud-related revenue grew over 70% year-over-year, reflecting robust operational performance and technology innovation.

• Strategic investments and expansion in the U.S. and Vietnam support AI infrastructure growth and global capacity expansion.

• Optoelectronics and IT & CE segments saw enhanced shipments, especially in high-end and LEO satellite power supplies.

Financial highlights

• Gross profit was NT$9.4 billion with a margin of 21.7%; operating profit was NT$4.1 billion, margin 9.4%.

• Excluding a one-time inventory write-down (about 1.05% of revenue), gross margin was 22.8% and operating margin 10.5%.

• Q1 revenue grew 19% year-over-year but declined 2% sequentially due to consumer segment adjustments.

• Net cash position stood at NT$54.6 billion, down NT$3.3 billion quarter-over-quarter due to CapEx and M&A.

• Accounts receivable days: 79; inventory days: 69; cash conversion cycle: 54 days.

Outlook and guidance

• Q2 2026 revenue and profit expected to exceed Q1, driven by new AI power products and satellite power supplies.

• High-end AI server power and liquid cooling solutions to enter mass production, supporting future growth.

• AI-related revenue targeted to reach nearly 30% of total revenue by year-end.

• Power solutions for LEO satellites expected to double revenue in Q2 and full year.

• Participation in COMPUTEX Taipei in June to showcase AI, cloud, and power solutions.