AP Memory Technology (6531) Q3 2024 earnings summary

Executive summary

• Net revenue for 3Q24 reached NT$1,274M, up 35% sequentially and 3% year-over-year, with gross margin at 52% and net income at NT$337M.

• Revenue for the nine months ended September 30, 2024 was NT$2,967M, a slight decrease from NT$3,064M year-over-year.

• Pro forma net income, excluding FX impact, was NT$454M, with EPS at NT$2.80.

• The company maintained a strong equity position with total equity of NT$11,380.5M as of September 30, 2024.

• No material misstatements were found in the financial statements per the independent auditor's review.

Financial highlights

• Gross margin improved to 52% in 3Q24 from 51% in 2Q24 and 41% in 3Q23.

• Operating income for the nine months ended September 30, 2024 was NT$714.8M, up from NT$569.2M year-over-year.

• Cash and cash equivalents stood at NT$3.92B as of September 2024, down from NT$8.74B at September 30, 2023.

• Shareholders' equity reached NT$11.38B, with net worth per share at NT$70.14.

• Foreign exchange losses of NT$191.4M were recorded in Q3 2024, compared to a gain of NT$285.1M in Q3 2023.

Outlook and guidance

• VHMTM/VHMStack™ adoption is ongoing, with multiple LLM design-ins and crypto MP continuing.

• IOTRAM™ and S-SiCap™ products are expected to drive growth, with mass production and revenue ramp in 2025.

• Embedded in package substrate partnerships are set for mass production in 2025.

• The company is assessing the impact of new IFRS standards effective in 2025 and 2026, with no material impact expected.

• Management continues to monitor market and regulatory changes for future financial reporting.