AP Memory Technology (6531) Q4 2024 earnings summary

Executive summary

• Fabless memory and IP company headquartered in Hsinchu, Taiwan, with global sales and R&D centers in the US, Taiwan, and China; 233 employees and 162M shares outstanding as of December 2024.

• Consolidated financial statements for 2024 and 2023 were audited with an unqualified opinion, confirming compliance with IFRS and local regulations.

• Key milestones include GDR issuance, Zentel acquisition, VHM™ 3D integration, and S-SiCap™ technology production.

• AP Memory Technology Corporation operates in IC design, development, and sales, with a global presence and subsidiaries in the US, China, and other regions.

• Key audit matter identified was the authenticity of significant sales revenue growth from specific customers in 2024.

Financial highlights

• Q4 2024 net revenue NT$1,225M, down 4% sequentially but up 5% year-over-year; gross margin 53%, up from 44% in Q4 2023.

• Full-year 2024 net revenue NT$4,192M, down slightly from NT$4,227M in 2023; gross margin 51%, up from 42% in 2023.

• Full-year 2024 net income NT$1,578M, up 9% year-over-year; basic EPS NT$9.73, up 9% year-over-year.

• Pro forma 2024 net income NT$1,274M and EPS NT$7.85, both down 12% year-over-year, excluding FX impact from unused GDR proceeds.

• Cash and cash equivalents at year-end 2024 were NT$4,189M, down from NT$8,864M in 2023.

Outlook and guidance

• IOTRAM™ and APSRAM™ expected to drive growth in ultra-low-power devices.

• VHM™/VHMStack™ adoption ongoing in AI/HPC product design; S-SiCap™ revenue ramp anticipated in 2025.

• Entering UHF RFID tag IC market, with mass production expected in 2025.

• The board proposed a NT$7.0 per share cash dividend for 2024, consistent with prior years.

• No material impact is expected from new or revised IFRS standards effective in 2025.