Faraday Technology (3035) Q3 2024 earnings summary

Executive summary

• 3Q24 revenue reached NT$2,884 million, up 8.9% QoQ and down 2.6% YoY.

• Net income for 3Q24 was NT$276 million, up 2.9% QoQ but down 19.1% YoY.

• Basic EPS for 3Q24 was NT$1.01.

• All main product categories grew QoQ; IP and NRE revenues set new records.

• Advanced packaging projects entered mass production, marking a business milestone.

Financial highlights

• Gross profit improved to NT$1,338 million, up 7.1% QoQ and 4.4% YoY.

• Gross margin was 46.4%, down from 2Q24 but up from 3Q23.

• Operating income was NT$309 million, up 20.3% QoQ and down 27.9% YoY.

• Operating margin improved to 10.7% from 9.7% in 2Q24.

• Operating expenses increased 3.7% QoQ and 20.6% YoY.

Segment performance

• IP revenue reached NT$446 million, up 29.4% QoQ and 35.3% YoY, a new record.

• NRE revenue was NT$649 million, up 1% QoQ and 102% YoY, also a record.

• MP revenue was NT$1,789 million, up 8% QoQ and down 23% YoY.

• Sales mix in 3Q24: MP 62%, NRE 23%, IP 15%.

• Technology mix for NRE and MP segments shows increased advanced node contribution.