Faraday Technology (3035) Q4 2024 earnings summary

Executive summary

• 4Q24 revenues reached NT$2,953M, up 2.4% sequentially and 4.6% year-over-year, with gross margin at 42.8%.

• Net income for 4Q24 was NT$236M–NT$249M (EPS NT$0.91), down 9.8% sequentially and 29.7% year-over-year.

• Full-year 2024 revenues were NT$11,065M, a 7.5%–8% decrease from 2023.

• Full-year net income was NT$1,041M–NT$1,072M (EPS NT$4.04), down 31.3% year-over-year.

• Advanced packaging and AI applications drove growth, with mass production revenue up 22% sequentially in 4Q24.

Financial highlights

• 4Q24 gross margin was 42.8%, down from 46.4% in 3Q24 and 45.9% in 4Q23.

• 4Q24 operating income was NT$188M, a 39% sequential and 58.8% year-over-year decline.

• Non-operating items contributed NT$107M in 4Q24, a significant increase year-over-year.

• Full-year 2024 operating margin was 9.7%, down from 16.3% in 2023.

• Cash and cash equivalents at year-end 2024 were NT$8,311M, up from NT$5,715M at year-end 2023.

Segment performance

• 4Q24 mass production revenue was NT$2,184M, up 22.1% sequentially and 0.2% year-over-year.

• 4Q24 IP revenue was NT$440M, down 1.5% sequentially but up 26.7% year-over-year.

• 4Q24 NRE revenue was NT$329M, down 49.4% sequentially but up 10.5% year-over-year.

• For 2024, IP, NRE, and MP contributed NT$1,560M (+11.3%), NT$2,250M (+30.5%), and NT$7,255M (-17.9%) respectively year-over-year.

• FY2024 mass production revenue declined 18% year-over-year due to inventory adjustments.