WIN Semiconductors (3105) Q1 2025 earnings summary

Executive summary

• Q1 2025 consolidated revenue was TWD 3.58 billion, down 3.5% quarter-on-quarter and 20% year-on-year, with net profit attributable to owners at TWD 16 million and EPS of TWD 0.04.

• Gross margin was 16.7%, operating margin -6.1%, and net margin -1.8%.

• Total comprehensive loss was TWD 1,434.8 million, mainly due to unrealized losses on equity investments.

• Product mix shifted: cellular 30-35%, infrastructure 30-35%, Wi-Fi 10-15%, others 17%.

• Recognized for ESG: DJSI World, S&P Yearbook, TCSA Gold, MSCI ESG A, ISS ESG Prime.

Financial highlights

• Gross profit was TWD 598 million; operating loss was TWD 217 million.

• Non-operating income of TWD 156 million helped offset operating loss, resulting in a net loss of TWD 63 million and net margin of -1.8%.

• Book value per share was TWD 85.68; current ratio improved to 252%.

• Annualized ROE at 0.2%, up from -4% in 4Q24.

• Cash and equivalents stood at TWD 5.55 billion as of March 31, 2025.

Outlook and guidance

• Q2 2025 consolidated revenue expected to grow by low-teens percentage quarter-on-quarter.

• Gross margin for Q2 projected to remain in the high-teens to low-twenties range.

• Wi-Fi and optical businesses anticipated to drive Q2 growth, with infrastructure segment slightly down.

• Product mix in Q2 expected to favor high-volume, lower-margin segments.