WIN Semiconductors (3105) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue was TWD/NT$3.71 billion, down 15% sequentially and 24% year-over-year, mainly due to declines in Wi-Fi PA and Cellular PA, while infrastructure and optics segments grew double digits quarter-on-quarter.

• Q4 gross margin was 20.4%, operating margin -1.3%, and net loss attributable to parent company was TWD/NT$352 million (EPS -0.83).

• Full-year 2024 revenue reached TWD/NT$17.46 billion, up 10% year-over-year, with EPS of TWD/NT$1.81 and gross margin at 23.2%.

• Capacity utilization dropped to 35% in Q4 from 50% in Q3, impacting profitability.

• Company recognized for ESG leadership, including DJSI World, S&P Global Sustainability Yearbook, and TCSA Gold Award.

Financial highlights

• Q4 gross profit was TWD/NT$758 million; operating loss was TWD/NT$48 million.

• Q4 net loss for the group was TWD/NT$530 million, net margin -14.3%.

• Full-year 2024 net income was TWD 340 million, net margin 1.9%.

• Book value per share rose to TWD 89.91 at year-end.

• Q4 capacity utilization fell to 35%; full-year average was 45-50%.

Outlook and guidance

• Q1 2025 revenue expected to decline mid-single digit percentage sequentially due to seasonality and fewer working days.

• Q1 2025 gross margin projected at high-teens percentage.

• Cellular and Wi-Fi businesses expected to rise slightly, infrastructure to remain flat, and optical business to decline in Q1 2025.

• CapEx for 2025 expected to be similar to 2024, around TWD 1 billion, with depreciation trending down.