Winbond Electronics (2344) Q1 2025 earnings summary

Executive summary

• 1Q25 consolidated net sales were NT$19,993M, up 7.0% QoQ but down 0.6% YoY; net loss widened to NT$987M from NT$678M in 4Q24 and NT$265M in 1Q24.

• Gross profit margin declined to 25.6% from 27.2% in 4Q24 and 27.6% in 1Q24; operating loss increased to NT$965M.

• Total comprehensive loss attributable to owners was NT$1,275.9M, reflecting unrealized losses on equity investments.

• Memory business saw a 1.6% QoQ revenue increase but a 39.4% drop in gross profit; logic business (Nuvoton) revenue rose 15.1% QoQ with improved profitability.

• Free cash flow remained negative at -NT$1,189M, with cash and equivalents rising to NT$18,378M.

Financial highlights

• Gross margin declined to 25.6% from 27.2% in 4Q24 and 27.6% in 1Q24.

• Operating loss increased to NT$965M; net loss to shareholders was NT$1,091M; EPS was -NT$0.24.

• EBITDA for 1Q25 was NT$2,435M, down from NT$2,719M in 4Q24.

• Book value per share was NT$20.10; debt/equity ratio at 0.85; current ratio at 1.44.

• Cash and cash equivalents at quarter-end were NT$18,378.5M, up from NT$13,710.2M a year ago.

Outlook and guidance

• NOR Flash demand expected to recover in 2Q25; SLC NAND supply to tighten in 2025.

• CMS oversupply may ease with demand and potential rush orders; DDR3/DDR4 price recovery continues.

• 20nm CMS revenue contribution rising; 24nm NAND Flash in mass production; focus on 4Gb/8Gb LPDDR4 in 2025.

• Secure Flash business expected to exceed 10% of NOR revenue by 2027, driven by regulatory and supply chain security needs.

• Management is monitoring new IFRS standards and Pillar Two tax legislation impacts.