Winbond Electronics (2344) Q3 2024 earnings summary

Executive summary

• Revenue for the nine months ended September 30, 2024 was NT$62.92 billion, up 13% year-over-year, with net income of NT$1.39 billion, reversing a net loss of NT$556 million in the prior year period.

• Gross margin improved to 30% from 30% year-over-year, while operating margin turned positive at 2% from -2% in the prior year.

• The company issued 320 million new shares in August 2024, raising capital and increasing share capital to NT$45 billion.

• Cash and cash equivalents at period end were NT$15.5 billion, down from NT$20.4 billion a year ago, mainly due to significant capital expenditures.

Financial highlights

• Operating revenue for Q3 2024 was NT$21.31 billion, up 9% year-over-year; Q3 net loss was NT$60 million, compared to net income of NT$178 million in Q3 2023.

• For the nine months, operating income was NT$1.25 billion, compared to an operating loss of NT$1.2 billion in the prior year.

• Basic EPS for the nine months was NT$0.29, compared to a loss per share of NT$0.19 in the prior year.

• Capital expenditures for property, plant, and equipment reached NT$13.8 billion in the nine-month period.

• Net cash from operating activities was NT$8.58 billion, while net cash used in investing activities was NT$13.29 billion.

Outlook and guidance

• Management expects to be subject to carbon fees starting in 2025, with provisions to be recognized based on actual emissions.

• The company continues to monitor the impact of Pillar Two income tax legislation on future financial performance.