Announces Consolidated Financial Results for Q2, 2024

Investors

2024/08/09

FocalTech Systems Reports Consolidated Financial Results for Second Quarter 2024

Date: 2024/08/09

FocalTech Systems Co., Ltd. (TWSE: 3545) today (09) held its investor conference to report its consolidated financial results for Second quarter 2024.

In Q2 2024, AMOLED touch IC sales revenue grows significantly due to the demand of AMOLED-based smart phones continue to increase. On the other hand, sales of IDC (TDDI) for LCD-based phones decreased due to the price erosion, which has been continuing over several quarters. As for automotive IDCs, due to the high tariff imposed on China mainland by EU and US, the growth in this sector did not meet the previous expectation. Overall sales revenue in Q2 was NT$2.977 billion, a quarterly (QoQ) decrease of 16.4% and an annual (YoY) decrease of 4.3%.

Due to sales growth of higher-margin AMOLED touch ICs, the gross profit rate reached 24.3%, an increase of 2.1% QoQ. However, due to lower total sales revenue, gross profit amount fell to NT$722 million. On the other hand, operation expense reduced to NT$721 million, thus the net operation profit in Q2 was NT$1 million. Benefiting from non-operating income, net profit after tax was NT$106 million. EPS for this quarter was NT$0.51.

The third quarter is traditionally a hot season. As many cellphone makers are beginning to introduce new AI-based smart phones, stronger sales is expected in the high-end mobile phone segment this year. At the same time, the price pressure on mid-to-low-end IDC (TDDI) ICs may have come near an end. We start to see volume demand increase now. Because FocalTech's products cover many segments of mobile phones, we expect to see some revenue growth in the coming quarters.

FocalTech continues to invest in R&D to develop higher-end LCD IDC(TDDI) products. With years of effort, the sales revenue in Automotive, NB, AIoT, and Industrial Control segments has been increasing noticeably. These new segments will also become an important source of profit for FocalTech. On the other hand, the AMOLED based products are also becoming more popular, FocalTech, as a leader in the touch ICs, will continue to launch new products in both touch IC and display drivers to improve the company's long-term profits.

About FocalTech

FocalTech Group is the leader in human and machine interface technologies, providing solutions for sensing and display. FocalTech has strong capabilities in α-TFT, LTPS, and OLED display driver design, capacitive 2D/ 3D touch controller/algorithm, ITO sensing pattern, capacitive/optical fingerprint/physiological measurement algorithm. FocalTech offers TFT LCD / OLED driver IC, touch controller IC, force touch controller IC, integrated driver controller (IDC/TDDI), capacitive and optical fingerprint IC. For more information, please visit http://www.focaltech-electronics.com

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