Lite-On Technology (2301) investor relations material

Executive summary

• Q1 2026 revenue reached NT$43.4 billion, up 19% year-over-year, driven by strong AI and cloud demand.

• Cloud and AIoT segment revenue surged nearly 50% YoY, now comprising 53% of total revenue, with cloud-related business revenue growing over 70%.

• Net profit after tax was NT$3.78 billion, EPS NT$1.66, up 10% YoY, marking a five-year high for Q1.

• Growth momentum continues despite a 2% sequential revenue decline due to consumer segment adjustments.

• Opto-semiconductors and IT & CE segments saw enhanced shipments, especially in high-end and LEO satellite power supplies.

Financial highlights

• Gross profit was NT$9.4 billion (21.7% margin), operating profit NT$4.1 billion (9.4% margin), both up YoY.

• Excluding a one-time inventory write-down (1.1% of revenue), gross margin was 22.8% and operating margin 10.5%.

• Cloud and AIoT operating profit grew 60% YoY to NT$3.4 billion.

• Optoelectronics revenue rose 5% YoY to NT$7.2 billion; ITC/IT & CE revenue fell 5% YoY to NT$13.3 billion.

• Net cash position at NT$54.6 billion, down NT$3.3 billion QoQ due to CapEx and M&A.

Outlook and guidance

• Q2 revenue and profit expected to exceed Q1, driven by new AI power products and satellite power demand.

• Mass production of 110 kW power shelf to begin in June; 800 VDC 1.5 MW power rack qualification in Q3, with shipments pulled forward to Q4.

• AI-related revenue targeted to reach 30% of total revenue in 2026.

• Cloud computing revenue growth expected to exceed 70% YoY in 2026, but slow in 2027.

• Power solutions for LEO satellites expected to double revenue in Q2 and full year.