Accton Technology (2345) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024, was NT$43.26 billion, up 8.7% year-over-year; net income reached NT$4.82 billion, a 12.7% increase from the prior year period.

• Gross margin remained stable at 21%, while operating income margin was 11%, slightly down from 13% in the prior year.

• Total comprehensive income for the six months was NT$7.25 billion, boosted by significant unrealized gains on equity investments.

Financial highlights

• Operating revenue for Q2 2024 was NT$24.41 billion, up 21% year-over-year.

• Gross profit for the six months was NT$9.12 billion, up 3.5% year-over-year.

• Earnings per share for the six months were NT$8.64 basic and NT$8.59 diluted, compared to NT$7.67 and NT$7.61 in the prior year.

• Cash and cash equivalents at June 30, 2024, were NT$13.51 billion.

• Inventory write-downs for the six months totaled NT$63.73 million.

Outlook and guidance

• The company expects to meet the carbon emissions threshold in 2024, potentially incurring carbon fees once regulations are finalized.

• Management continues to monitor the impact of new IFRS standards effective in 2025 and beyond.