Advantech (2395) Q4 2023 earnings summary

Executive summary

• FY2023 revenue fell 6% YoY to NT$64.568bn amid weaker demand, inflation and geopolitical uncertainty; net income attributable to shareholders reached a record NT$10.838bn, up 1% YoY.

• Q4 revenue declined 12% YoY to NT$15.138bn; gross margin was 41.1%, net income after tax NT$2.291bn and basic EPS NT$2.67.

• Profitability held up through operating-efficiency improvements and inventory management despite lower sales.

Financial highlights

• FY2023 operating revenue was NT$64.568bn vs. NT$68.745bn in 2022; gross profit rose to NT$26.162bn from NT$26.113bn.

• Operating profit was NT$12.128bn vs. NT$12.532bn; profit before tax was NT$13.267bn vs. NT$13.443bn.

• Consolidated profit was NT$10.789bn vs. NT$10.743bn; parent-attributable profit was NT$10.838bn vs. NT$10.757bn.

• Operating cash flow was NT$9.665bn; investing and financing cash outflows were NT$2.573bn and NT$8.064bn, respectively; year-end cash was NT$11.012bn.

Segment performance

• Industrial-IoT revenue was NT$16.751bn vs. NT$19.322bn; Embedded-IoT NT$17.249bn vs. NT$16.868bn; Applied Computing NT$9.866bn vs. NT$9.453bn.

• Industrial Cloud & Video revenue was NT$7.584bn vs. NT$8.653bn; Service-IoT NT$6.173bn vs. NT$6.604bn; Service Plus and Others NT$6.946bn vs. NT$7.844bn.

• Segment income was NT$5.385bn for Industrial-IoT, NT$3.957bn Embedded-IoT, NT$2.279bn Applied Computing, NT$1.286bn Industrial Cloud & Video, NT$809m Service-IoT and NT$443m Service Plus and Others.

• Embedded boards and chassis revenue was NT$34.680bn vs. NT$34.388bn; industrial computers and control NT$22.912bn vs. NT$26.699bn; after-sales service and other revenue NT$6.976bn vs. NT$7.658bn.