AP Memory Technology (6531) Q2 2025 earnings summary

Executive summary

• Achieved 45% sequential and 47% year-over-year revenue growth in Q2 2025, driven by strong performance across product lines.

• Significant foreign exchange loss of NT$977 million impacted reported net income, resulting in a net loss for the quarter.

• Excluding FX impact from unused GDR funds, net income was positive, with basic EPS of NT$0.12.

• Consolidated financial statements for the six months ended June 30, 2025, were reviewed with no material misstatements found by independent auditors, confirming compliance with relevant accounting standards.

• The company operates primarily in IC design, development, and sales, with a global presence and recent expansion through acquisitions.

Financial highlights

• Q2 2025 net revenue: NT$1,328.7M, up 45% QoQ and 47% YoY.

• Revenue for the six months ended June 30, 2025, was NT$2,303,663 thousand, up from NT$1,692,702 thousand year-over-year.

• Gross margin at 42% in Q2 2025, down from 46% in Q1 2025 and 44% for the six months, affected by product mix and NT$ appreciation.

• Reported net loss of NT$550.3M in Q2 2025 due to FX loss; net loss for the six months was NT$214,190 thousand.

• Basic EPS: -NT$3.36 reported in Q2; -NT$1.32 for the six months; NT$0.12 pro forma (excluding FX impact).

Outlook and guidance

• Expects significant revenue growth in 2025, led by rapid expansion in S-SiCap and double-digit growth in IoTRAM.

• VHM/VHMStack adoption underway, with first edge computing design-in secured.

• FX volatility and macroeconomic uncertainty expected to persist.

• Management continues to monitor capital structure and risk, with no externally imposed capital requirements.

• The company is managed as a single operating segment from 2025 onward, reflecting a focus on consolidated performance.