ASPEED Technology (5274) Q2 2024 earnings summary

Executive summary

• Revenue for the six months ended June 30, 2024 was NT$2,369.5 million, up 75% year-over-year, with net income of NT$899.1 million, a 111% increase from the prior year period.

• Gross margin remained strong at 63% for the period, with operating income up 128% year-over-year to NT$966.6 million.

• Earnings per share for the six months were NT$23.79 basic and NT$23.76 diluted, compared to NT$11.30 and NT$11.27, respectively, in the prior year.

• Cash and cash equivalents increased to NT$2,538.6 million as of June 30, 2024, from NT$1,611.5 million at year-end 2023.

• The company distributed NT$20 per share in cash dividends during the period.

Financial highlights

• Operating revenue for Q2 2024 was NT$1,356.0 million, up 99% from NT$680.0 million in Q2 2023.

• Net income for Q2 2024 was NT$507.8 million, more than double the NT$240.4 million in Q2 2023.

• Operating expenses rose to NT$533.6 million for the six months, up from NT$451.9 million year-over-year, mainly due to higher R&D and administrative costs.

• Cash flow from operating activities for the six months was NT$1,076.6 million, up from NT$539.2 million in the prior year.

• Total assets as of June 30, 2024 were NT$5,810.5 million, with equity of NT$3,991.2 million.

Outlook and guidance

• Management expects continued strong demand for multimedia integrated circuits and computer peripherals, with a focus on maintaining high gross margins.

• The company is monitoring market and currency risks, with sensitivity to USD exchange rates due to high exposure in sales.