Chroma ATE (2360) Q3 2024 earnings summary

Executive summary

• Q3 net sales reached TWD 5.632 billion, up 16% year-over-year and 2% sequentially; net income was TWD 1.45 billion, up 16% YoY, with EPS at TWD 3.39.

• Nine-month net sales totaled TWD 15.56 billion, up 14% YoY; net income rose 18% to TWD 3.86 billion, with EPS at TWD 9.00.

• Gross margin for Q3 was 59%, up from 57% a year ago; operating income for Q3 was TWD 1.51 billion, up 22% YoY.

• Testing equipment business contributed 92% of Q3 sales, up 12% YoY; MAS/automation sales surged 133% YoY.

• Auditor issued a qualified review due to unreviewed financials from certain non-significant subsidiaries, but found no material misstatements.

Financial highlights

• Gross margin for the first three quarters was TWD 9.1 billion, up 12% YoY; operating income for the period was TWD 3.92 billion, up 8% YoY.

• Free cash flow for the first three quarters was TWD 1.9 billion, up 60% YoY.

• EBITDA for the first nine months was TWD 2.95 billion, up 54% YoY.

• Total assets as of September 30, 2024, were TWD 35.46 billion; equity attributable to owners was TWD 23.25 billion.

• Cash and short-term investments stood at TWD 4.67 billion, down 3% from year-end.

Key financial ratios and metrics

• ROE for the first nine months was 22%, up from 18% YoY; ROA was 15%, up from 12% YoY.

• Inventory turnover improved to 192 days; accounts receivable turnover at three months.

• Current ratio as of September 30, 2024, was approximately 1.99x.