Chroma ATE (2360) Q4 2023 earnings summary

Executive summary

• FY23 revenue was NTD18,676m, down 15% YoY; net income fell 22% to NTD4,096m, while gross margin improved to 58% from 52%.

• Auditors issued an unmodified opinion; occurrence of sales revenue from specific customers was a key audit matter after customer revenue changed significantly YoY.

Financial highlights

• FY23 gross profit was NTD10,757m, down from NTD11,357m; operating income was NTD4,673m versus NTD5,039m, and profit before tax was NTD5,166m versus NTD6,441m.

• Profit attributable to owners was NTD3,979m versus NTD5,106m; basic EPS was NTD9.45 versus NTD12.14, and diluted EPS was NTD9.37 versus NTD12.00.

• Q4 sales were NTD5,025m, up 4% QoQ and down 17% YoY; gross profit was NTD2,579m and gross margin was 51%.

• Q4 operating income was NTD1,034m, down 2% YoY; net income was NTD825m, down 10% YoY and 34% QoQ, and basic EPS was NTD1.89.

• Operating cash flow was NTD3,408m versus NTD5,297m; cash and cash equivalents ended at NTD4,132m, down from NTD5,942m.

Outlook and market conditions

• 2024 growth momentum was expected primarily from semiconductor/photonics, HPC/AI testing demand, and a mature-node 28nm ATE recovery.

• HPC/AI development and chip-performance optimization were expected to drive SLT tester demand; power-testing instruments and ATS solutions were expected to sustain steady growth.

• EV and ESS were major 2023 sales contributors; AI/HPC applications across advanced packaging, data centers and optical communications informed product development.