eMemory Technology (3529) Q4 2023 earnings summary

Executive summary

• Q4 revenue rose 14.2% QoQ to NT$898.9M, while FY2023 revenue fell 5.2% YoY to NT$3,050.3M; annual royalty revenue declined 14.1%.

• Licensing growth and advanced-node security IP adoption supported the outlook, while a customer node transition is expected to temporarily weigh on Q1 royalties.

Financial highlights

• Q4 revenue was NT$898.9M, up 14.2% QoQ and down 0.4% YoY; FY2023 revenue was NT$3,050.3M, down 5.2% YoY.

• Q4 net income attributable to shareholders was NT$403.8M; FY2023 net income was NT$1,474.4M, down 8.5% YoY.

• FY2023 licensing revenue increased 24.8% YoY to NT$925.8M, while royalty revenue decreased 14.1% to NT$2,124.5M.

Outlook and guidance

• Strong licensing demand is expected to sustain licensing-fee growth; Q1 royalties are forecast to decline by single digits QoQ due to a customer moving to a more advanced node, but grow YoY.

• Overall revenue is expected to decline by single digits QoQ and increase by double digits YoY in Q1.

• More foundry technology licensing is expected in specialty processes this quarter; per-wafer royalty ASP is expected to rise as development advances to newer nodes.