eMemory Technology (3529) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue reached NT$893 million, up 11.2% sequentially and 28.2% year-over-year, with strong growth in both licensing and royalty streams.

• Net income for Q2 2024 was NT$475 million, a 10.3% increase from Q1 2024 and 35.1% higher than Q2 2023.

• Gross margin remained at 100%, with operating margin improving to 55.5% in Q2 2024.

• Focus on evolving from OTP to advanced security IP, MTP, and emerging memories, driving higher royalties per wafer as technology advances.

• Continued technology development and business expansion, including new IPs and advanced process nodes.

Financial highlights

• H1 2024 revenue totaled NT$1,695.8 million, up 24.3% year-over-year.

• Operating income for Q2 2024 was NT$495 million, up 17.7% sequentially and 34.3% year-over-year.

• EPS for Q2 2024 was NT$6.36, a 10.2% increase from Q1 2024 and 35.0% higher than Q2 2023.

• Cash at June 30, 2024 was NT$3.75 billion, up from NT$2.73 billion at year-end 2023.

• Net cash generated from operating activities in H1 2024 was NT$1.08 billion, up from NT$707 million in H1 2023.

Outlook and guidance

• Licensing revenue expected to maintain growth momentum due to strong demand from foundries and chip companies.

• Royalty revenue projected to grow sequentially in H2 2024 as new products ramp up.

• New IP technologies, including NeoFuse in FinFET HV and RRAM, are advancing to meet next-generation customer needs.

• CPU architecture for security IP will begin contributing to revenue.

• Continued optimism for growth in OLED DDI, AI, and advanced process nodes.