eMemory Technology (3529) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue reached NT$1.01 billion, up 12.4% sequentially and year-over-year; net income was NT$514.61 million, up 24.3% QoQ and 27.5% YoY; EPS was NT$6.89; ROE was 62.5%.

• Entering a multi-year growth cycle, driven by increased adoption of security IPs for edge AI and quantum-resistant applications.

• Technology portfolio includes OTP, MTP, and PUF-based security IPs, supporting improved chip performance, cost, and security.

• Record-high number of new tape-outs in 2024, supporting future royalty growth.

• NeoFuse technology led revenue contribution, with strong growth in PUF-based solutions.

Financial highlights

• FY 2024 revenue was NT$3.61 billion, up 18.2% YoY; net income attributable to shareholders was NT$1.83 billion, up 24.4% YoY; EPS was NT$24.57.

• Q4 2024 operating income: NT$565.9 million, up 12.1% sequentially and 23.8% year-over-year.

• Gross margin remained at 100% for Q4 2024 and the full year.

• Licensing revenue in Q4 2024 was NT$315.33 million (+8.5% QoQ, +15.1% YoY); royalty revenue was NT$695.39 million (+14.2% QoQ, +11.3% YoY).

• Net cash from operating activities in FY 2024 was NT$1.99 billion; cash at year-end was NT$3.31 billion, up NT$576 million YoY.

Outlook and guidance

• Licensing and royalty revenues expected to maintain growth momentum, supported by robust tapeout pipeline, new IP launches, and broader foundry adoption.

• Anticipates continued growth in advanced process nodes, expansion into automotive and HPC markets, and ongoing development of advanced IP technologies including 2nm, RRAM, and security modules.

• Operating margin expected to trend upward, despite fluctuations from non-operating items.

• New IPs being launched across more process nodes globally.

• Development of 2nm technology in collaboration with leading foundries.