Formosa Sumco Technology (3532) Q4 2023 earnings summary

Executive summary

• FY2023 revenue and earnings declined YoY as gross and operating margins contracted, while major capacity investment drove a sharp increase in assets and borrowing.

• Audit opinion was unmodified; revenue recognition for silicon-wafer sales based on customer delivery or actual usage was identified as a key audit matter.

Financial highlights

• Revenue was NT$14.876bn in FY2023 vs NT$16.393bn in FY2022; gross profit was NT$5.027bn vs NT$6.176bn.

• Operating income was NT$4.078bn vs NT$5.185bn; pretax income was NT$4.302bn vs NT$5.993bn.

• Net income was NT$3.459bn vs NT$4.822bn; basic and diluted EPS were NT$8.92 vs NT$12.43.

• Operating cash flow was NT$3.650bn vs NT$12.254bn; cash and cash equivalents ended FY2023 at NT$4.321bn vs NT$10.809bn.

Segment performance

• Silicon-wafer products were the sole reportable segment; segment revenue was NT$14.876bn vs NT$16.393bn, and segment profit was NT$4.275bn vs NT$5.972bn.

• Sales by destination: Taiwan NT$11.461bn, Japan NT$3.376bn and China NT$38.792m in FY2023.