Global Unichip (3443) Q2 2024 earnings summary

Executive summary

• 2Q24 revenue reached NT$6,720M, up 18% sequentially and 2% year-over-year.

• Net income for 2Q24 was NT$907M, up 37% sequentially and 8% year-over-year.

• Gross margin improved to 30.6% in 2Q24.

• EPS for 2Q24 was NT$6.78, up from NT$4.94 in 1Q24 and NT$6.26 in 2Q23.

• Digital Consumer remained the largest application segment, with AI/ML and Networking contributing 39% combined.

Financial highlights

• NRE revenue surged 104% sequentially and 123% year-over-year to NT$2,821M.

• Turnkey revenue declined 8% sequentially and 26% year-over-year to NT$3,823M.

• Operating income rose 46% sequentially to NT$1,031M, with operating margin at 15.3%.

• Net profit margin improved to 13.5% in 2Q24 from 11.7% in 1Q24 and 12.7% in 2Q23.

• Cash and cash equivalents at quarter-end were NT$7,307M.

Outlook and guidance

• NRE revenue is expected to remain a key growth driver, especially in advanced nodes (5nm & below).

• Digital Consumer, AI/ML, and Networking applications are strategic focus areas.

• Management highlights ongoing investments in R&D and capacity to support future growth.

• Forward-looking statements indicate significant risks and uncertainties may impact future results.