Global Unichip (3443) Q3 2024 earnings summary

Executive summary

• 3Q24 revenue was NT$6,612M, down 2% sequentially and 3% year-over-year, with gross margin improving to 35.8% from 30.6% in 2Q24 and 31.9% in 3Q23.

• Net income for 3Q24 was NT$1,034M, up 14% sequentially and 1% year-over-year; EPS was NT$7.71, up 14% sequentially and 1% year-over-year.

• Operating income rose 15% sequentially and 8% year-over-year to NT$1,190M, with operating margin at 18.0%.

• Digital Consumer remained the largest application segment, while AI/ML and Networking contributed 36% of revenue.

• Taiwan, China, and USA accounted for 70% of 3Q24 revenue.

Financial highlights

• NRE revenue grew 4% year-over-year but declined 14% sequentially; Turnkey revenue fell 10% year-over-year but rose 5% sequentially.

• Gross profit reached NT$2,366M, up 15% sequentially and 9% year-over-year.

• SG&A expenses surged 57% sequentially and 31% year-over-year; R&D expenses increased 5% sequentially and 4% year-over-year.

• Cash and cash equivalents rose to NT$9,257M at quarter-end, with operating cash flow of NT$2,626M in 3Q24.

• Inventory turnover days improved to 80 days, down from 87 in 2Q24 and 119 in 3Q23.

Outlook and guidance

• Forward-looking statements indicate significant risks and uncertainties; actual results may differ materially from expectations.