Innodisk (5289) Q4 2023 earnings summary

Executive summary

• FY2023 revenue was NTD 8,313,778 thousand and net income was NTD 1,144,167 thousand, both below FY2022; gross margin improved to 34.2%.

• Auditors issued an unqualified opinion; key audit matters were inventory valuation and existence of sales revenue from the top 10 customers.

Financial highlights

• Revenue was NTD 8,313,778 thousand vs NTD 10,303,229 thousand in FY2022; gross profit was NTD 2,845,912 thousand vs NTD 3,458,618 thousand.

• Operating expenses rose 3.3% to NT$1.466B; operating profit fell 32.3% to NT$1.380B, while pretax profit fell 36.9% to NT$1.431B.

• Net income was NTD 1,144,167 thousand vs NTD 1,881,288 thousand; parent-attributable income was NTD 1,147,616 thousand vs NTD 1,850,189 thousand.

• Gross margin was 34.2% vs 33.6% in 2022; operating margin was 16.6% vs 19.8%, and net profit rate was 13.8% vs 18.5%.

• Basic EPS was NTD 12.98 vs NTD 21.04 and diluted EPS was NTD 12.74 vs NTD 20.81; operating cash flow was NTD 1,457,695 thousand vs NTD 2,515,094 thousand.

Outlook and guidance

• DDR5 6400MT/s CUDIMM and CSODIMM samples planned for 2024 Q2, in 16GB, 24GB, 32GB and 48GB capacities.

• CXL 2.0 Type 3 64GB memory expansion, targeting AI servers, data centers and machine learning, planned for sampling in 2024 Q3.

• Strategic focus shifts from industrial PCs toward AI and AIoT, with edge AI solutions, products and global sales campaigns intended to expand reach.