Novatek Microelectronics (3034) Q2 2024 earnings summary

Executive summary

• Q2 2024 net sales reached NT$25.23 billion, down 16.7% year-over-year but up 3.3% sequentially from Q1 2024.

• Net income for Q2 2024 was NT$5.39 billion, a 21.6% decrease year-over-year but a 10.1% increase sequentially.

• EPS for Q2 2024 was NT$8.86, compared to NT$11.29 in Q2 2023 and NT$8.04 in Q1 2024.

• For H1 2024, net sales totaled NT$49.66 billion, down 8.6% year-over-year.

• The company operates as a single business segment focused on integrated circuit design and flat panel display products.

Financial highlights

• Gross margin for Q2 2024 was 41.1%, slightly lower than 41.7% in Q2 2023 and stable from Q1 2024.

• Operating income for Q2 2024 was NT$5.50 billion, down 27.1% year-over-year but up 7% sequentially.

• Net income for H1 2024 was NT$10.28 billion, an 11.5% decrease year-over-year.

• Basic EPS for H1 2024 was NT$16.90, down from NT$19.10 in H1 2023.

• Cash and cash equivalents as of June 30, 2024, were NT$62.3 billion, up from NT$53.9 billion at year-end 2023.

Segment performance

• Q2 2024 sales: Driver ICs contributed NT$14.32 billion (57%), SoC NT$10.67 billion (42%).

• Driver IC sales declined from NT$19.33 billion in Q2 2023 to NT$14.32 billion in Q2 2024.

• SoC sales also decreased year-over-year but increased sequentially from Q1 2024.