Phison Electronics (8299) Q1 2024 earnings summary

Executive summary

• Q1 revenue reached NT$16.526B, up 64.0% YoY; net income attributable to shareholders was NT$2.420B and basic EPS was NT$12.02.

• Non-consumer and retail products represented more than 70% of revenue; NAND controller revenue rose 2% QoQ.

• April revenue was NT$5.156B, up 53% YoY; Jan–Apr revenue totaled NT$21.682B, up 61% YoY.

• The review conclusion was qualified because certain non-significant subsidiaries’ financial statements were not independently reviewed.

Financial highlights

• Q1 revenue was NT$16.526B, up 4.9% QoQ and 64.0% YoY; USD revenue was $527M, up 6.9% QoQ and 59.2% YoY.

• Gross profit was NT$5.607B, up 75.1% YoY; gross margin was 33.9%.

• Operating profit was NT$1.252B, down 18.8% QoQ and up 49.3% YoY; operating expenses rose QoQ, partly due to treasury-share transfers and lower employee compensation reserves.

• Net income attributable to shareholders was NT$2.420B, up 16.1% QoQ and 899.5% YoY; basic EPS was NT$12.02 versus NT$10.39 in 4Q23 and NT$1.26 in 1Q23.

• Operating cash outflow was NT$7.898B versus NT$4.786B; inventory and prepayment increases were major working-capital cash uses.

Outlook and guidance

• April revenue was NT$5.156B, up 53% YoY; Jan–Apr consolidated revenue was NT$21.682B, up 61% YoY.

• 2025 market estimates cited client SSD TAM above $20B for modules and $1.4B for controllers; enterprise SSD module TAM was above $25B.

• aiDAPTIV targets on-premises generative-AI model fine-tuning; more than 80 proof-of-concept cases were cited, and powered workstation and server partners had begun sales and shipments.