Phison Electronics (8299) Q1 2025 earnings summary

Executive summary

• Q1 revenue was NT$13.839B, up 10.1% QoQ but down 16.3% YoY; net profit was NT$1.141B versus NT$2.420B a year earlier.

• Gross margin reached 30.9%, supported by inventory write-down reversals; basic EPS was NT$5.53.

• Non-consumer/retail products contributed over 70% of revenue, as focus shifted toward enterprise, embedded and industrial products.

• aiDAPTIV solutions are expanding globally across healthcare, government, education, finance and manufacturing.

Financial highlights

• Gross profit was NT$4.313B; operating income was NT$1.162B, up 223.9% QoQ and down 7.2% YoY.

• Net profit attributable to parent shareholders was NT$1.141B versus NT$2.420B YoY; inventory write-down reversal and forex gains added NT$1.40 and NT$0.84 to EPS, respectively.

• April consolidated revenue was NT$6.003B, up 5% MoM and down 8% YoY.

• R&D expenses are expected to remain flat YoY despite new technology investments.

Outlook and guidance

• June-quarter revenue is expected to be much higher than Q1; April revenue reached NT$6.003B.

• A strong second half is anticipated, supported by AI edge adoption and NAND market strength, with geopolitical and currency risks remaining.

• Non-consumer/retail revenue and aiDAPTIV adoption are expected to continue growing, supporting more stable performance.

• Inventory may rise slightly to support shipments but is expected to average below NT$30B for the year.