Phison Electronics (8299) Q3 2023 earnings summary

Executive summary

• 9M 2023 revenue was NT$32.47b and net income NT$1.54b, both below the prior-year period; Q3 revenue was NT$12.39b and net income NT$858m.

• Gross margin improved to 32% for both Q3 and 9M, compared with 24% and 29%, respectively, in the prior-year periods.

Financial highlights

• Q3 revenue was NT$12.39b vs NT$14.57b YoY; 9M revenue was NT$32.47b vs NT$47.97b.

• 9M operating income was NT$2.08b vs NT$5.60b YoY; Q3 operating income was NT$525m vs NT$1.22b.

• 9M operating cash flow was negative NT$464m vs positive NT$172m; cash and equivalents ended September at NT$13.89b.

• 9M inventory obsolescence reversal was NT$152m, compared with a NT$1.09b loss in the prior-year period.

Segment performance

• One operating segment: flash memory controller design and flash peripheral application integration, manufacturing and sales.

• 9M flash memory module revenue was NT$24.54b vs NT$33.21b YoY; controller revenue was NT$5.72b vs NT$11.40b.

• 9M Asia revenue was NT$23.65b vs NT$37.94b YoY; America revenue was NT$7.47b vs NT$7.93b.