Phison Electronics (8299) Q4 2023 earnings summary

Executive summary

• Q4 revenue reached NT$15.748B, up 28.1% YoY and 27.1% QoQ; gross profit was NT$5.673B, up 64.5% YoY and 42.2% QoQ.

• FY2023 revenue was NT$48,221.6m versus NT$60,256.1m; net profit was NT$3,624.4m versus NT$5,401.1m, and EPS was NT$18.48 versus NT$27.71.

• Cash and cash equivalents ended FY2023 at NT$14,220.4m, compared with NT$17,033.8m a year earlier.

Financial highlights

• Q4 operating profit was NT$1.541B, net income NT$2.084B and basic EPS NT$10.39; net income rose 142.9% YoY.

• Q4 gross margin was 36.0%, operating margin 9.8% and net profit margin 13.2%, versus 28.1%, 10.1% and 1.8% in Q4 2022.

• FY2023 gross profit was NT$16,164.4m versus NT$17,332.6m; operating income was NT$3,621.9m versus NT$6,843.9m, and profit before tax was NT$4,099.4m versus NT$6,296.9m.

• FY2023 gross margin was 33.4% versus 28.8%, operating margin 7.5% versus 11.4%, and net profit margin 7.5% versus 9.0%.

• February 2024 revenue was NT$4.665B, up 42% YoY; January–February revenue totaled NT$9.751B, up 58% YoY.

Segment performance

• Non-consumer/retail products represented 70%+ of Q4 revenue; NAND controller revenue rose 12% QoQ, while its revenue contribution fell as NAND module solutions grew faster.

• Q4 revenue mix: consumer/retail modules 28%, controllers 26%, gaming modules 15%, embedded ODM modules 12%, industrial modules 10%, enterprise 3% and others 6%.

• FY2023 flash memory module revenue was NT$36,619.1m versus NT$42,174.9m; controller revenue was NT$8,359.6m versus NT$13,907.2m.

• Asia revenue was NT$36,138.3m versus NT$47,089.9m; America revenue was NT$10,101.8m versus NT$10,588.9m. Operations comprise one segment focused on flash memory controllers and peripheral applications.