Phison Electronics (8299) Q4 2024 earnings summary

Executive summary

• FY24 revenue reached NT$58.94bn, up 22.2% year over year; net income rose to NT$7.95bn from NT$3.62bn, including a NT$4.29bn gain on associate-share disposal.

• 4Q24 revenue was NT$12.57bn, down 20.2% year over year and 9.8% sequentially; gross margin was 30.8%.

• 4Q24 net income was NT$2.39bn, up 246.2% year over year, with EPS of NT$11.63, boosted by the HSG share-disposal gain.

• Non-consumer/retail products contributed over 70% of 4Q24 revenue, reducing exposure to NAND market fluctuations.

Financial highlights

• FY24 gross profit was NT$19.11bn versus NT$16.16bn; gross margin was 32.4%.

• FY24 operating income was NT$3.53bn, below NT$3.62bn in FY23; operating cash flow recovered to NT$2.09bn from a NT$1.70bn outflow.

• Operating expenses rose to NT$15.57bn from NT$12.49bn; R&D expense increased to NT$12.59bn from NT$10.31bn.

• 4Q24 operating profit was negative NT$937m under TIFRS and NT$1.7bn on a non-TIFRS basis.

• FY24 EPS was NT$38.95; non-TIFRS EPS was NT$35.36, with adjustments mainly related to HSG share disposal and share-based compensation.

Outlook and guidance

• February 2025 revenue was NT$4.53bn, up 25% month over month and down 16% year over year.

• Management expects 2025 revenue and margin growth versus 2024, while warning of potential NAND supply constraints in H2 2025.

• Enterprise SSD and Adaptive solutions are expected to support future revenue and margin growth.

• No formal financial guidance was provided amid market volatility; risks include demand/supply changes, competition and global economic uncertainty.