Powerchip Semiconductor Manufacturing (6770) Q3 2024 earnings summary

Executive summary

• Report covers nine months ended September 30, 2024, with Deloitte review and Board approval on November 1, 2024.

• Powerchip Semiconductor operates as a single reportable segment, focusing on IC R&D, manufacturing, and sales.

• Shares listed on TWSE since 2021; GDRs issued in 2022 and listed in Luxembourg.

Financial highlights

• Operating revenue for nine months: NT$33.59B, up 2% year-over-year; Q3 revenue: NT$11.65B, up 12% year-over-year.

• Net loss for nine months: NT$5.28B, compared to net income of NT$470M in prior year; Q3 net loss: NT$2.88B.

• Gross margin for nine months: 5% (NT$1.76B), down from 15% (NT$4.95B) year-over-year.

• Basic and diluted EPS for nine months: NT$(1.27), compared to NT$0.12 last year.

• Cash and cash equivalents at period end: NT$24.88B, down from NT$42.71B a year ago.

Outlook and guidance

• Board approved no dividend distribution for first half of 2024, reflecting focus on capital preservation.

• Company expects to be subject to carbon fees starting 2025, with provisions to be recognized based on actual emissions.