RichWave Technology (4968) Q3 2024 earnings summary

Executive summary

• Focus on expanding WiFi 7 product lines and shipments, especially in EU carrier and retail markets.

• Diversified offerings in IoT, mobile, and automotive applications, with continued growth in these segments.

• Net operating revenue for the nine months ended September 30, 2024 was NT$2,781,537 thousand, up 32% year-over-year.

• Net profit for the nine months ended September 30, 2024 was NT$86,223 thousand, compared to a net loss of NT$188,397 thousand in the same period last year.

• Emphasis on technology leadership and customer service to create long-term value.

Financial highlights

• Q3 2024 net revenue was NT$908.8 million, down 10% sequentially but up 23% year-over-year.

• Gross profit for Q3 2024 was NT$286.1 million, representing a 32% margin, down 21% sequentially but up 50% year-over-year.

• Net income after tax for Q3 2024 was a loss of NT$17.5 million, compared to a profit of NT$75.9 million in Q2 2024 and a loss of NT$45.0 million in Q3 2023.

• EPS for Q3 2024 was -$0.19, compared to $0.84 in Q2 2024 and -$0.50 in Q3 2023.

• Earnings per share for the nine months were NT$0.95, compared to a loss per share of NT$2.09 year-over-year.

Outlook and guidance

• Continued growth expected in WiFi 7 shipments and design wins.

• Automotive and mobile segments identified as high-growth opportunities.

• The company continues to focus on wireless communication products, with a stable capital management strategy and ongoing assessment of new IFRS standards.