Sercomm (5388) Q1 2025 earnings summary

Executive summary

• Operating revenue for Q1 2025 was NT$11,354 million, down 30% year-over-year from NT$16,193 million in Q1 2024.

• Net income attributable to owners was NT$305 million, a 55% decrease from NT$675 million year-over-year.

• Gross margin improved to 19% from 17% year-over-year despite lower revenue.

• Earnings per share (EPS) were NT$1.02 basic and NT$1.00 diluted, compared to NT$2.35 and NT$2.27 in Q1 2024.

Financial highlights

• Operating profit was NT$359 million, down from NT$857 million year-over-year.

• Cash and cash equivalents at March 31, 2025 were NT$9,045 million, compared to NT$10,577 million a year earlier.

• Total assets stood at NT$42,937 million, with total liabilities at NT$27,590 million and equity at NT$15,348 million.

• Operating cash flow for Q1 2025 was NT$2,147 million, up from NT$1,777 million year-over-year.

• Capital expenditures for property, plant, and equipment were NT$358 million in Q1 2025.

Outlook and guidance

• The company continues to monitor the impact of new IFRS standards and Pillar Two tax legislation, with no significant impact expected in the near term.

• Management remains focused on capital structure optimization and may adjust dividends or issue new shares as needed.