Sercomm (5388) Q4 2024 earnings summary

Executive summary

• Net sales for Q4 2024 were NT$13,425 million, down 14.1% year-over-year and flat sequentially from Q3 2024.

• Full-year 2024 net sales reached NT$56,789 million, a 9.3% decrease from 2023.

• Net income attributable to owners for Q4 2024 was NT$505 million, down 27.7% year-over-year and 7.5% sequentially.

• Consolidated financial statements for 2024 and 2023 were audited and received an unmodified opinion, confirming fair presentation in accordance with IFRS and local regulations.

• The group is primarily engaged in R&D, manufacturing, and sales of networking communication software and equipment, with global operations and subsidiaries.

Financial highlights

• Operating revenue for 2024 was NT$56,788,762 thousand, down 9% year-over-year from NT$62,584,493 thousand.

• Net income attributable to owners was NT$2,271,006 thousand in 2024, compared to NT$2,386,305 thousand in 2023.

• Q4 2024 gross profit margin was 18.1%, slightly down from 19.5% in Q4 2023, while full-year gross margin improved to 18% from 16% in 2023.

• Basic EPS was NT$7.74 in 2024, down from NT$9.17 in 2023.

• Cash and cash equivalents at year-end 2024 were NT$8,306 million.

Outlook and guidance

• The Board proposed a 2024 cash dividend of NT$4.60 per share, subject to shareholder approval.

• Plans for a private offering of up to 27 million shares or convertible bonds and issuance of 5 million employee restricted shares and 60,000 stock option certificates were approved by the Board, pending regulatory approval.