Vanguard International Semiconductor (5347) Q4 2023 earnings summary

Executive summary

• Q4 revenue was NT$9,674 million, down 8.4% QoQ and up 1.1% YoY; gross margin fell to 23.0% from 26.5% QoQ and 39.2% in 4Q22.

• Q4 net income rose 47.1% QoQ to NT$2,388 million, while remaining 3.7% below 4Q22; FY2023 net income declined 51.8% YoY to NT$7,370 million.

Financial highlights

• Q4 gross profit was NT$2,228 million, down 20.4% QoQ and 40.7% YoY; operating income was NT$938 million, down 43.7% QoQ and 61.9% YoY.

• Q4 diluted EPS was NT$1.44 versus NT$0.98 in 3Q23 and NT$1.47 in 4Q22; wafer shipments were 489,000, down from 538,000 QoQ and up from 441,000 YoY.

• FY2023 revenue was NT$38,273 million, down 26.0% YoY; gross profit fell 56.3% to NT$10,446 million and operating income fell 67.6% to NT$5,774 million.

• FY2023 non-operating income rose 193.0% YoY to NT$3,060 million; income before tax fell 53.1% to NT$8,834 million and diluted EPS fell 51.2% to NT$4.43.

Outlook and guidance

• Q4 wafer shipments fell 9% QoQ, within guidance for an 8%–10% decline; blended ASP was flat QoQ versus guidance for a 0%–2% decline.

• Q4 gross margin was 23.0%, within the guided range of 22%–24%.