iST H1 2014 Revenue Report

iST (TWSE:3289) today (July 14, 2014) announced its self- clearing financial statement of H1 2014 on a consolidated basis.

1. Revenues for January through June 2014 totaled NT$874 million, an increase of 11.66% compared to the same period in 2013;
2. Net income after tax in H1 2014 was approximately NT$ 142 million, an increase of 400.33% from the H1 2013;
3. While EPS for H1 was NT$2.91, a 273% increase from H1 2013;
4. Revenues for Q2 were approximately NT$472 million, quarter-over- quarter, Q2 revenue increased 17.38% and an 8.11% increase compared to Q2 2013;
5. Q2 net income after tax was approximately NT$ 87 million, a 61.36% increase from the last quarter, and a sharp increase of 131.98% from the Q2 2013;
6. While EPS for Q2 was approximately NT$1.66, an 32.80% increase from the last quarter, and an obviously increase of 115.58% compared to the same period in 2013;
7. Revenues, net income and EPS for Q2 all set a new quarter record ever.

iST’s CFO and spokesperson, Selina Lin said, the great performance of revenue and net income in Q2 resulted from not only the strong electronic industry R&D demands, but the strategic preparation since the beginning of 2014. After adjustment of the company constitution, the resource in iST can be integrated in both China and Taiwan, which signifies synergy of the high profitable service, such as Automotive Electronic verification, smart hand-held/ wearable products and LED analysis. Over and about, this synergy also makes the cost control better. Besides, iTS (Innovative turnkey solution), the subsidiary of iST, revenue for Q2 has broken the monthly record, which pushes the iSTgroup’s revenue and EPS forward to the history highest point.

Outlook on the China market in the late half of 2014, the Chinese government released a schema for National Semiconductor industry development in the end of June to rise up the self-sufficiency rate of semiconductor market. The schema included tax benefit and stock equity funds to further strengthen China- owned semiconductor industry, including the leading semiconductor company, such as SMI (Semiconductor Manufacturing International Corporation), Hisilicon, Spreadtrum and the top 10 IC design houses. Revenue for iST may be driven by this strong growing trend of IC design, as iST is the number one lab among the field no matter in technology, equipment or the locations arranged in China.

For the automotive electronics verification, iST has been approved by Tier 1 branding vehicle companies, which driven from downstream to the upstream suppliers to perform the reliability test on products. In the late half in 2014, iST hopes to extend the strategic target to the branding OEM to continue the brilliant performance of H1.

Look to further strong increase on the demand of material analysis and the compatibility signal test driven by the rapid development of advanced process and 4K television objects. In the first half of 2014, iST has completed the preparation of equipment and human resource and has more confidence at the revenues in H2 2014 contributed by this two services.

Given all that, iST is optimistic at the future sales in the second half of 2014.

About Integrated Service Technology

Founded in 1994, iST began its business from IC circuit debugging and modification and gradually expanded its scope of operations to include failure analysis,reliability verification, material analysis, and quality assurance. Through the years, iST has constructed a comprehensive verification and analysis engineering platform, offering full-scope services to the IC engineering industry. iST customers cover the whole spectrum of the electronics industry from IC design to end products.

In response to rising environmental awareness, iST not only focuses on its core services but is also expanding its service offerings based on international trends. iST’s lead-free and halogen-free verification testing, chemical quantitative testing and signal integrity services have all been accredited by multiple international independent third-party organizations including TUV NORD Germany and BSI UK. With increased outsourcing by major international brands, iST now also plays the role of independent quality testing laboratory for OBM outsourcing products and is certified by Dell, Cisco, Delphi, Continental Automotive and Lenovo.

Headquartered in Hsinchu, iST’s pursuit of precision, perfection and efficiency has led it to expand its operations around the world. The iST Group now includes iST Kunshan, iST Shanghai, iST Beijing and iST Shenzhen in China, IC Service in Japan, and an iST laboratory in the US. These are all dedicated to providing customers with prompt, reliable and high-quality technical services in order to grow with the leaders of the world. For more information, please visit the iST website at: www.istgroup.com