iST Q1 2015 Revenue Report

iST (TWSE:3289) today (Apr 17, 2015) announced its self- clearing financial statement of Q1 2015 on a consolidated basis.

1. Revenues for Q1 2015 totaled NT$ 495 million, an increase of 6.79% and 23.1% respectively, while compared to Q4 2014 and the same period in 2014;
2. Pretax profit in Q1 2015 was approximately NT$ 54 million, a sharp increase of 3012.76% from Q4 2014 and a slight decrease of 6.04% while compared to Q1 2014;
3. While Pretax EPS for Q1 was approximately NT$1.22, an increase of 306.67% from the last quarter, and an slight decrease of 3.94% compared to the same period in 2014;

iST said, the decrease of the pretax profit compared to Q1 2014 resulted from three reasons, first of all, to cope with the blooming demands from the customers, iST purchased a number of equipment and recognized higher depreciation since Q4 2014; second, iST increased 20% of the human resource cost to response the growing orders; finally, it’s the cost of the preparation for the new business, which is not yet profitable.

Nevertheless, the capacity expansion has reflected on the revenue performance, which increased 6.79% comparing to Q4 2014, while the pretax EPS rebounded to NT$ 1.22, which also implied the simmering of iST’s strategic arrangement since Q4 2014.

In iST HQ Taiwan, besides the existing capacity of Reliability test and Failure analysis maintained in a high level; the capacity utilization rate of Material Analysis that iST has marched formally in 2014 keeps heating up, and the order enlarged continuously.

Meanwhile, the rapid growing test demands of the automotive electronics and the IoV (Internet of Vehicle) due to the consumer electronics manufacturers in Taiwan moved on toward the automotive electronic IC. On top of that, the subsidiary of iST, ITS (Innovative Turnkey Solution Corporation) has constantly received major purchases, getting step by step higher, which contributed iST’s sales in a high record.

In addition, the sales of subsidiaries of iST in China were driven up on account of the great support by the China government for the IC industry, as well as the test demands of the upper-stream auto supply chain after iST certificated by the brand automakers in 2014.

A look ahead to the iST’s Q2, as the IoT (Internet of things) and the hand-held/ wearable products keep catching on, the brand companies continually to develop new products and the test demands of reliability driven by the Taiwan IC/ LED manufacturers in shifting to the automotive electronic market. iST keeps expanding the capacity to cope with this strong test requirement and optimistic at the revenues in Q2.

About Integrated Service Technology

Founded in 1994, iST began its business from IC circuit debugging and modification and gradually expanded its scope of operations, including failure analysis, reliability verification, material analysis and so on. iST has offered full-scope verification and analysis services to the IC engineering industry, its customers cover the whole spectrum of the electronics industry from IC design to end products.

In response to rising Cloud Intelligence, Internet of Things (IoT) and Internet of Vehicles (IoV), iST not only focuses on its core services but is also expanding its service offerings based on international trends, such as LED and Automotive electronic verification platforms and high-speed signal transmission integrity services.

iST’s pursuit of precision, perfection and efficiency, which has been accredited by multiple international well-known and credible organizations including IEC/IECQ, TAF, TUV NORD, BSI and CNAS. With increased outsourcing by major international brands, iST also plays the role of independent quality testing laboratory for OBM outsourcing products and association and is certified by TI, Lenovo, Dell, Cisco, Delphi, Continental Automotive, ISTA, HDMI, etc.

Headquartered in Hsinchu, iST has led it to expand its operations around the world. The iST Group now includes iST Kunshan, iST Shanghai, iST Beijing, iST Shenzhen, iST Wuhan and iST Chengdu 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