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iST Q3 2015 Revenue Report

Home iST Q3 2015 Revenue Report

iST Q3 2015 Revenue Report

by ruby

Issued Date: 2015/10/15
Issued By: iST

iST (TWSE:3289) today (Oct 15, 2015) announced its self- clearing financial statement of Q3 2015 on a consolidated basis.

  1. Revenues for Q3 2015 totaled NT$ 547 million, an increase of 15.97% and 8.48% respectively, while compared to Q2 2015 and Q3 2014;
  2. Profit after tax attributable to the parent company in Q3 2015 was approximately NT$ 93 million, a decrease of 20.02% from Q2 2015 and 27.00% increase while compared to Q3 2014;
  3. While EPS for Q3 was approximately NT$2.01, a decrease of 20.24% from the previous quarter, and an increase of 25.63% compared to the same period in 2014;
  4. For the three quarters ended in September, 2015, the revenue of iST totaled NT$1.515 billion, which increased 9.83% YOY, while the profit after tax attributable to the parent company was approximately NT$258 million, an increase of 24.84% YOY; the EPS was NT$5.55, an increase of 23.06% YOY.

iST said, since July 2015, even though iST has established DEKRA iST with DEKRA and relinquished 15-20% share of iST’s revenue (only accounted 49% of profit in quarterly report), the total revenue of Q3 grew 15.97% to NT$ 547 million from Q2 and increased 8.48% compared to Q3 2014, a quarterly record high was reported.

Since the EPS of Q3 did not have a one-off business income of DEKRA iST as Q2’s, as a result, the EPS of Q3 decreased 20.24% from the previous month. However, the operating profit of original business was NT$ 73 million; gross margin also came to 37.49% while EPS was up to NT$ 2.01, which maintained in a relatively high level and has attained a great achievement.

The total EPS from Q1 to Q3 has come to NT$ 5.55, not only increased 23.06% YOY, but has run ahead of the total EPS of 2014 (NT$ 4.78), which has already set a historical high since iST went public in 2004 (the EPS in 2006 was NT$ 5.27).

iST pointed that, iST stands apart in the semiconductor industry while many are revising guidance down resulted from the closing of the international smart product projects, and the high demands of Material Analysis, Reliability Assurance and Failure Analysis.

iST further pointed that, the verification demand is growing fast especially in automotive electronics fields. In these areas, the required verification items and conditions are stricter than the consumer products, adding the cost of testing and has driven iST’s gross margin up.

For the outlook of Q4, coincided with China national holiday and the Xmas holiday for the big western brands, iST takes a cautiously optimistic view on the revenue in Q4.

As for the outlook of 2016, despite of the ups and downs expected in the verification market, with Taiwan’s IC design houses have been seeking a better way out to gradually transform products to automotive IC, medical electronics and IoT. The verification items of first two are various and stricter and the R&D projects of IoT are small quantity but greater in variety, which would push to drive iST long-term business growth. Hence, iST gives a buoyant outlook for 2016.

iST(TWSE:3289) Q3 2015 Revenue Report on a consolidated basis.

(Unit: NT$ thousands, except EPS)

Item Q3
2015
Q3
2014
Increase
(Decrease)
%
Q2
2015
Increase
(Decrease)
%
Operating
revenue
547,412 504,605 8.48% 472,032 15.97%
Operating
Gross margin
205,232 211,078 -2.77% 61,021 236.33%
Net operating profit and loss 73,055 98,470 -25.81% -158,544 146.08%
Net profit after tax attributable to the parent company 93,540 73,653 27.00% 116,953 -20.02%
EPS
(NT$)
2.01 1.6 25.63% 2.52 -20.24%

PS: Above figures are self- clearing statements, and has not approved by the accountant.

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 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.

On July 2015, iST and DEKRA built a joint venture, DEKRA iST to provide services including LED, PCB, PCBA, and system reliability verification, which could help to strengthen both parties’ capabilities of providing first-class testing and certification services in fields of automotive, LED and medical electronics.

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