iST Q4 2015 Revenue Report

iST (TWSE:3289) today (Jan 14, 2016) announced its self- clearing financial statement of Q4 2015 on a consolidated basis.

1. Revenues for Q4 2015 totaled NT$ 505 million, a decrease of 7.71% and an increase of 8.94% respectively, while compared to Q3 2015 and Q4 2014;
2. Gross profit for Q4 2015 was NT$ 178 million, a 12.69% drop compared to Q3 2015, and 36.42% growth compared to Q4 2014;
3. Profit after tax attributable to the parent company in Q4 2015 was approximately NT$ 67 million, a decrease of 27.73% from Q3 2015 and a sharp increase of 438.46% while compared to Q4 2014;
4. While EPS for Q4 was approximately NT$1.45, a decrease of 27.86% from the previous quarter, and an increase of 417.86% compared to the same period in 2014;

For 2015, the revenue of iST totaled NT$2.02 billion, which increased 9.61% YOY, while the profit after tax attributable to the parent company was approximately NT$325 million, an increase of 48.56% YOY; the EPS was NT$7, an increase of 46.48% YOY. Whether revenues, after-tax profit, after-tax EPS were all set a record high.

iST said, since the drastically reduced working days in Q4 2015 coincided with China 11 National holiday, Christmas and New Year holiday, the EPS of iST in Q4 2015 declined 27.86% compared to Q3 2015. However, the sales performance of iST was back on the road to growth in advance due to the growing testing demands in December. Compared to Q4 2014, the revenues of Q4 2015 increased 8.94%, profit after tax attributable to the parent company sharply increased 438.46%, gross margin rate maintained in 35.21%, EPS reached to NT$7, which has attained a great achievement despite of the off season.

2015 is a rewarding year of iST, EPS reached up to NT$7, which hit a historical high. Look back to year 2015, even though many Taiwan’s semiconductor enterprises have faced internal and external problems, the external changings included threaten of China Red Supplier Chain and the ascendant acquisition; the internal problems included the development of consumer electronic products has been getting in the dumps with poor performance expected.

Nevertheless, iST got instant results from its strategic arrangement, not only attained the testing orders of international branding companies for smart products but the flourishing requirement of the material analysis, failure analysis and reliability verification. Thus, the revenue and profit of 2015 were both set a record high.

For the outlook of 2016, facing “the Power of China’s Red Tech Revolution”, iST has been not only won a place in the China semiconductor verification field since it stepped in China’s market more than a decade ago but is planning to expand widely in semiconductor industry clusters in China. As for the automotive verification aspect, iST has built a joint venture name “Dekra iST Reliability Services Inc. ”with DEKRA, the biggest world’s leading expert organization in vehicle safety testing and inspections, which has contributed profit to iST’s revenues in the second half year of 2015. In 2016, iST expected can tap into the branding automotive market deeply through the greater cooperation benefits with DEKRA.

In addition, since the R&D projects of IoT are small quantity but greater in variety. In 2016, iST launched its over-the-air (OTA) wireless signal testing lab in Neihu, Taipei which recently certified by TAF (Taiwan Accreditation Foundation) specific to the quality management system certification of ISO17025. Meanwhile, iST also got approval for being one of the CTIA Authorized Test Labs from CTIA (Cellular Telephone Industries Association), the OTA standards setup institution. iST is now qualified to offer customers the OTA test, debug and certification services. Hence, iST gives a buoyant outlook for 2016.

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; Japan; 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