iST Q1 2017 Revenue Report

iST (TWSE:3289) today (Apr 17, 2017) announced its self- clearing financial statement of Q1 2017 on a consolidated basis.

1. Revenues for Q1 2017 totaled NT$ 600 million, an increase of 2.57% QoQ and increased 7.91% YoY.
2. Gross profit in Q1 2017 was about NT$ 168 million, an increase of 8.33% QoQ and a decrease of 10.57% YoY; Gross profit rate of Q1 2017 is 27.96%.
3. Profit after tax attributable to the parent company for Q1 was approximate NT$ 33 million, an increase of 61.78% QoQ, and a decrease of 58.67% YoY.
4. While EPS for Q1 was approximately NT$0.55, an increase of 48.65% QoQ, and a decrease of 65.84% YoY.

As the result of the less working days coincided with the Chinese New Year holiday, the success of iST’s cross-strait expansion in 2016 had not appeared yet in January and February, which means the revenues in the first two months had yet to catch up with the rising costs and expense of the increased production, and thus affected the performance of gross profit and net profit, iST explains.

However by March, the success of iST’s cross-strait expansion has started to surface. As the number of cases required by the semiconductor customers soar after Chinese New Year, the revenues in March has hit a record high and the increasing sales has surpassed the rising costs and expense of the increased production, so that the gross and net profit has return to normal and has pumped into the March revenues.

At the present stage, the revenues and substantial profits are expected to increase continually due to the strong testing demand of smart phone, IoT, automotive electronics product in reliability test, material analysis, failure analysis and signal integrity test.

iST further explains the latest signal integrity testof the next-gen smart hand-held device.

As of April 1, 2017, CTIA (Cellular Telephone Industries Association) LTE MIMO OTA test plan for MIMO downlink version 1.1 has become mandatory for certification testing, which means the manufacturers who intend to obtain the CTIA certification will need to conduct MIMO OTA test in a third-party lab.

iST is the first batch of CTIA authorized MIMO OTA Lab and capable of assisting domestic terminal manufacturers and telecomm operators in testing and verifying data transmission performance of MIMO mobile terminal devices and obtain the certification. The latest decision made by CTIA mentioned in the above paragraph is profitable to iST. So far, iST has received many inquiries from the customers, which can expect to drive revenue henceforward.

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 Automotive electronic verification platforms and signal integrity testing services.
http://www.istgroup.com