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iST Q4 2017 Revenue Report

Home Press Releases iST Q4 2017 Revenue Report

iST Q4 2017 Revenue Report

by yuting

Issued date: 2018/01/19
Issued by: iST

iST (TWSE:3289) today (Jan 19, 2018) announced its self- clearing financial statement of Q4 2017 on a consolidated basis.

Revenues for Q4 2017 totaled NT$ 803 million, an increase of 14.11% QoQ and increased 37.15% YoY.

Gross profit in Q4 2017 was about NT$ 229 million, an increase of 7.08% QoQ and 47.94% YoY.

Gross profit rate of Q4 2017 is 28.55%, a slightly decrease from 30.43% of Q3 2017.

Profit after tax attributable to the parent company for Q4 was approximate NT$ 52 million, an increase of 59.85% QoQ and 152.69% YoY respectively.

EPS for Q4 was approximately NT$0.82, which has increased 57.69% QoQ and 121.62% YoY respectively. While EPS for 2017 whole year was approximately NT$3.03.

iST indicated, the revenue of Q4 has reached to a new high and increased 14.11% from the previous quarter, while the EPS also grew 57.69% due to iST’s new open two buildings in Hsinchu Science Park, which has shown the benefit of this expansion strategy has started to surface.

iST further pointed that the successful profit of Q4 2017 has resulted from several service items. First, the material analysis service has continued to drive iST’s revenues up, since the semiconductor makers’ effort on advance process have gained pace for the production from 14 nm, 10 nm to 7nm process, and many of them have even started to develop blueprints for the 5 nm process with the vision that it will be the next stage of the competition for semiconductor manufacturers.

Second, the reliability assurance and failure analysis services have got the international brands’ favor due to the extending capacity and the advanced of new buildings. Furthermore, the signal integrity service that iST has put effort for 3 year has also grown and spurred on the revenues of Q4 2017 by the continuous demand of cable signal test(HDMI, DP, USB), wireless signal test(MIMO) and the customized requirement of IoT verification.

Besides, the external investment of iST has been largely successful. DEKRA iST, the joint venture of iST, its revenues in 2017 has come at a record high since its establishment in 2015.

In view of the gross profit rate of Q4, iST explained, the reason why the gross profit rate of Q4 (28.55%) has slightly declined from Q3 (30.43%) and the cost of Q4 also became higher than Q3 were because the growing performance of the revenues of October and November in 2017 had yet to catch up with rising equipment depreciation cost and expanse from the expansion of the facility.

However, by December, with the growing demand from the big makers, the benefit of iST’s expansion strategy has started to surface.  The performance of revenues in December has surpassed the equipment depreciation cost and expanse from the expansion, which increased gross profit rate and net profit and started generating the revenues.

Based on the above-mentioned factors, iST expects a step-up revenues will be performed in Q2 2018 since the less working days of Q1 due to the Chinese New Year holiday.

iST(TWSE:3289) Q4 2017 Revenue Report on a consolidated basis.

(Unit: NT$ thousands, except EPS)

Item Q4
2017
Q4
2016
Increase
(Decrease)
%
Q3
2017
Increase
(Decrease)
%
Operating
revenue
 802,566 585,163  37.15%  703,306  14.11%
Operating
Gross margin
 229,150  154,891  47.94%  213,999    7.08%
Net operating profit and loss  38,135  (9,792)  489.45%  30,467  25.17%
Net profit
before tax
 47,051  18,376  156.05%  33,994   38.41%
Net profit after tax attributable to the parent company  52,135  20,632  152.69%  32,615    59.85%
EPS
(NT$)
 0.82  0.37  121.62%  0.52  57.69%

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 Automotive electronic verification platforms and high-speed signal transmission integrity services.
http://www.istgroup.com