Home iST 2019 Annual Revenue Report, Cash Dividend NT$2

iST 2019 Annual Revenue Report, Cash Dividend NT$2

Home iST 2019 Annual Revenue Report, Cash Dividend NT$2

iST 2019 Annual Revenue Report, Cash Dividend NT$2

by yuting

Issued date: 2020/03/25
Issued by: iST

iST (TWSE:3289) today (March 25, 2020) announced its financial statement of 2019 on a consolidated basis.

Revenues for 2019 totaled approximately NT$ 2.52 billion, an increase of 13.94% YoY.

Gross profit in 2019 was about NT$ 402 million, an increase of 32.29% YoY.

Net operating loss in 2019 was NT$ 211 million, which has reduced loss of 25.15% compared with the same period last year.

Net loss before tax in 2019 was NT$ 228 million, which has reduced loss of 23.17% compared with the same period last year.

Net profit attributable to parent company after tax for 2019 was approximate NT$ 77 million, which has turned a loss into a profit compared with the same period last year.

EPS for 2019 was approximately NT$1.10, which has turned a loss into a profit compared with the same period last year. The board of directors has decided today to pay a cash dividend of NT$2.

iST said, in 2019, it has made an adjustment on its structural health and overall operation both internally and externally. In term of finance, the current ratio has been raised from 83% in 2018 to 100% in 2019, and the solvency has improved significantly. The debt ratio has also fallen from 68% in 2018 to 53% in 2019, with a significantly improved financial structure.

In addition, iST has also made a great adjustment on its operation, including its main business, verification and analysis services, as well as the future strategy for its wafer backend process, and reorganization of its subsidiary, ITS. On top of that, iST has transferred its operating strategy of Mainland China market in order to be closer to the needs of customers, and move toward in the direction of higher gross margin operation, the above are all the energies of iST’s growth and transformation.

iST further pointed that, from the fourth quarter of 2019 to even now, the current phase of “de-Americanization” offers a positive growth outlook for the Taiwanese IC design houses. In particular, many new chip procurement cases have significantly reduced the proportion of the U.S. based supply chains, or even dropped to zero at a stretch. As an alternative solution, the number of R&D open cases of IC design houses in Taiwan has been increased and this has been the driving force of iST’s verification and analysis business, which resulted in an increase of iST’s revenues.

Look into the future, the “Advanced process”, “Advanced packaging” and the”5G” will be the three growth momentums for iST. It’s worth mentioning that although there has been no slowdown of the COVID-19 pandemic, as China accelerates its push for 5G to regain its footing, the Taiwanese IC design houses also speed up their research and development for the peripheral products of 5G. As long as there is research and development requirement, verification is needed to ensure the quality, thus, the visibility on iST’s current orders is expected through the end of second quarter.

iST’s 2019  Consolidated Revenue Results

(Unit: NT$ thousands, except EPS)

Item 2019 2018 Increase
 2,519,925  2,211,612 13.94%
Gross margin
 402,377  304,156 32.29%
Net operating profit and (loss) (211,114) (282,065) 25.15%
Net profit and (loss)
before tax
 (228,314)  (297,171)   23.17%
Net profit and (loss) after tax attributable to the parent company  76,927  (189,798)  140.53%
EPS and

(negative EPS)

 1.10 (2.99) 136.79%
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, signal integrity testing services and wafer backend process integrated services.