Issued date: 2023/04/28
Issued by: iST
iST (TWSE:3289) today (April 28, 2023) announced its financial statement of Q1 2023 on a consolidated basis.
1. Revenues in Q1 2023 totaled approximately NT$ 981 million, a decrease of 0.05% QoQ, and an increase of 12.18% YoY.
2. Gross profit in Q1 2023 was about NT$ 280 million, an increase of 19.82% QoQ, an increase of 16.07% YoY and the gross profit rate of Q1 2023 is 28.49%.
3. Net operating profit in Q1 2023 was about NT$ 104 million, an increase of 125.98% QoQ, and an increase of 23.14% YoY.
4. Net profit before tax in Q1 2023 was about NT$ 104 million, an increase of 7.29% QoQ, and an increase of 7.10% YoY.
5. The EPS before tax in Q1 2023 was approximately NT$1.68, which increased 20.86% QoQ, and an increase of 34.40 % YoY.
6. The net profit attributable to the parent company for the Q1 2023 was NT$0.98 billion, an increase of 2.62% QoQ and an increase of 19.85% YoY.
7. The EPS after tax for the Q1 2023 was approximately NT$1.31, an increase of 2.34% QoQ and an increase of 27.18% YoY.
iST said, driven by the major trends of advanced manufacturing processes, advanced packaging, automotive electronics, 5G, HPC, and AI-related applications, iST has remained unaffected by the sluggish market de-stocking. The demand for material analysis (MA), failure analysis (FA), and reliability verification (RA) remains strong, driving the company’s Q1 2023 consolidated revenue to reach a second highest record in history. The net profit attributable to the parent company for the Q1 2023 increased by 19.85% YoY, and EPS after tax reached NT$1.31.
In advanced manufacturing processes, material analysis (MA) is the most essential analysis project in the R&D phase. iST’s MA capabilities have reached the 2nm process node, and we have expanded our material analysis capacity by 40% to meet the significant demand for material analysis services in the market. We operate 24/7 to satisfy our clients’ rapid delivery requirements.
In addition, with the rise of AI brought by ChatGPT, international brand manufacturers have accelerated their self-developed chip research. Although the Although the production volume is not yet significant, the need for verification in the early stages of R&D has driven the analysis demand and boosted iST growth momentum.
In the field of automotive electronics, iST has observed that even though the consumer market has been sluggish recently, the automotive semiconductor market is still growing rapidly. From the financial reports of various international Tier 1 manufacturers for 2022, the sales of automotive chips and businesses have shown double-digit growth. Looking at the levels of autonomous driving, Level 1 and 2 currently use about 10 to 12 sensors, while Level 4/5 will use up to 40 sensors, and the higher the level, the more computing power is required for the chips. This will continue to drive the demand for automotive chips.
From 2002 to 2017, the number of chips used in each car has grown by about 1.5 times, while from 2017 to 2021, it has grown by 2 times. It is estimated that it will continue to grow in the next few years, and will not be affected by car sales. iST is a member of the Automotive Electronics Council (AEC) and are actively working with international automotive Tier 1 manufacturers to accelerate the development of electric vehicles and provide comprehensive R&D, verification, and analysis support for semiconductor design and manufacturing.
At the same time, in response to the G2 trend, iST has actively expanded its global layout from Taiwan to the world in the Q1 2023, to enhance international customer service, accelerate its operational pace, and strengthen the competitive advantages.
Looking to the future, the major trends in advanced processes, electric vehicles, the compound semiconductors, 5G, HPC, IoT, and AI-related applications will drive more enterprises to invest more R&D efforts in future technologies. iST will continue to work closely with international major customers to develop more solutions to support their verification and analysis needs.
iST’s 2023 Q1 consolidated results
(Unit: NT$ thousands, except EPS)
| Item | Q1 2023 |
Q1 2022 |
Increase (Decrease) % |
Q4 2022 |
Increase (Decrease) % |
|---|---|---|---|---|---|
| Operating revenue |
981,318 | 874,771 | 12.18% | 981,776 | -0.05% |
| Operating gross profit |
279,580 | 240,874 | 16.07% | 233,343 | 19.82% |
| Net operating profit | 104,426 | 84,800 | 23.14% | 46,210 | 125.98% |
| Net profit before tax |
104,399 | 97,104 | 7.10% | 96,932 | 7.29% |
| EPS before tax NT$ |
1.68 | 1.25 | 34.40% | 1.39 | 20.86% |
| The net profit attributable to the parent company | 97,956 | 81,732 | 19.85% | 95,455 | 2.62% |
| EPS after tax NT$ |
1.31 | 1.03 | 27.18% | 1.28 | 2.34% |
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.http://www.istgroup.com