Sat, Jul 25, 2009 - Page 12 News List

Faraday’s Q2 net income hits US$8m

By Kevin Chen  /  STAFF REPORTER

Local chip designer Faraday Technology Corp (智原科技) said yesterday its net income reached NT$266 million (US$8.1 million), or NT$0.75 in earnings per share (EPS), in the second quarter of the year, on revenue of NT$1.38 billion.

The second-quarter profit was three-and-a-half times more than what the company reported in the first quarter, when it posted NT$59 million in profit, or NT$0.17 EPS.

Second-quarter revenue grew 48.4 percent from NT$928 million in the previous quarter, but gross margin fell to 42.7 percent from 46.7 percent in the first quarter, which Faraday said was due mainly to the adjustment of its application-specific integrated circuit (ASIC) product mix.

“In terms of geography, the revenue from European, US and Taiwanese markets registered the most noticeable growth rate compared with the first quarter,” Faraday said in a statement after an investors conference in Taipei.

The firm’s business covers low-margin ASIC design solutions in applications covering consumer, PC peripheral/storage, multimedia and display products as well as the provision of high-margin silicon intellectual property rights.

Faraday said it expects ASIC sales to continue to expand this quarter, although this would be a drag on the company’s growth in gross margin.

Faraday’s profit reached NT$325 million, or NT$0.92 per share, for the first half of the year.

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