Sat, Oct 27, 2018 - Page 12 News List

Advantech profit rises 7% on industrial IoT demand

By Lisa Wang  /  Staff reporter

Advantech Co (研華), the world’s biggest industrial computer maker, yesterday said that its net profit last quarter rose about 7 percent from a year earlier, backed by robust growth in its Internet-of-Things (IoT) business.

Third-quarter net profit reached NT$1.71 billion (US$55.2 million), compared with NT$1.59 billion in the same period last year. That translated into earnings per share of NT$2.45, compared with NT$2.28 a year earlier, the company said in a statement.

Gross margin improved to 38.5 percent during the quarter ending Sept. 30.

Cumulative net profit in the first three quarters of the year expanded about 3 percent annually to NT$4.66 billion, translating to earnings per share of NT$6.68. Revenue climbed more than 11 percent annually to NT$35.46 billion from NT$31.93 billion, in line with the company’s goal of growing revenue by a double-digit percentage.

“As of the first three quarters, all our three business groups posted performances that were in line with the company’s expectations at the beginning of 2018,” Advantech chief executive officer Eric Chen (陳清熙) said in the statement.

Industrial IoT showed the strongest growth at 17 percent year-on-year in terms of revenue, Chen said.

Geographically, Europe and the US outperformed other regions, with revenue growing 24 percent and 16 percent respectively from a year earlier, Advantech said.

The company’s business in China, the biggest source of revenue, saw sales rise 14 percent annually last quarter, it said.

However, Advantech warned of a supply crunch of key components in the current quarter.

It did not specify which components might face a shortage.

In a separate statement, Advantech said that its board of directors had approved a plan to acquire 80 percent of Japan-based Omron Nohgata Co for ¥1.84 billion (US$16.4 million).

Omron Nohgata, a subsidiary of Omron Corp, focuses on developing robotics, factory automation, machinery tools and medical devices, the statement said.

The deal should help Advantech gain increase it share of Japan’s embedded-IoT market and deepen its partnership with Omron, the company said.

With an advanced manufacturing sector, the Japanese market has good growth potential, given growing demand for embedded systems and industrial IoT devices, Advantech said.

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