Sat, Aug 10, 2019 - Page 12 News List

Wistron ITS posts record-high profits

SOFT POWER:The information technology consulting and outsourcing services provider saw first-half profits nearly double, thanks to growth at home and abroad

By Natasha Li  /  Staff reporter

Wistron Information Technology & Services Corp (Wistron ITS, 緯創軟體), a subsidiary of contract electronics manufacturer Wistron Corp (緯創), last quarter posted record-high profits of NT$143.09 million (US$4.56 million), or earnings per share of NT$2.37.

The company, which provides information technology consulting and outsourcing services to companies including IBM Corp and Apple Inc, saw its cumulative revenue surge 51.99 percent year-on-year to NT$2.69 billion in the first six months, thanks to growth in sales at home, and in China, Hong Kong, Japan and the US.

Net profit soared 97.8 percent to NT$225.51 million, translating into earnings per share of NT$3.74.

The company also reported record-high revenues for the fifth consecutive month, with sales last month amounting to NT$476.72 million, up 40.96 percent from a year earlier.

Wistron ITS chairman and chief executive officer Ching Hsiao (蕭清志) said at an annual shareholders’ meeting on June 24 that the company has mostly been unaffected by the trade dispute between the US and China.

The US taxes have hit hardware, but left software intact, Chinese-language news site quoted Ching as saying.

However, as the trade dispute lingers, the company retains a cautiously optimistic outlook for the second half of the year, Hsiao said at the time.

The company recently relocated its headquarters from Taipei’s Neihu District (內湖) to New Taipei City’s Sijhih District (汐止).

It has also set up new headquarters in Wuhan to handle its growing business in China, which contributed about 54 percent to overall revenue last year.

Sales in Taiwan and Hong Kong accounted for another 25 percent, while sales in Japan contributed 17 percent, company data showed.

Other areas, including the US and Europe, made up the remaining 4 percent.

The information technology and Internet sector is the company’s largest source of revenue, accounting for 43 percent of the total last year.

The financial sector ranked second at 25 percent.

Telecommunications and manufacturing accounted for 15 percent and 10 percent respectively.

Shareholders have approved a proposal to distribute a cash dividend of NT$1.69 per share, representing a payout ratio of 32.38 percent, based on last year’s earnings per share of NT$5.22.

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