ASE Technology Holding Co (ASE, 日月光投控), the world’s biggest chip tester and packager, yesterday reported second-quarter earnings of NT$1.63 per share, the highest since the second quarter of 2018 thanks to strong contributions from its IC assembly, testing and materials (ICATM) business, as well as its electronics manufacturing services (EMS) business.
In the April-to-June quarter, net income reached NT$6.94 billion (US$235.2 million), up 78 percent quarter-on-quarter and 158 percent year-on-year, ASE said.
The results showed that the virus had a limited effect on the firm, as demand for its advanced technology stayed strong, boosting revenue and profitability beyond expectations.
Consolidated revenue grew 11 percent quarterly and 19 percent annually to NT$107.55 billion, while gross margin and operating margin climbed to 17.5 percent and 7.8 percent respectively, ASE said.
Its ICATM business contributed 62.6 percent of its second-quarter revenue, while the EMS business contributed 32.9 percent, ASE said.
In the first half of this year, total net income was NT$10.84 billion, up 129 percent from a year earlier, with earnings per share of NT$2.54, while revenue rose 14.09 percent to NT$204.91 billion, gross margin improved by 2.94 percentage points to 17.06 percent and operating margin increased 0.99 percentage points to 4.57 percent, the company said.
Given its current order visibility and foreign-exchange rate assumptions, ASE said that third-quarter revenue for the ICATM business would likely resemble second-quarter levels, while gross margin would resemble first-quarter levels.
Third-quarter revenue and gross margin for the EMS business would likely reach levels seen during last year’s third quarter, the company said in an earnings presentation.
Separately, handset chip designer MediaTek Inc (聯發科) yesterday said that its earnings per share last quarter hit the highest in eight quarters at NT$4.58, after net income grew 25.9 percent sequentially and 12.4 percent annually to NT$7.31 billion, according to the company’s earnings presentation.
The rise in second-quarter net income was mainly due to higher revenue and gross margin, the company said, adding that the sales contribution from new 5G smartphone launches and stronger demand for consumer electronics increased revenue 11.1 percent quarterly and 9.8 percent annually to NT$67.6 billion.
Its product mix helped its gross margin move up to 43.5 percent last quarter, up 0.4 percentage points sequentially and 1.6 percentage points year-on-year, it said.
For this quarter, MediaTek said that it expects revenue of between NT$82.5 billion and NT$87.9 billion at an estimated exchange rate of NT$29.20 to US$1, while gross margin might be 43 percent, with a potential change of plus or minus-1.5 percentage points.
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