FocalTech Systems Co (敦泰電子) yesterday posted a record NT$6.11 billion (US$219.12 million) in net profit for last year, attributing it to price increases.
The supplier of drivers and touch display driver ICs used in flat panels said in a filing with the Taiwan Stock Exchange that last year’s net profit was three times the company’s stock value of NT$2.16 billion.
Benefitting from robust demand, earnings per share were NT$30.23 last year, FocalTech said.
Last year’s strong showing compared with its 2020 net profit of NT$1.01 billion, with earnings per share of NT$3.97, it said.
Gross margin soared to 48.79 percent last year, from 24.86 percent the previous year, while consolidated revenue soared 59.35 percent to NT$21.99 billion from NT$13.8 billion in 2020, the Hsinchu-based chipmaker said.
In a separate filing, FocalTech said that its board of directors has approved a share buyback program, as it is planning to reward employees by repurchasing their shares.
The company would repurchase 4 million shares, accounting for 1.85 percent of its total shares, at NT$103 to NT$231, it said, adding that it is seeking to complete the program by April 23.
The company is to publish detailed financial figures and reveal its business outlook for the current quarter at an investors’ conference today, it said.
Three months ago, FocalTech said that some of its products were affected by severe shortages, although smartphone sales would curtail demand for its chips.
After several quarters of price increases, FocalTech said the uptrend would be coming to an end.
However, manufacturing costs would continue to rise due to constant increases of foundry prices, adding pressure to its gross margin, the company said.
FocalTech is diversifying its product lineup to minimize risks, it said, adding that it expects to ship its first drivers and touch display driver ICs used in vehicle AMOLED displays this year.
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