BizLink Holding Inc’s (貿聯控股) second-quarter profit surged from a year earlier and the previous quarter as sales hit a record high driven by demand for factory automation, capital equipment, high-performance computing and electric vehicles, the interconnect solutions provider said in a statement on Friday.
Net income last quarter grew 112.72 percent year-on-year and 109.58 percent quarter-on-quarter to NT$1.17 billion (US$38.72 million), or earnings per share (EPS) of NT$7.68, BizLink said.
Consolidated revenue in the April-to-June period rose 99.02 percent annually and 19.68 percent quarterly to NT$13.96 billion, while gross margin and operating margin rose to 25.97 percent and 11.7 percent respectively, it said.
Photo courtesy of BizLink Holding Inc
“The COVID-19 lockdown in China affected our site in Kunshan, which was down for about three weeks in April, and impacted sales in the information technology, data communications and automotive segments, but we ramped up production in May and June to compensate for this situation,” BizLink chief executive officer Felix Teng (鄧劍華) said in a conference call.
“The market has presented even more challenges in the past few months, from inflationary and recessionary fears to rising energy prices. However, BizLink’s ability to address customer needs quickly was key to our performance in the second quarter,” Teng said.
If a steep drop in copper prices beginning in June continues, it would affect BizLink’s electrical appliance business and its new German business unit INBG in the second half of this year, he said.
BizLink completed the acquisition of industrial solutions unit INBG from Leoni AG in January, he said, adding that the unit cannot meet all customer demand due to limited capacity and persistent supply chain issues.
Silicon Valley-headquartered BizLink, the sole supplier of wiring harnesses for battery management systems in Tesla Inc’s electric vehicles, said sales generated by its industrial applications segment accounted for 38 percent of total sales last quarter, followed by the information technology and data communications business’ 26 percent, the automotive segment’s 21 percent and the electrical appliances segment’s 14 percent, while 1 percent came from other segmants, including telecom equipment and medical devices.
The industrial applications segment continued to see rising orders from the company’s four major capital equipment customers last quarter, Teng said, adding that it had not seen order cuts or postponements in the past quarter.
The information technology and data communications segment’s contribution to overall sales grew last quarter on the back of continued orders for high-performance computing components, which might surpass the contribution of docking stations toward the end of this year, the firm added.
Teng said electric vehicle orders fell sequentially last quarter due to the lockdowns in China in April.
However, the situation has fully recovered since then, and the company continued to ramp up production at its US and Mexican sites, he said.
As for the electrical appliances business, customer forecasts had been adjusted downward given the ongoing Russia-Ukraine war, Teng said, adding that new projects remain in the pipeline albeit developing at a slower pace than before.
In the first half of the year, net income was NT$1.73 billion, up 101 percent from a year earlier, or EPS of NT$11.46, while revenue rose 94.9 percent to NT$25.63 billion, BizLink said.
“As we look into the second half of the year, we are watchful of constant changes in the macroenvironment and are taking action to reduce their impacts, but realize that some are beyond our control,” Teng said.
BizLink would invest strategically to grow its business scale and gradually shift its focus to higher-margin, more value-added projects, he said, adding that it is planning to be more selective in terms of customers.
Vincent Wei led fellow Singaporean farmers around an empty Malaysian plot, laying out plans for a greenhouse and rows of leafy vegetables. What he pitched was not just space for crops, but a lifeline for growers struggling to make ends meet in a city-state with high prices and little vacant land. The future agriculture hub is part of a joint special economic zone launched last year by the two neighbors, expected to cost US$123 million and produce 10,000 tonnes of fresh produce annually. It is attracting Singaporean farmers with promises of cheaper land, labor and energy just over the border.
US actor Matthew McConaughey has filed recordings of his image and voice with US patent authorities to protect them from unauthorized usage by artificial intelligence (AI) platforms, a representative said earlier this week. Several video clips and audio recordings were registered by the commercial arm of the Just Keep Livin’ Foundation, a non-profit created by the Oscar-winning actor and his wife, Camila, according to the US Patent and Trademark Office database. Many artists are increasingly concerned about the uncontrolled use of their image via generative AI since the rollout of ChatGPT and other AI-powered tools. Several US states have adopted
KEEPING UP: The acquisition of a cleanroom in Taiwan would enable Micron to increase production in a market where demand continues to outpace supply, a Micron official said Micron Technology Inc has signed a letter of intent to buy a fabrication site in Taiwan from Powerchip Semiconductor Manufacturing Corp (力積電) for US$1.8 billion to expand its production of memory chips. Micron would take control of the P5 site in Miaoli County’s Tongluo Township (銅鑼) and plans to ramp up DRAM production in phases after the transaction closes in the second quarter, the company said in a statement on Saturday. The acquisition includes an existing 12 inch fab cleanroom of 27,871m2 and would further position Micron to address growing global demand for memory solutions, the company said. Micron expects the transaction to
A proposed billionaires’ tax in California has ignited a political uproar in Silicon Valley, with tech titans threatening to leave the state while California Governor Gavin Newsom of the Democratic Party maneuvers to defeat a levy that he fears would lead to an exodus of wealth. A technology mecca, California has more billionaires than any other US state — a few hundred, by some estimates. About half its personal income tax revenue, a financial backbone in the nearly US$350 billion budget, comes from the top 1 percent of earners. A large healthcare union is attempting to place a proposal before
RSS