Integrated Services Technology Inc (IST, 宜特科技), which provides semiconductor reliability testing, failure analysis and material analysis services, yesterday said that its net profit last quarter soared 65.39 percent annually, bucking a downtrend in the semiconductor industry.
The company expects the growth momentum to carry into the second half of this year, as leading global electronic companies continue to invest in developing generative artificial intelligence (AI) chips.
Chipmakers are also refocusing their research efforts into developing automotive chips, including display chips, ethernet chips and bluetooth chips, to diversify from chips used in consumer electronics, IST said.
Photo: Grace Hung, Taipei Times
The company remains optimistic, despite industry forecasts that the semiconductor inventory correction might extend into this quarter and smartphone demand remains in the doldrums, according to the statement.
Net profit rose to NT$151.27 million (US$4.87 million) during the quarter ending on June 30, compared with NT$91.47 million in the second quarter last year, marking its best second-quarter performance.
On a quarterly basis, net profit jumped 54.43 percent from NT$97.96 million.
Earnings per share (EPS) expanded to NT$2.02 last quarter from NT$1.22 a year earlier and from NT$1.31 a quarter earlier. Last quarter’s EPS was the best in about 13 quarters, it said.
The company attributed the robust growth to demand for material analysis, failure analysis, and reliability analysis for automotive and AI chips, IST said.
Growth in those areas helped offset weakness in demand for chips used in consumer electronics and excess inventory, it said.
Gross margin improved to 28.41 percent last quarter from 26.16 percent in the same period last year. On a quarterly basis, gross margin moderated slightly from 28.49 percent in the first quarter.
Revenue last quarter rose 6.81 percent year-on-year to NT$973.05 million from NT$910.98 million. That was a quarterly decline of 0.84 percent compared with NT$981.32 million.
About half of the company’s revenue came from offering reliability test services.
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