Power supply and electronic components maker Delta Electronics Co (台達電) yesterday said that revenue this quarter would be higher than last quarter, partly due to fewer working days.
The company’s operations in the first half of the year are also expected to be better than the same period last year, on the back of rising sales of artificial intelligence (AI) related power supplies and electronic components, continued sales growth in power components for automotive electronics, and improvement in power solutions for automation and infrastructure businesses, it said.
Thanks to the production of heat dissipation parts for AI servers powered by Nvidia Corp’s GB200 chips in the second half of the year, coupled with the rising contribution of AI power supplies to total sales, Delta’s overall operations in the second half of the year would be stronger, it added.
Photo: Fang Wei-chieh, Taipei Times
Delta saw AI power supply revenue account for 4 to 5 percent of its total revenue in the first quarter, compared with 3 percent last year, the Chinese-language Liberty Times (the Taipei Times’ sister newspaper) reported on its Web site yesterday, citing Delta chief executive officer Cheng Ping (鄭平).
The company has made progress in the heat dissipation field for AI servers and plans to begin small volume production of some of the new products in the second half of the year, before starting mass production next year, Cheng said.
Delta products include power systems for information technology, automotive devices, telecommunications, industrial applications and medical items.
The rising adoption of electric vehicles (EVs) — led by the clean energy trend — has boosted Delta’s EV power products in the past few years and is likely to continue to support the firm’s growth momentum in the long term, although the growth is tapering off, Cheng said.
However, the company still maintains the view that the EV market would grow by 20 to 30 percent throughout the year, the Liberty Times reported, citing Delta chairman Yancey Hai (海英俊).
Delta on Tuesday posted its lowest profit last quarter in four years, attributing the weakness to higher operating expenses, which accounted for 21.4 percent of total sales in the quarter, compared with 18.5 percent a year earlier.
Earnings per share in the three-month period to March fell to NT$2.22, down 16.54 percent year-on-year and the lowest since the first quarter of 2020, when the number was NT$0.8, the company said in a report.
First-quarter revenue was NT$91.297 billion (US$2.81 billion), down 1.67 percent year-on-year, below market expectations due to lower shipments of power products for consumer electronics, industrial automation and infrastructure projects, it said.
Gross margin was 29.5 percent in the first quarter, up from 27.5 percent a year earlier, but operating margin fell by 0.95 percentage points to 8.1 percent due to higher research-and-development fees as well as selling and administrative expenses, the company said.
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