Cloud computing equipment supplier Wiwynn Corp (緯穎科技) yesterday said that its net profit in the first quarter surged 108.05 percent year-on-year to NT$9.79 billion (US$323.1 million), a record high.
Earnings per share were NT$52.7, nearly doubling from NT$26.92 a year earlier, Wiwynn said.
The results came as the company’s revenue in the first quarter increased 145.1 percent year-on-year to NT$170.66 billion, its highest ever, while gross margin fell 2.4 percentage points to 8.7 percent and operating margin declined 1.4 percentage points to 7 percent from a year earlier.
Photo courtesy of Wiwynn Corp
First-quarter revenue was better than expected, as demand for general and artificial intelligence (AI) servers continued to grow, Wiwynn said.
Wiwynn said it remains positive about long-term data center demand and that it would continue investing in the AI, computing and heat dissipation sectors to develop new technologies and products.
The company is to showcase its products and latest innovations at the Computex expo from May 20 to 23, it said.
Wiwynn also announced the appointment of company president William Lin (林威遠) as CEO, as the company continues in its efforts to adjust its global supply chains, strengthen regional production resilience and adopt smart manufacturing, Wiwynn said.
Amid US tariff uncertainty, Wiwynn chairwoman Emily Hong (洪麗甯) on Tuesday said the company’s board of directors approved a plan set up a new plant near the US-Mexico border in Texas.
While the company’s Mexican plant has served its US clients for more than a decade, uncertainty over trade and exchange rates has made expanding US capacity necessary, Hong said, adding that high labor costs there have made further automation inevitable.
The US dollar was trading at NT$29.7 at 10am today on the Taipei Foreign Exchange, as the New Taiwan dollar gained NT$1.364 from the previous close last week. The NT dollar continued to rise today, after surging 3.07 percent on Friday. After opening at NT$30.91, the NT dollar gained more than NT$1 in just 15 minutes, briefly passing the NT$30 mark. Before the US Department of the Treasury's semi-annual currency report came out, expectations that the NT dollar would keep rising were already building. The NT dollar on Friday closed at NT$31.064, up by NT$0.953 — a 3.07 percent single-day gain. Today,
‘SHORT TERM’: The local currency would likely remain strong in the near term, driven by anticipated US trade pressure, capital inflows and expectations of a US Fed rate cut The US dollar is expected to fall below NT$30 in the near term, as traders anticipate increased pressure from Washington for Taiwan to allow the New Taiwan dollar to appreciate, Cathay United Bank (國泰世華銀行) chief economist Lin Chi-chao (林啟超) said. Following a sharp drop in the greenback against the NT dollar on Friday, Lin told the Central News Agency that the local currency is likely to remain strong in the short term, driven in part by market psychology surrounding anticipated US policy pressure. On Friday, the US dollar fell NT$0.953, or 3.07 percent, closing at NT$31.064 — its lowest level since Jan.
The New Taiwan dollar and Taiwanese stocks surged on signs that trade tensions between the world’s top two economies might start easing and as US tech earnings boosted the outlook of the nation’s semiconductor exports. The NT dollar strengthened as much as 3.8 percent versus the US dollar to 30.815, the biggest intraday gain since January 2011, closing at NT$31.064. The benchmark TAIEX jumped 2.73 percent to outperform the region’s equity gauges. Outlook for global trade improved after China said it is assessing possible trade talks with the US, providing a boost for the nation’s currency and shares. As the NT dollar
The Financial Supervisory Commission (FSC) yesterday met with some of the nation’s largest insurance companies as a skyrocketing New Taiwan dollar piles pressure on their hundreds of billions of dollars in US bond investments. The commission has asked some life insurance firms, among the biggest Asian holders of US debt, to discuss how the rapidly strengthening NT dollar has impacted their operations, people familiar with the matter said. The meeting took place as the NT dollar jumped as much as 5 percent yesterday, its biggest intraday gain in more than three decades. The local currency surged as exporters rushed to