Industrial computer maker Flytech Technology Co (飛捷科技) yesterday said it would continue to enhance its gross margin amid the impacts of the New Taiwan dollar’s appreciation and US tariffs.
The company would continue to boost operational resilience through artificial intelligence (AI) integration, in-house module development and high value-added products, Flytech chairman Lam Tai-seng (林大成) told reporters after its annual shareholders’ meeting in Taipei.
Flytech’s products mainly comprise smart point-of-sale systems, touch-panel PCs, mobile terminals, self-service kiosks, embedded computers and unified endpoint management software, the company’s Web site showed.
Photo: Fang Wei-chieh, Taipei Times
As Flytech exports products under free-on-board terms, the higher US tariffs would be borne by clients, who have not asked the company to absorb the costs, Lam said.
However, the higher tariffs could still affect some product prices and plans, he said.
Regarding the sharp appreciation of the NT dollar against the US currency, Lam said it is estimated to cut the company’s gross margin by 4.5 to 5 percentage points, given that about 40 percent of its products are priced in US dollars.
The exchange rate fluctuations are expected to affect the company’s sales performance, but it has made significant efforts in product design to help maintain its gross margin, he said.
First-quarter gross margin stood at 44.62 percent, up from 42.99 percent a year earlier, while revenue grew 34.31 percent year-on-year to NT$1.36 billion (US$45.4 million), company data showed.
The main driver of revenue growth was its customized services, Lam said, adding that the business outlook in the second half of the year would be better than the first half due to stable demand.
Asked about the company’s plans to build new plants, Lam said it would depend on how tariff policies develop.
Flytech has no plans to set up a facility in the US due to high costs and an incomplete supply chain, he said.
However, the company is assessing the possibility of setting up factories in Vietnam or Thailand as it aims to diversify risks and meet demand from regional clients, he added.
North and South America accounted for 52 percent of Flytech’s revenue last year, followed by 38 percent from Europe, the Middle East and Africa, and 10 percent from the Asia-Pacific region.
Shareholders yesterday approved the company’s proposal to distribute a cash dividend of NT$6 per share, the highest since 2017.
Revenue last year grew 32.04 percent year-on-year to NT$4.61 billion, and net profit reached NT$958.76 million, up 102.82 percent year-on-year. Earnings per share were NT$6.93.
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