Industrial computer maker Ennoconn Corp (樺漢科技) yesterday said it expects first-quarter revenue to remain flat from NT$34.47 billion (US$1.08 billion) a year earlier, as geopolitical uncertainties, sharp fluctuations in memory supply and prices are likely to defer some orders to the second and third quarters.
The company’s operations are expected to normalize next quarter, driven by North America and artificial intelligence (AI) infrastructure demand, Ennoconn chairman Steve Chu (朱復銓) said at an earnings conference in Taipei.
Additional momentum is to come from cybersecurity, AI cloud-edge integration and US semiconductor fab projects, as the second-phase expansion of Taiwan Semiconductor Manufacturing Co’s (台積電) US fabs is expected to begin contributing revenue through Ennoconn’s 47 percent-held subsidiary, Marketech International Corp (帆宣), in the second half of the year, Chu said.
Photo: Huang Wei-chieh, Taipei Times
Ennoconn’s business is divided into three main segments: industrial Internet of Things, which accounted for 48 percent of total revenue last year; intelligent software and solutions (16 percent), and smart factory and facility management (36 percent).
Performance in the second half of the year is expected to outpace the first half, supported by a growing contribution from the intelligent software and solutions business, of which share rose to 16 percent last year from 12 percent in 2024, he said.
The intelligent software and solutions segment includes AI applications such as edge servers, agents and physical AI, and spans sectors from defense, transportation, retail to construction, he added.
Ennoconn recorded net profit of NT$3.21 billion last year, up 17.26 percent year-on-year and the second-highest on record, with earnings per share of NT$23.26. Full-year revenue was NT$142.29 billion, down 2.8 from a year earlier, company data showed.
Profit and revenue are expected to grow further this year, supported by strong and stable client demand, and more than NT$190 billion in orders, mainly driven by growth in the company’s intelligent software and solutions business, Chu said.
Orders from NCR Voyix Corp — a provider of retail, restaurant and digital commerce products— are expected to contribute about NT$12 billion in revenue this year, he said.
AI software, cloud-edge integration and increasing orders from North American clients are key to the company’s future growth, he said.
Ennoconn has about NT$20 billion in orders involving memory components, he said.
The company has secured supply in advance to ensure stable operations this year, he said.
To mitigate rising memory prices, the company has established cost pass-through mechanisms with clients, allowing price increases to be reflected in contracts or enabling customers to procure memory directly, Chu said.
Ennoconn has built a global supply chain network spanning the Americas, Europe and Asia, and has established a secondary operations hub in Singapore, allowing it to mitigate geopolitical and tariff-related risks, he added.
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