Chroma Ate Inc (TPE:2360) Q3 2024 Earnings Call Highlights: Strong Revenue Growth and Strategic ...

In This Article:

  • Sales Revenue: NT$5.6 billion for Q3 2024, 2% QoQ growth, 16% YoY growth.

  • Testing Equipment Sales: NT$5.1 billion, 92% of total revenue, 12% YoY growth.

  • Automation Sales (MAS): NT$3.8 billion, 100% QoQ growth, 133% YoY growth.

  • Gross Margin: NT$3.3 billion, 59% of revenue, 20% YoY growth.

  • Operating Income: NT$1.5 billion, flat QoQ, 22% YoY growth.

  • Net Income: NT$1.4 billion, 26% of revenue, 1% QoQ growth, 16% YoY growth.

  • Earnings Per Share (EPS): NT$3.39 for Q3 2024.

  • First Nine Months Revenue: NT$15.5 billion, 14% YoY growth.

  • First Nine Months Gross Margin: NT$9.1 billion, 12% YoY growth.

  • First Nine Months Operating Income: NT$3.9 billion, 8% YoY growth.

  • First Nine Months Net Income: NT$3.8 billion, 18% YoY growth.

  • Return on Equity (ROE): 22%, up from 18% last year.

  • Inventory Turnover: Over six months.

  • Accounts Receivable Turnover: Approximately three months.

Release Date: October 31, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Chroma Ate Inc (TPE:2360) reported a 16% year-over-year growth in sales revenue for the third quarter, reaching NT$5.6 billion.

  • The company's automation sales saw a significant increase, with a 133% growth compared to the previous year.

  • Gross margin improved by 20% year-over-year, maintaining a strong 59% margin.

  • The semiconductor and photonics sectors showed robust performance, with a 70% increase compared to 2023.

  • Chroma Ate Inc (TPE:2360) has been qualified as the sole supplier for new capacity in metrology equipment, indicating strong customer trust and future growth potential.

Negative Points

  • The ATS sector experienced a decline, down 11% compared to last year and 22% for the first three quarters.

  • The power business is expected to decline further in the fourth quarter, following a 22% drop in the first three quarters.

  • Inventory levels have increased, which could indicate potential inefficiencies or slower sales in certain segments.

  • Long-term debt is accumulating due to capital expenses for factory expansion, which could impact financial flexibility.

  • The company faces challenges in the EV and ESS markets due to low capital expenditure sentiment, affecting growth in these areas.

Q & A Highlights

Q: Can you clarify if Chroma is involved in surface metrology for RDO and not inspection? A: Jennifer Chien, Director of Investor Relations, explained that metrology is not the same as inspection. Chroma focuses on metrology, specifically interposer alignments and TSV measurements, rather than inspection.