Faraday Reports Second Quarter 2022 Results

Hsinchu, Taiwan -- July 26, 2022-- Faraday Technology Corporation (“Faraday” or the “Company”) (TWSE: 3035), a leading fabless ASIC service and silicon IP provider, today announced its consolidated financial results for the second quarter of 2022. Second quarter consolidated revenue was NT$3,365 million, up by 5% QoQ and 99% YoY, with gross margin of 49.3%. Net income attributed to stockholders of the parent was NT$661 million, with a basic EPS of NT$2.66.

Looking back to the second quarter, the Company’s business continued to grow, with record revenue and operating income. Revenue grew by 5% QoQ and 99% YoY to NT$3,365 million, reaching a sequential new high. Operating income continued to rise by 12% QoQ and 274% YoY to NT$825 million while operating margin increased significantly by 11 percentage points from the same period last year to 24.5%, showing growth for the sixth consecutive quarter. Net income attributed to stockholders of the parent was NT$661 million, down 1% QoQ and up 266% YoY, with an EPS of NT$2.66, hitting the second-highest in the history. In terms of product mix, NRE and mass production reached quarterly highs while IP hitting the second best quarterly record in the Company’s history. IP sales grew 9% QoQ and 22% YoY to NT$318 million while NRE sales grew 7% QoQ and 12% YoY to NT$441 million. Mass production increased 4% QoQ and 152% YoY to NT$2,605, showing growth for the fifth consecutive quarter. Revenue in the first half this year was NT$6,572 million, an increase of 104% YoY to a new record. Net income was NT$1,331 million, an increase of 280% YoY with stronger growth in earnings than in revenue, reflecting the Company’s capability in operating leverage. Accumulated net income for the first half this year has exceeded the full year of 2021 earnings.

Looking into the third quarter, in the face of cyclical fluctuations, the Company will adjust product mix and mass production orders to respond to market changes. The results of the first half of the year reflected the Company’s longtime efforts bearing fruits. Faraday’s business growth this year backed mainly by mass production is expected to surpass last year, with record sales of IP, NRE and mass production. Faraday will continue to enhance product applications and customer base to make structural changes in fundamentals, resulting in recurring income as its growth driver to counter macro fluctuations.

[1] Unless otherwise stated, all financial figures discussed in this announcement are prepared in accordance with Taiwan-International Financial Report Standards (TIFRSs). They represent comparisons among the three-month period ended June 30, 2022, the three-month period ended March 31, 2022, and the equivalent three-month period that ended June 30, 2021. For all 2Q22 results, New Taiwan Dollar (NT$) amounts have been converted into U.S. dollars at the exchange rate of NT$29.094 to one U.S. dollar.

Summary of Operating Results

(Amount: NT$ million)	2Q22	1Q21	QoQ% change
Revenues	3,365	3,207	4.9
Gross profit	1,660	1,593	4.2
Operation expenses	(835)	(857)	(2.6)
Operating income	825	736	12.1
Non-operating items	15	111	(86.7)
Net income attributed to stockholders of the parent	661	670	(1.3)
EPS (NTD)	2.66	2.70

more details