M31 Technology: Q1 EPS NT$2.24, Up 75% YoY, Revenue Growth for the 19th Consecutive Month

May 26, 2023 -- M31 Technology, a global leader in silicon intellectual property (IP), at today’s investor conference (5/23/2023), stated that the first-quarter revenue was NT$312 million, representing a growth of 26.3% compared to the same period last year. Additionally, M31 benefited from the disposal of non-property assets, contributing to a net profit of NT$70.074 million, with earnings per share of NT$2.24, an annual increase of 75%. Both the revenue and profit for the first quarter reached all-time highs for the same period, as well as the revenue growth rate showing 19 consecutive months of consistent growth while maintaining a high gross profit margin of 100%.

Looking back at the first quarter, despite the adverse global economic environment and the traditional off-season effects, M31 continued to achieve growth amidst the semiconductor industry's downturn. The record-high revenue performance was mainly driven by strong demand for advanced process IP, with over 85% of licensing revenue coming from processes below 28nm. As foundry capacity utilization rates ramp up and the growth cycle of new mass production cases progresses, the contribution of royalties is expected to show robust growth throughout this year. Moreover, the supply chain landscape has shifted due to the ongoing tech war and the increasing complexity of high-end process application chip designs, M31 has officially introduced advanced technology platforms for FinFET processes below 16nm in collaboration with foundries. With the increase in customer-designed cases and the expanding volume of chip production each quarter, advanced processes have become the key growth engine for revenue. Additionally, M31's product portfolio includes the widely adopted and comprehensive 22/28nm process platform, which is expected to experience continued growth in overall capacity utilization due to the gradual release of new semiconductor wafer supply in the 28nm segment globally. This growth will be driven by various applications, including automotive, power management, and display drivers, providing M31 with a stable growth market in mature process IP. Meanwhile, in the high-barrier automotive chip market, M31 has secured orders from leading automotive chip manufacturers in the United States, Europe, Japan, South Korea, and China in recent years. The company continues to benefit from the increasing demand for automotive chips and their longer product cycles, which not only boost the growth in licensing revenue but also contribute to long-term and steady royalty income as automotive chip production enters mass production.

Looking ahead, CEO Scott stated that the demand for IP is entering a period of higher structural growth amidst the global arms race for semiconductor capacity expansion and the future development of emerging technologies. M31 has already planned to set up a subsidiary in India while continuing to deepen its presence in Taiwan. Currently, M31 is actively expanding R&D teams both domestically and internationally, with ongoing recruitment efforts in Taipei, Hsinchu, and Kaohsiung, to meet the ever-increasing demand for IP in advanced processes. With the gradual recovery of the global semiconductor market, deferred orders are expected to contribute to revenue growth in the second half of the year, and the revenue performance is likely to increase on a quarterly basis. M31 is confident in achieving a double-digit revenue growth target this year, which is expected to continue to reach new highs. The collaboration between M31 and foundries has expanded from mature processes to advanced processes, and the diversified technical platform layout at foundries will support M31's long-term growth momentum.

About M31 Technology

M31 Technology Corporation (6643-TW) is a professional silicon intellectual property (IP) provider. M31 is honored to have received the TSMC Open Innovation Platform® Partner of the Year award for Specialty Process IP for five years in a row. The company was founded in 2011 with its headquarters in Hsinchu, Taiwan. By virtue of substantial experiences in IP development, IC design, electronic design automation fields, and IP integration service, the main products include High-Speed Interface IP designs such as USB, PCIe, MIPI, SATA, and SerDes; Foundation IP such as standard cell library, memory compiler, GPIO, and OPPA library solutions; Analog IP such as ADC, PLL, LDO, and PVT sensor. And continue to expand product portfolios such as processor hardcore IP as well as integration of interface PHY and controller. Learn more at m31tech.com