Advantech Reports 3Q20 EPS of NT$2.52
10/30/2020
Advantech (ticker: 2395.TW) today announced the following consolidated financial results for the third quarter of 2020 ending September 30:
- Revenue was NT$13.05 billion, down 7% QoQ and down 9% YoY
- Gross profit was NT$5.192 billion, down 10% QoQ and down 9% YoY
- Operating profit was NT$2.264 billion, down 20% QoQ and down 14% YoY
- Net income was NT$1.941 billion, down 16% QoQ and down 9% YoY
- Earnings per share was NT$2.52, down 16% QoQ and down 9% YoY
Regarding the accumulated to 3Q20 operating results in US dollar, Advantech achieved an overall revenue of US$1,280 million, down 2.2% YoY, in line with company guidance. The revenues of Industrial-IoT Group (IIoT) and Applied Computing Group (ACG) grew 1% and 1% YoY respectively in YT3Q20. And the revenues of Embedded-IoT Group (EIoT) and Service-IoT Group (SIoT) declined 5% and 3% YoY respectively in YD3Q20. Cloud-IoT Group (CIoT, aka the Networks & Communications Group) reported 11% YoY revenues in YT3Q20, due to the delay of customer shipment.
In terms of a geographic overview, most markets reported QoQ revenue decline in 3Q20. For YT3Q20 revenue, China and Taiwan market reported 1% and 3% YoY growth; contributing 24% and 6% to total revenue. Norther America, Europe and North Asia Markets reported 2%, 8% and 4% YoY decline for YT3Q20 revenues respectively; contributing 29%, 16%, and 11% to total revenue.
Mr. Eric Chen, President of General Management at Advantech, stated that, “As we mentioned earlier that the business impact of COVID-19 is broad-based and continuous, the third quarter booking is lower than year-to-date-average, indicating a weakening 4Q20 outlook. But we do see certain improvement at September booking. Another negative factor will come from the strong NTD, which will impact the reported revenues growth. Given the impact of COVID-19, the overall top-line hit-rate this year will come to a record low post the financial crisis. We expect Advantech revenues momentum will recover in 2021. At the same time, we will continuingly improve our product portfolio and operating efficiency.”
