Advantech's Booking Performance Strengthens First Quarter and Service-IoT Group will be an Important Future Growth Engine
Advantech (stock code: 2395), a global leader in Industrial IoT, hosted its latest investor’s meeting today. Y2020 revenues in Europe and the United States were impacted by the coronavirus (COVID-19) epidemic and fell to 7% and 2% respectively. The EPS in 2020 was NT$9.40, a slight year-on-year decline of 1.2%. Despite a slight drop in profitability, the gross profit margin increased by 0.9% and operating expenses decreased by 4.3%. However, the overall operating margin continued to increase steadily.
Booking performance stronger and component shortages resolved
Eric Chen, President of General Management commented that, “Y2020 second and third quarter revenues were severely affected by the epidemic, but starting from September last year, sales figures began to pick up. Looking toward the first quarter of 2021, revenue will fall in the range of US$430 to US$450 million dollars and the operating margin will be between 16% and 18%.”
Service-IoT Group becomes an important driver for
Advantech’s future growth
MC Chiang, Vice President of Service-IoT Group of Advantech said that, “With the maturity of applications in industrial IoT, The IoT service business unit has slowly become an important engine for Advantech's growth. Since last year, its revenue growth rate has reached 15%, which is higher than the average of all other business units. In terms of long-term development, an internal system integration team called Advantech iCity Services (AiCS), will be established to recruit industry-focused operation team members internally and externally. The team will have a shared R&D platform, business and marketing resources, and a system integration team to quickly integrate and implement exclusive solutions across a variety of industries.”
MC Chiang further pointed out that AiCS organization plans work with eco partner from different industry to be an integrated services company and provide one-stop services in Greater China. In the global market, it will act as a solution provider and export services to local partners through a franchise model to accelerate the development of the AIoT ecosystem.