Advantech Reports 2Q20 EPS of NT$3.29
Advantech (ticker: 2395.TW) today announced the following consolidated financial results for the second quarter of 2020 ending June 30:
- Revenue was NT$14.018billion, up 24% QoQ and flattish YoY
- Gross profit was NT$5.766 billion, up 31% QoQ and up 7% YoY
- Operating profit was NT$2.841 billion, up 72% QoQ and up 22% YoY
- Net income was NT$2.308 billion, up 78% QoQ and up 22% YoY
- Earnings per share was NT$3.29, up 78% QoQ and up 21% YoY
Regarding the 1H20 operating results in US dollar, Advantech achieved an overall revenue of US$841 million, flattish YoY, in line with company projections. The revenues of Industrial-IoT Group (IIoT) and Applied Computing Group (ACG) grew 2% and 1% YoY respectively in 1H20. And the revenues of Embedded-IoT Group (EIoT) and Cloud-IoT Group (CIoT, aka the Networks & Communications Group) declined 3% and 2% YoY respectively in 1H20. The business sentiment of Service-IoT Group (SIoT) was seriously impacted by the large size lockdowns and the 1H20 revenues declined 8% YoY.
In terms of a geographic overview, most markets reported QoQ revenue rebound in 2Q20. Chine market was the best performer in 2Q20 with 87% QoQ growth and the overall revenues turned 4% YoY in 1H20, contributing 23% to total revenue. Taiwan market also reported a 13% YoY growth in 1H20, contributing 8% of total revenue. In addition, revenue for the North America, Europe, and North Asia markets dropped 3%, 9%, and 6%, respectively in 1H20, contributing 29%, 17%, and 10% to total revenue.
Mr. Eric Chen, President of General Management at Advantech, stated that, “The business impact of COVID-19 is broadbase and continuous. We experienced a significant rebound in revenues and profitability in 2Q20. However, looking forward, there are still a lot of uncertainties for 2H20. Some customers postponed their shipment schedule since June and have a conservative view for 3Q20 outlook. In near term, we may pay more focus on working capital and reduce inventory days. In mid-to-long term, we are positive for edge computing and industrial IoT sectors and will consistently invest in R&D teams and advanced technology.”