WIN Semiconductor posts strong Q1 results
WIN Semiconductors, the Taiwanese GaAs foundry service company, has reported strong results for Q1 2015, with nearly double the profits of Q1 2014 and 68 percent year on year revenue increase.
Net revenues for the quarter finished at $90.1 million, up 68 percent year on year, and 3 percent quarter on quarter. Gross margin improved sequentially by 0.6 percentage points to 37.9 percent while operating margin increased 2.7 percentage points to 27.6 percent. Operating profit came in at $24.9 million up 281 percent year-on-year, and 14 percent quarter-on-quarter.
Net profit finished at $19.9 million, up 190 percent year on year, up 11 percent quarter on quarter.
WIN's management commented: "We are delighted to announce a stronger-than-expected result for the first quarter of 2015 in a traditional low season. Revenues increased by 3 percent quarter-on-quarter, primarily driven by robust demand from customers."
"Our gross margin in the first quarter further improved to 37.9 percent, which is a record high since the company's listing. This is a combined result of improving product mix and higher utilisation rate. The first quarter revenues were supported by infrastructure and cellular related orders, which accounted for 15-20 percent and 50-55 percent of total revenues respectively. Our operating margin expanded to 27.6 percent from 24.9 percent last quarter, demonstrating our capability to continuously improve operating efficiencies.
"Looking ahead, we maintain our view that we are entering a stronger season in the second quarter. We expect the second quarter revenues to grow by double digit quarter-on-quarter off a high first quarter base. We also aim to maintain our second quarter gross margin at the first quarter level given our ongoing efforts in product diversification."
The company says it expects 2Q15 revenues to grow by double digit off a high first quarter base. It also aims to maintain its 2Q15 gross margin at the 1Q15.
