Wiwynn Reports Second Quarter 2019 Financial Results

Following the Board of Directors meeting today, Wiwynn Corp. announced consolidated revenue of NT$42.263 billion, a quarterly increase of 10%, operating profit of NT$2.075 billion, profit before tax (PBT) of NT$2.091 billion, profit after tax (PAT) NT$1.658 billion, a quarterly increase of 38.9%, and basic earnings per share (EPS) of NT$9.5 for the second quarter ended June 30, 2019.

In the second quarter, the number of server shipment continued to increase which benefited from the increase in customer demand and customers’ request for early shipment in June to mitigate the impact of the potential tariff on products exported from the Mexican manufacturing site to the US market.

The second quarter revenue was still affected by the continuous price drop of key components, resulting in decreases in both average selling price and cost. Year-over-year, second quarter revenue was therefore declined by 8.9%. Gross margin for the quarter decreased by 0.3ppt to 6.8%, operating margin increased by 0.4ppt to 4.9%, PAT margin increased by 0.2ppt to 3.9%.

In the first half of this year, consolidated revenue reached NT$80.7 billion with overall profitability improved. Gross margin for the period increased by 0.3ppt to 6.5%, operating margin increased by 0.5ppt to 4.5% and PAT margin increased by 0.3ppt to 3.5%. Operating profit was NT$3.633 billion, PBT was NT$3.588 billion. PAT reached NT$2.852 billion, an increase of 2.4%, while EPS was NT$17.38, decreased from NT$19.07 in the first half of prior year. The lower EPS is the diluted result of the capital increase in March this year for listing on the Taiwan Stock Exchange.

For the second half of the year, the data center demand is expected to improve gradually and new customers will start to contribute at the end of the year. However, considering the impact of short transition period for data center customers to introduce new products, the company will be cautiously watching.

Attached please find the summary data for your reference.