Wiwynn Reports First Quarter 2020 Financial Results

Following the Board of Directors meeting today (May 8), Wiwynn Corporation announced consolidated revenue of NT$35.137 billion, operating profit of NT$1.810 billion, profit before tax (PBT) of NT$1.834 billion, profit after tax (PAT) NT$1.463 billion, and basic earnings per share (EPS) of NT$8.37 for the first quarter ended March 31, 2020.

Compare to the same period of the prior year, the number of server shipments has increased, offset by the lower average selling price due to the changes in the product portfolio. Revenue decreased by 8.6% year-over-year. The overall profitability was improved. Year-over-year, gross margin increased by 1.4ppt to 7.5%, operating margin increased by 1.1ppt to 5.2%. PAT margin increased by 1.1ppt to 4.2%. EPS was NT$8.37, higher than NT$7.77 in the same period of the prior year.

Compare to the fourth quarter of 2019, supply chains have been affected by COVID-19 precaution policies in various regions. The number of server shipments and consolidated revenue both decreased, revenue decreased by 29.1% quarter-over-quarter. Quarter-over-quarter, gross margin increased by 0.2ppt to 7.5%, operating margin decreased by 0.5ppt to 5.2%. PAT margin increased by 0.3ppt to 4.2%.
Looking forward to 2020, the long-term demand of data center industry remains stable. Considering short-term uncertainties generated from COVID-19 pandemic, the Company stays optimistic and will be cautiously watching the overall demand.

To respond to the pandemic impacts on global economics and supply chains, the Board of Directors meeting approved the issuance of up to NT$10 billion in corporate bonds, to provide sufficient working capital for stable inventory, and the flexibility of operations.